Delta Air Lines and Canadian carrier WestJet are advancing a joint venture deal for flights between the United States and Canada.

Atlanta-based Delta and WestJet on Thursday announced they had signed a definitive agreement to create the joint venture, which is subject to regulatory approvals. The move follows a memorandum of understanding signed in December 2017 on the intent to form a joint venture. Delta and WestJet already have a code-share marketing partnership to sell joint itineraries.

Delta CEO Ed Bastian said in a written statement that the deal would enable the airlines to offer passengers more destinations, better airport connections and improved frequent flier benefits. The deal for the airlines to work together on U.S.-Canada flights is also aimed at boosting their competitive position against other carriers.

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