Air Canada and Abra Group signed a Memorandum of Understanding during the IATA Annual General Meeting in Rio de Janeiro to develop a commercial partnership linking Canada, Latin America and other international markets.
The agreement is still subject to regulatory approvals and the signing of definitive contracts. The companies said the proposal includes a joint business arrangement, expanded codeshare coverage, cargo cooperation and closer integration between loyalty programs.
Abra controls Avianca and GOL and also holds a stake in Wamos Air. The group says its airlines operate more than 300 aircraft and serve over 145 destinations in 25 countries.
Air Canada already has codeshare agreements with Avianca and GOL. The new MoU points to a deeper relationship with Abra, giving the Canadian carrier a larger commercial platform in Latin America without acquiring equity in the group.
“Air Canada and Abra Group are building the foundations for an enhanced partnership that will further unlock the Americas,” said Mark Galardo, Air Canada’s Executive Vice President and Chief Commercial Officer, and President of Cargo.
For Abra, the agreement would add a North American partner outside the United States at a time when the group is expanding its presence in South America. GOL and Avianca already give the holding company a large footprint in Brazil, Colombia and other regional markets.
Air Canada has also been adding capacity to South America, including routes São Paulo, Lima, Santiago and Rio de Janeiro. The airline has also cited Quito among future growth opportunities.
“The Canada–South America market is accelerating, and we are investing to capture this momentum,” said Mary-Jane Lorette, Air Canada’s Vice President, Revenue Management, Partnerships and International Affairs.
The partnership could also connect loyalty programs controlled by both sides. Abra manages LifeMiles, linked to Avianca, and Smiles, associated with GOL, while Air Canada operates Aeroplan.
Avianca operates Airbus A320-family aircraft and Boeing 787s, while GOL’s fleet is built around the Boeing 737. Wamos Air provides widebody ACMI capacity with Airbus A330 aircraft.
