Air North passengers transferring to Air Canada flights in southern cities will now be able to check their baggage all the way through to their final domestic destination.

The agreement between the two airlines was announced today.

It's the first step toward a full interline agreement between the carriers which would enable travellers to book a combined ticket.

Sharon Miller is the reservations and revenue manager for Air North and the project lead on this partnership agreement. She said today the airline is proud to now be able to offer this service to its passengers.

Until the full interline agreement is in place, passengers will have to show their itinerary to the gate agent so bags can be tagged properly.

For example, if you're leaving from Whitehorse on Air North, you'll have to show the ticket agent the information for the second leg of your journey.

Instead of having to exit and pick up your luggage in one of the gateway cities and go back through security again, your bag will go all the way through as if you flew Air Canada the whole way.

This partnership has been in the works for several months, while Air North upgraded its reservation system to be compatible with Air Canada's system.

"In under four months, Air North's Yukon-based IT team developed the technology necessary to allow for the baggage transfer with Air Canada,” Air North said in a statement.

"Because Air North owns and maintains its own system, it can be quickly customized when adding new modules – giving it one of the most flexible reservation systems in the world.”

Miller said the airlines chose to implement the baggage transfer as a first step to ensure it runs smoothly before undertaking the full interline agreement – but that is the next step.

Air North is still working with WestJet on a similar agreement.

However, WestJet, which began seasonal service to and from Whitehorse in May, requested a full interline agreement right from the start rather than starting off with a baggage transfer agreement.

In an interview this morning, Angela Mah, an Air Canada spokesperson, said "we are always looking for commercial opportunities that would be mutually beneficial for airlines and their joint customers.

"It's going to make it easier when customers are connecting between the two carriers,” she said.

"There is no longer a requirement to pick up the bags and re-check in with the other carrier on domestic flights; they will be transferred automatically.”

Rick Erickson, the president of RP Erickson and Associates, an airline consulting firm, said the partnership is "great for Air North, very good for Air Canada and very, very good for the Whitehorse air passenger.

"I would applaud Air Canada for recognizing the importance of what Air North means to the North. They don't have to do this, but I think they realize that it also makes good business sense,” he told the Star from Calgary.

Erickson said he doubts Air Canada could achieve the same cost structure Air North has.

He also noted the amount of IT work Air North probably undertook to reach the standards set by "a large carrier like Air Canada.”

"It's not easy to maintain the standards that a large, large carrier like Air Canada has,” he said.

"I think we're going to see a very strong partnership grow between Air North and Canada's largest by far, they're three times larger than WestJet is, so Canada's largest air carrier. I think it's a very good partnership.”

With regards to the possible agreement between Air North and WestJet, Erickson said that would be "icing on the cake.”

Rick Karp, the president of the Whitehorse Chamber of Commerce, also only had positive things to say about the baggage agreement today.

"It's outstanding for Whitehorse and Yukon,” he said.

"It creates the stability and the capacity that we need, and the whole idea of Air North growing and continuing to expand its operations into the future, it's nothing but outstanding news.”

"We've worked for 10 years to make travel easier and more affordable for Yukoners,” said Air North president Joe Sparling.

"I'd like to thank all of those at Air North and Air Canada whose efforts made the agreement possible, as well as the Yukon government and other stakeholders who lobbied for such a partnership to take place,” said Sparling.

"We hope passengers with both airlines are as excited about the possibilities as we are, and we invite them to take advantage of this agreement.”

Air North is celebrating its 35th anniversary, as well as the 10th anniversary of its Boeing 737 service between Whitehorse and Vancouver, Calgary and Edmonton.

The airline also serves scheduled destinations in the Yukon, the N.W.T. and seasonal flights to Alaska — as well as charter operations throughout North America.

One in 15 Yukoners, including the Vuntut Gwichin First Nation, hold an equity or employment stake in the airline.