Hawkair is making more changes as competition for falling passenger numbers heats up in northwest BC.
The airline has announced a capacity agreement with Central Mountain Air this week.
Under the agreement, Hawkair President Jay Dilley says the airline will operate its existing flights on behalf of CMA and the airlines will share the same booking software.
The development will mean job losses for Hawkair staff in Terrace, including two full-time employees and a half dozen part-time positions.
Dilley says the airline has had to innovate its business model with airlines in the Terrace market chasing fewer and fewer passengers.
Dilley says Hawkair will continue to offer daily service between Terrace and Vancouver, but the frequency will be reduced.
Under the agreement, CMA will use a Hawkair Dash 8 aircraft on its Terrace-Prince George-Kelowna to provide greater capacity.
Hawkair recently announced it was suspending its Prince Rupert flights over the winter and pulled out of the Smithers market over the summer.