Air Canada has announced an agreement to amend and extend the Capacity Purchase Agreement (CPA) with Jazz Aviation LP, a wholly-owned subsidiary of Chorus Aviation Inc., and a $97.26 million equity investment in Chorus.
Jazz Aviation currently operates certain regional Air Canada Express flights.
The CPA will be extended by an additional 10 years ending December 31, 2035. Amendments include simplifying and modernizing Jazz's fleet, consolidating more of Air Canada's overall regional capacity into Jazz's footprint, thereby lowering Air Canada's overall regional costs.
“We are very pleased to have arrived at this win-win agreement with Jazz and Chorus, which will give us long-term stability, more competitive cost certainty and the flexibility to modernize the regional fleet for the benefit of our customers. The Amendments will allow us to provide regional services more cost effectively so that we can compete more efficiently, deploying the aircraft best suited for a given regional market and also generate additional traffic to feed our international network," said Calin Rovinescu, President and Chief Executive of Air Canada.
Amendments are subject to ratification of a tentative collective agreement between Jazz and the Airline Line Pilots Association and once approved, will be retroactive to 1JAN.
Bruce Parkinson Editor-in-Chief
An observer and analyst of the Canadian and international travel industries for over 25 years, Bruce uses the pre-dawn hours to prepare a daily news and information package to keep industry members up to date.