Delta Air Lines (DL, Atlanta Hartsfield Jackson) and WestJet (WS, Calgary) are set to further enhance their commercial ties after they entered into a preliminary memorandum of understanding to form a commercial joint venture arrangement.

In a joint statement, the US and Canadian carriers said the JV would offer customers access to an extensive transborder route network, as well as coordinated flight schedules for new nonstop flights to new destinations, expanded codesharing, and seamless and convenient connections on the airlines’ extensive networks in the United States and Canada. In addition, it will also offer enhanced frequent flyer benefits including reciprocal benefits for top-tier members of both airlines.

“This agreement will bring heightened competition and an enriched product offering to the transborder segment, both of which will benefit our guests,” Ed Sims, WestJet Executive Vice-President, Commercial, said. “This is an important step in WestJet’s mission to become a global airline. We are delighted to be working with the premier US carrier, Delta Air Lines, in this joint venture.”

The tie-up is subject to regulatory approval.