HALIFAX, Jan. 31, 2019 /CNW/ - Chorus Aviation Inc. ('Chorus') (TSX: CHR) announced today that pilots of its subsidiary, Jazz Aviation LP ('Jazz'), have ratified the amendments to their collective agreement which was tentatively agreed on January 14, 2019. The Air Lines Pilots Association, International ('ALPA') represents Jazz's pilots based in Vancouver, Calgary, Toronto and Montreal.
"We are very pleased to have finalized an amended collective agreement with our pilots," said Colin Copp, President, Jazz Aviation. "This long-term agreement takes us out to December 31, 2035 and demonstrates our ability to work together for a common goal of continued success for Jazz. My sincere thanks to all involved for their efforts in bringing this amended agreement to fruition."
Ratification of this tentative agreement was a condition of implementing the amendments to, and extension of, the capacity purchase agreement ('CPA') between Air Canada and Jazz, as announced on January 14, 2019. The amendment and extension of the CPA remains subject to completion of Air Canada's $97.26 million equity investment in Chorus, which contains customary conditions to closing. Chorus anticipates closing the equity investment by no later than February 8, 2019, upon which the amendment and extension of the CPA will become effective.
The pending amendments to the CPA provide for a number of significant benefits including fleet modernization with the addition of 14 larger-gauge CRJ900 (76-seat) aircraft of which nine new aircraft will generate additional lease revenue under the CPA. Air Canada will consolidate more of its overall regional capacity in the Jazz operation. Chorus will also secure preferred partner status on the operation of aircraft with up to 50 seats through a right to match third-party offers. Additionally, an enhanced pilot mobility agreement will provide Jazz pilots access to careers at Air Canada. The amended CPA will ensure that Chorus and Air Canada are well positioned to respond as allies to an ever-changing industry.
"I sincerely thank Jazz pilots for embracing this opportunity for an extended and mutually beneficial strategic partnership with Air Canada," said Joe Randell, President and Chief Executive Officer, Chorus.
Headquartered in Halifax, Nova Scotia, Chorus was incorporated on September 27, 2010. Chorus' vision is to deliver regional aviation to the world. Chorus has been leasing its owned regional aircraft into Jazz's Air Canada Express operation since 2011, and established Chorus Aviation Capital to become a leading, global provider of regional aircraft leases. Chorus also owns Jazz Aviation and Voyageur Aviation – companies that have long histories of safe and solid operations that deliver excellent customer service in the areas of contract flying operations, engineering, fleet management, and maintenance, repair and overhaul. Together, the Chorus group of companies can provide a full suite of regional aviation support services. Chorus Class A Variable Voting Shares and Class B Voting Shares trade on the Toronto Stock Exchange under the trading symbol 'CHR'. www.chorusaviation.ca
Jazz Aviation LP has a strong history in Canadian aviation with its roots going back to the 1930s.
As the largest regional carrier 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. Jazz operates more flights and flies to more Canadian destinations than any other airline, and has a workforce of approximately 4,600 professionals, highly experienced in the challenging and complex nature of regional operations.
There are three divisions operated by Jazz Aviation LP: Air Canada Express, Jazz Technical Services and Jazz.
Air Canada Express: Under a capacity purchase agreement with Air Canada, using the Air Canada Express brand, Jazz provides service to a variety of markets throughout North America, with a fleet of 116 Canadian-made Bombardier aircraft.
Jazz Technical Services: Established in May 2016 as a separate division, Jazz Technical Services ('JTS') is dedicated to heavy maintenance, repair and overhaul ('MRO') of Bombardier and Embraer aircraft. JTS provides MRO services to third parties while maintaining the dedication and commitment to its primary customer, Air Canada.
Jazz: Under the Jazz brand, the airline offers charters throughout North America 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.
This news release contains 'forward-looking information'. Forward-looking information is identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "potential", "project", "will", "would", and similar terms and phrases, including references to assumptions. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those expressed in the forward-looking information. Factors that may cause results to differ from those indicated in this news release include the failure by either party to satisfy all conditions precedent to the completion of the equity investment by Air Canada in Chorus, including the failure to satisfy the conditions contained in the Toronto Stock Exchange's conditional listing approval relating thereto. Results indicated in forward-looking information may also differ materially from actual results for a number of reasons, including those described in Chorus' Annual Information Form dated February 14, 2018 and Management's Discussion and Analysis of Results of Operations and Financial Condition dated February 14, 2018 and November 13, 2018. Statements containing forward-looking information in this news release are made as of the date of this news release and Chorus does not undertake any obligation to publicly update such statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.
SOURCE Chorus Aviation Inc.