Air Canada (AC) has signed a Memorandum of Understanding with Abra Group, the Latin American owner of the Avianca and GOL brands, to pursue a long-term commercial partnership across the Americas, the carriers announced in Rio de Janeiro on June 7, Emerging Travel reported.

The proposed tie-up would establish a Joint Business Agreement on select Canada-Latin America routes, alongside expanded codeshare and revenue sharing, in a market Air Canada has identified as a growth priority as it builds capacity into South America and competes for connecting traffic through its Canadian hubs. Any final agreement remains subject to documentation and regulatory approval.

The framework builds on existing codeshare arrangements and Air Canada's Star Alliance relationship with Avianca, as well as a longer collaboration with GOL.

Under the proposals, the partners would coordinate sales and distribution, align airport services, baggage policies and disruption handling, and widen frequent-flyer reciprocity across the Aeroplan, LifeMiles and Smiles loyalty programmes.

The two sides also flagged scope for closer cargo cooperation to support trade flows across the region. Air Canada has been expanding into Lima, Santiago and Rio de Janeiro, with further growth planned in Quito.

"The Canada-South America market is accelerating, and we are investing to capture this momentum," said Mary-Jane Lorette, vice-president, revenue management, partnerships and international affairs at Air Canada.

Abra brings together Avianca, the second-oldest airline in the world, and GOL, one of Brazil's largest carriers, alongside a strategic investment in Wamos Air and convertible debt linked to Sky Airline.

The group employs around 30,000 people and operates a fleet of more than 300 aircraft serving over 145 destinations in more than 25 countries.

"This milestone agreement with Air Canada reinforces our ambition to redefine connectivity across the Americas and beyond," said Angus Clarke, chief commercial officer at Abra.