Etihad Airways and Air Canada have agreed to increase cooperation through a new codeshare agreement. The two airlines already have interline arrangements in place.

The new agreement will offer through-checked bags, reciprocal frequent flyer benefits and codeshares between Abu Dhabi and several unspecified North American points served by Air Canada through its Toronto hub.

Discussions to finalize details are underway, with the aim of introducing codeshare services in the third quarter.

Subject to regulatory approval, Etihad will place its EY code on Air Canada flights between Toronto and select North American points.

In return, Air Canada will place its AC code on Etihad services between Toronto and Abu Dhabi, as well as the latter’s flights between London Heathrow and Abu Dhabi.

This announcement follows the recent decision by the governments of United Arab Emirates (UAE) and Canada to restore the previous visa regime, which means Canadian nationals can once again obtain a free visa on arrival in the UAE.

The UAE is Canada’s largest export market in the Middle East region and more than 40,000 Canadians and 150 Canadian companies are based in the UAE.