Halifax-based Air Atlantic will terminate its commercial agreement with Canadian Airlines on 24 October, and cease all flight operations. Air Atlantic’s owner, IMP Group, will continue to maintain the airline’s operating certificate and will study the viability of a non-scheduled operation over the winter months, although the current excess capacity in the Canadian charter market does not bode well for this plan. The routes currently flown by Air Atlantic will be taken over by Montreal-based Inter-Canadian. IMP will continue to provide ground support for Inter-Canadian. Air Atlantic’s three BAe 146-200s will be re-marketed by BAe Aerospace Asset Management-Jets (AMJ).