Chorus Capacity Purchase Agreement
The deal, announced in mid-January and concluded on Feb. 4, adds $940 million to the latest CPA ($716 million), including $310 million in fixed-cost revenue and provides $630 million in rental income. MONTREAL, Jan. 14, 2019 /CNW Telbec/ – Air Canada today announced an agreement to amend and extend the Capacity Purchase Agreement (CPA) with Jazz Aviation LP, a 100% subsidiary of Chorus Aviation Inc., under which Jazz currently operates certain Air Canada Express regional flights. The changes are expected to provide long-term stability to Chorus, confirm jazz as Air Canada`s largest express carrier in the future, and allow for the growth of Chorus` leasing business through Air Canada`s equity participation and predictability of Jazz`s cash flows from CPA`s operations by 2035. The changes will strengthen the strength and competitiveness of the Air Canada Express brand and its regional network from coast to coast and allow Air Canada to achieve significant CPA savings, while enhancing network and fleet flexibility compared to the current agreement. Forward-looking information refers to analysis and other information based on forecasts of future results, estimates of indeterminable amounts and other uncertain events. Forward-looking information is naturally based on assumptions, including those described below, and is subject to significant risks and uncertainties. Forecasts or forecasts or forward-looking statements cannot be relied upon, including due to external events, changes in market conditions and general business uncertainties.