MONTREAL — Air Canada and Sky Regional Airlines have signed off on a 10-year extension to their capacity purchase agreement.

With its fleet comprised exclusively of Embraer 175 jet aircraft that has grown to 25 in recent years, Sky Regional strengthens Air Canada’s competitive position in the rapidly evolving North American regional markets as low cost operators continue to grow, both in Canada and the U.S., said Kevin Howlett, Senior Vice President, Regional Markets and Government Relations at Air Canada.

“This 10-year extension to the existing capacity purchase agreement with Sky Regional Airlines underscores our confidence in our Air Canada Express partner to provide a seamless operation and customer experience on behalf of Air Canada in a number of our key domestic and transborder regional markets on a cost competitive basis.”

Sky Regional Airlines started flight operations under the Air Canada Express banner on May 1, 2011. The company began with five Bombardier Q400 aircraft flying to and from Toronto’s Billy Bishop Airport and added 15 Embraer 175 aircraft in 2013. The carrier serves the U.S. northeast markets, flying 100+ flights per day into cities such as New York, Boston, Philadelphia, Washington and Chicago. In 2016, Sky Regional added an additional five E175 aircraft to its fleet servicing Jacksonville, Houston, Denver and Atlanta.

“We are very pleased that Air Canada has recognized our commitment to the passenger experience, and are looking forward to continued success as Air Canada offers more regional options for Canadians,” said Russell Payson, Chairman, Sky Regional Airlines.

In addition to Sky Regional, Air Canada has capacity purchase agreements with its other regional airline partners, Jazz, Air Georgian and EVAS, that operate regional Air Canada Express flights on behalf of Air Canada.