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Jazz pilots ratify 11 year tentative agreement

Jan 30, 2015

HALIFAX, Jan. 30, 2015 /CNW/ – Jazz Aviation LP (“Jazz”), a wholly owned subsidiary of Chorus Aviation Inc., announced that its pilots, represented by the Air Line Pilots Association (‘ALPA’) have ratified their tentative agreement reached on January 13, 2015. The term of this agreement is 11 years expiring on December 31, 2025.

“Reaching a new agreement with our pilots serves as a catalyst for our transformation to a stronger competitor in the regional aviation industry,” said Jolene Mahody, Chief Operating Officer, Jazz. “Congratulations and thank you to all involved for successfully completing this important process.”    

ALPA represents approximately 1380 pilots employed at Jazz. The term of the pilot agreement is consistent with the 11 year term of Chorus’ proposed amended capacity purchase agreement with Air Canada(that remains subject to the completion of certain terms and conditions), and therefore provides long-term labour stability. The new collective agreement also provides for productivity enhancements, cost control measures and incentives to grow at competitive rates.

Caution Regarding Forward-Looking Information

CHORUS AVIATION INC.

Chorus advises that certain statements in this news release may contain statements which are forward-looking. These forward-looking statements are identified by the use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “would”, and similar terms and phrases, including references to assumptions. Such statements may involve but are not limited to comments with respect to strategies, expectations, planned operations or future actions.

Forward-looking statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and other uncertain events. Forward-looking statements, by their nature, are based on assumptions, including those described below, and are subject to important risks and uncertainties. Any forecasts or forward-looking predictions or statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. Such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to differ materially from those expressed in the forward-looking statements. Results indicated in forward-looking statements may differ materially from actual results for a number of reasons, including without limitation, risks relating to Chorus’ relationship with Air Canada, risks relating to the airline industry, airline leasing, energy prices, general industry, market, credit, and economic conditions, (including economic downturns allowing Air Canada to decrease the amounts it pays under the CPA during such downturns), competition, insurance issues and costs, supply issues, war, terrorist attacks, epidemic diseases, environmental factors, acts of God, changes in demand due to the seasonal nature of the business, the ability to reduce operating costs and employee counts, secure financing, employee relations, labour negotiations or disputes, restructuring, pension issues, currency exchange and interest rates, leverage and restructure covenants in future indebtedness, dilution of Chorus shareholders, uncertainty of payments, managing growth, changes in laws, adverse regulatory developments or proceedings, pending and future litigation and actions by third parties. The forward-looking statements contained in this discussion represent Chorus’ expectations as of January 30, 2015, and are subject to change after such date. However, Chorus disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.

About Jazz Aviation LP

Jazz Aviation LP has a strong history in Canadian aviation with its roots going back to the 1930s. Jazz is wholly owned by Chorus Aviation Inc. and continues to generate some of the strongest operational and financial results in the North American aviation industry. As the largest regional airline in Canada, Jazz has a proven track record of industry leadership and exceptional customer service, and has leveraged that strength to deliver value to all its stakeholders. The Company operates more flights and flies to more Canadian destinations than any other airline, and currently has a workforce of approximately 4,200 professionals highly experienced in the challenging and complex nature of regional operations. Jazz employees are an integral part of communities across our nation with 21% of our workforce based in Atlantic Canada, 46% based in Central Canada, 32% based in Western Canada, and 1% in Northern Canada.

Under a capacity purchase agreement with Air Canada, using the Air Canada Express brand, Jazz provides service to and from lower-density markets as well as higher-density markets at off-peak times throughout Canada and to and from certain destinations in the United States. In January of 2015 Jazz is operating scheduled passenger service on behalf of Air Canada with approximately 725 departures per weekday to 55 destinations in Canada and to 18 destinations in the United States. With a fleet of 122 Canadian-made Bombardier aircraft, Jazz flies more daily flights to more Canadian destinations than any other airline.

Under the Jazz brand, the airline offers charters throughout North America with a dedicated fleet of three Bombardier aircraft for corporate clients, governments, special interest groups and individuals seeking more convenience. Jazz also has the ability to offer airline operators services such as ground handling, dispatching, flight load planning, training and consulting.

For more information, visit www.flyjazz.ca.

For further information: Manon Stuart, (902) 873-5054, Halifax, Nova Scotia, manon.stuart@flyjazz.ca; Debra Williams, (905) 671-7769, Toronto, Ontario, debra.williams@flyjazz.ca