Chorus Aviation announces acquisition of nine new Bombardier CRJ900 aircraft
Feb 6, 2019
HALIFAX, Feb. 6, 2019 /CNW/ - Chorus Aviation Inc. ('Chorus') (TSX: CHR) today announced that it has entered into a firm purchase agreement with Bombardier Commercial Aircraft to acquire nine CRJ900 regional jet aircraft. These aircraft will be operated by its subsidiary, Jazz Aviation LP ('Jazz'), under the Air Canada Express brand as per Jazz's Capacity Purchase Agreement ('CPA') with Air Canada. The nine aircraft will be delivered in 2020.
"The addition of these new CRJ900 aircraft is a significant step in modernizing the Jazz fleet with larger aircraft while supporting the continued growth of our leasing revenue," said Joseph Randell, President and Chief Executive Officer, Chorus. "The economics of this aircraft will enhance our competitive position and our ability to more effectively respond to the needs of our customer and changing market demand."
"We are delighted that Chorus and Jazz have chosen Bombardier products for the growth and renewal of their fleet. It reaffirms their confidence in the value that the CRJ provides to airlines, said Fred Cromer, President, Bombardier Commercial Aircraft. The CRJ900 aircraft is ideally suited to growing markets and is recognized for its superior performance, economics and passenger comfort."
These nine 76-seat aircraft will be configured in two classes of service with 12 seats in business class and 64 seats in economy class, including 20 preferred economy seats.
The new aircraft will be equipped with Bombardier's new ATMOSPHÈRE cabin featuring a larger passenger living space, increased overhead bin capacity, more spacious lavatories, and overall improved aesthetic details to enhance the passenger experience.
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 has established Chorus Aviation Capital Corp. to become a leading, global provider of regional aircraft leases. Chorus also owns Jazz Aviation LP and Voyageur Aviation Corp. – 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 TSX under the trading symbol 'CHR'.
Jazz 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 4,900 professionals, highly experienced in the challenging and complex nature of regional operations.
There are three divisions operated by Jazz: 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.
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 the manufacturer to deliver the aircraft in accordance with the anticipated delivery schedule or failure by either party to satisfy all conditions precedent to the completion of the transactions contemplated by the purchase agreement. 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.
For further information: Chorus Media Contacts: Manon Stuart, Halifax, Nova Scotia, (902) 873-5054, email@example.com; Debra Williams, Toronto, Ontario, (905) 671-7769, firstname.lastname@example.org; Chorus Analyst Contact: Nathalie Megann, Halifax, Nova Scotia, (902) 873-5094, email@example.com