Canada’s PAL Airlines Granted $6.5M to Restore Connectivity

PAL Airlines has been awarded CAD9 million (USD6.5 million) in federal and provincial funding to restore regional air connectivity across Atlantic Canada. The airline was selected through a request for proposals designed to reinstate vital air services in Nova Scotia, New Brunswick, and Prince Edward Island.

The funding package will support daily flights linking Halifax, Sydney, Charlottetown, Fredericton, and Moncton. The Atlantic Canada Opportunities Agency (ACOA) will provide CAD5 million (USD3.6 million), while Nova Scotia will contribute CAD2.9 million (USD2.1 million), Prince Edward Island CAD840,000 (USD610,000), and New Brunswick CAD458,000 (USD333,000).

The three-year pilot program will position Halifax as a hub, with PAL Airlines basing regional aircraft in the area to improve connectivity across the provinces. The subsidy is expected to cover up to 50% of eligible project costs, ensuring sustainable operations and reliable air links for communities that have faced reduced access since the pandemic.

The initiative is seen as a critical step in boosting economic growth, business travel, and tourism across Atlantic Canada, where air service reductions have long challenged regional development. PAL Airlines, headquartered in St. John’s, Newfoundland and Labrador, has a track record of serving underserved markets and is expected to play a key role in rebuilding regional aviation networks.

According to fleet data, PAL Airlines operates one Beech 1900D, ten DHC-6-300s (wet-leased from Air Borealis), two DHC-8-100s, one DHC-8-300, three DHC-8-Q300s, and fifteen DHC-8-Q400s.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com