New agreement delivers greater certainty and long-term sustainability.
HALIFAX – Chorus Aviation Inc., parent company of Jazz Aviation LP announced that all terms and conditions have been met to establish an amended and extended capacity purchase agreement (‘CPA’) with Air Canada effective January 1, 2015.
“We are transforming Chorus to become a more formidable competitor in the regional aviation industry,” said Joseph Randell, President and Chief Executive Officer, Chorus. “The time is right to restructure the CPA as it was no longer competitive in the ever-changing regional environment. Significant achievements such as the simplification and modernization of our fleet combined with an industry-leading agreement with our pilots, and a new compensation structure under the CPA all serve as catalysts to secure our cornerstone business with our customer Air Canada, and to create incremental value through growth and diversification.”
“We will build upon our strengths as a proven, experienced and long-term regional operator,” continued Mr. Randell. “Our interests are aligned with Air Canada. Our amended CPA and fleet modernization improves fleet economics and enables a stronger relationship for the long term. Chorus will continue to enjoy strong compensation levels over our 11-year horizon which is anticipated to support the current dividend and diversification opportunities going forward.”
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