Chorus Aviation Announces Leasing Transaction with SpiceJet of India
Apr 17, 2019
Delivering regional aviation to the world
HALIFAX, April 17, 2019 /CNW/ - Chorus Aviation Inc. ('Chorus') (TSX: CHR) announced today that Chorus Aviation Capital ('CAC') has entered into agreements to deliver five new Bombardier Q400 aircraft to SpiceJet of India under a sale and leaseback transaction. CAC has delivered two aircraft and anticipates delivering all aircraft by the end of June 2019.
"We are excited to welcome SpiceJet as a new lessee. India is one of the fastest-growing air passenger markets in the world, and SpiceJet is well positioned to capitalize on that growth. This is an excellent start for Chorus Aviation Capital in this critically-important market," said Steve Ridolfi, President of Chorus Aviation Capital.
Ajay Singh, Chairman and Managing Director, SpiceJet, said, "We see significant opportunities for growth, particularly in light of the recent reduction in aviation capacity in India, and are adding these five Q400s to support our expansion and ability to connect smaller towns and cities in India. We are delighted to be working with Chorus Aviation Capital on this addition to our fleet and look forward to future opportunities to work together."
Upon delivering all five aircraft included in this transaction, and five other aircraft pending delivery to other customers, CAC's portfolio will consist of 45 aircraft comprising 33 turboprops and 12 regional jets valued at approximately US $960 million.
About Chorus Aviation Capital
Established in 2017, Chorus Aviation Capital currently has relationships with 13 regional airlines based in 13 countries. CAC is focused on building a portfolio of new and mid-life regional aircraft, while leveraging the synergies inherent among its affiliated companies to provide a full suite of regional aviation services.
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 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 Toronto Stock Exchange under the trading symbol 'CHR'. www.chorusaviation.ca
About SpiceJet Ltd.
SpiceJet is India's favourite airline that has made flying affordable for more Indians than ever before. SpiceJet operates 516 average daily flights to 60 destinations, including 51 domestic and 9 international ones. The airline has a fleet of 48 Boeing 737, 27 Bombardier Q-400s and one B737 freighter. The majority of the airline's fleet offers SpiceMax, the most spacious economy class seating in India.
SpiceJet also operates a dedicated air cargo service under the brand name SpiceXpress offering safe, on-time, efficient and seamless cargo connectivity across India and on international routes. SpiceJet is the first Indian airline to offer end-to-end cargo services and the airline's freighters fleet consists of Boeing 737 aircraft.
SpiceJet's standing as the country's favourite airline has been further reinforced by the multiple awards and recognitions which includes the US-India Strategic Partnership Forum Leadership Award to Ajay Singh, Global 'Low-Cost Leadership Award' conferred to Mr Singh at the Airline Strategy Awards 2018 in London, 'BML Munjal Awards 2018' for 'Business Excellence through Learning and Development', 'Best Domestic Airline' Award at Wings India 2018, 'EY Entrepreneur of the year 2017 for Business Transformation' by Ernst & Young, The CAPA Chairman's Order of Merit for fastest turnaround in FY 2016, 'Asia's Greatest Brands - 2016', 'Global Asian of the Year Award' & 'Asia's Greatest CFO 2016' at the AsiaOne Awards held in Singapore, 'World Travel Leaders Award' at WTM London, 'Best Check- in Initiative' award by Future Travel Experience global awards in Las Vegas, 'Best Domestic Airline' award at the 10th ASSOCHAM International Conference & Awards (Civil Aviation & Tourism).
This news release may contain '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", "pending", "project", "will", "would", and similar terms and phrases. 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 indicated in the forward-looking information. Actual results may differ materially from results indicated in forward-looking information for a number of reasons, including the failure to close the transactions referenced in this news release on the terms and conditions currently contemplated by Chorus, or at all, as well the risk factors identified in Chorus' Annual Information Form dated February 21, 2019 and in Chorus' public disclosure record available at www.sedar.com. Statements containing forward-looking information in this news release represent Chorus' expectations as of the date of this news release (or as of the date they are otherwise stated to be made) and are subject to change after such date. Chorus disclaims any intention or obligation to update or revise 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