Canada’s PAL Airlines Wins Newfoundland Air Service Contract

PAL Airlines has secured a contract from the government of Newfoundland and Labrador to operate an intraprovincial air travel loop between St. John’s, Gander, and Deer Lake from June 15 to September 20, 2025. The initiative is part of a broader plan to enhance regional air connectivity and promote tourism across the island.

The provincial government announced the contract as part of its CAD15 million (USD10.9 million) 2025 budget for tourism and air access. “This new route enhances our schedule, giving passengers even more options to build itineraries that best meet their needs,” said Calvin Ash, president of PAL Airlines.

The new loop, however, excludes Labrador, sparking criticism from stakeholders in the region. Dean Clarke, chairman of Goose Bay Airport Corporation, argued that the service should be labeled as “intra-Newfoundland” rather than “intraprovincial” and urged the government to improve connectivity to Labrador by reducing airport fees and expanding air links.

According to ch-aviation data, PAL’s largest operations by capacity are based at Goose Bay (14.3%) and Wabush (12.8%), Labrador’s two main airports. From these hubs, the airline serves 12 and 10 destinations, respectively.

PAL Airlines operates a fleet of 22 in-house aircraft, including DHC-8-100s, DHC-8-300s, DHC-8-Q300s, and DHC-8-Q400s. It also wet-leases 10 DHC-6-300s from subsidiary Air Borealis and one DHC-8-100 from Perimeter Aviation to support its regional network.

The temporary summer route highlights the province’s effort to support local carriers and stimulate regional air travel.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

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