Category: Air Canada

Gamsahabnida! Air Canada Marks 25 Years of Service to Seoul, South Korea

Provided by Air Canada/CNW

  • Inaugurated three times weekly flights in 1994 onboard Boeing 747 Combi aircraft
  • Flights today are daily onboard Boeing 777 and 787 Dreamliners from both YVR and Toronto Pearson

MONTREAL, May 17, 2019 /CNW Telbec/ – Air Canada is excited to mark 25 years of non-stop service between Canada and Seoul, South Korea. To celebrate this milestone, Air Canada has a special promotion featuring fares from Vancouver to Seoul return, from as low as $1,325 CDN all in, and from Toronto to Seoul return, from as low as $1,525 CDN all in. These celebratory fares are available until May 20, 2019 and are available for purchase now on aircanada.com and via travel agents.

Air Canada launched service to Seoul in 1994 with the Boeing 747-Combi (top), a route that continues today with Boeing 777s and Boeing 787 Dreamliners (bottom). (CNW Group/Air Canada)
Air Canada launched service to Seoul in 1994 with the Boeing 747-Combi (top), a route that continues today with Boeing 777s and Boeing 787 Dreamliners (bottom). (CNW Group/Air Canada)

Prior to the departure of today’s flight AC63 from YVR to Seoul, a celebration was held at YVR where customers also enjoyed traditional cultural performances and activities prior to boarding.

“We are thrilled to celebrate 25 years of proud service between Canada and South Korea. Since 1994, millions of customers have travelled on our airline between our two countries to conduct business, visit friends and family, study, learn more about each country’s wonderful heritage, and to visit UNESCO and cultural attractions. Both countries have introduced a diverse range of delicious, culinary traditions to each other with Korean BBQ and other specialties now enjoyed by more and more Canadians. We are very pleased to be an important link between our two countries, and to help sustain the positive relationship our nations enjoy,” said John MacLeod, Vice President, Global Sales and Alliances, at Air Canada.

“On behalf of YVR, I would like to congratulate Air Canada on a successful 25 years of serving Vancouver and Seoul,” said Craig Richmond, President & CEO, Vancouver Airport Authority. “Air Canada’s Vancouver to Seoul service is key to our vision of creating a world-class hub. It connects Canada to an incredible country, with a deep history and unique culture, and one of the world’s most thriving and innovative economies. We are excited for the future, as we work with Air Canada to build their trans-Pacific hub at YVR, and the ongoing success of the Seoul service.”

Twenty-five years ago in May 1994, Air Canada inaugurated three times weekly flights to Seoul, the first Asia-Pacificdestination to be served by Canada’s flag carrier.  At that time, the routing was Toronto-Vancouver-Seoul and flights were operated with Boeing 747-400 Combi aircraft.  Air Canada’s flights originally operated to and from Seoul’s Gimpo International Airport (GMP), later moving to Incheon International Airport (ICN) when it opened in 2001, and where Air Canada’s flights continue to operate from today.

Today, Air Canada operates daily flights year-round between Vancouver and Seoul with Boeing 787 Dreamliners, and up to daily flights year-round between Toronto and Seoul with both Boeing 777s and 787 Dreamliners.

Air Canada’s flights to and from Seoul are scheduled to connect easily and conveniently to and from a multitude of destinations at both its YVR trans-pacific hub and at its Toronto Pearson global hub.  Customers can collect and redeem Aeroplan Miles through Canada’s leading loyal program when travelling with Air Canada, and eligible customers also enjoy priority check-in, priority boarding, Maple Leaf Lounges, and other benefits.

Air Canada Wins for Best Premium Economy Class and Best Airline for Onboard Entertainment at Global Traveler Awards

Provided by Air Canada/CNW

MONTREAL, May 17, 2019 /CNW Telbec/ – Air Canada has won two top prizes at the Global Traveler 2019 Leisure Lifestyle Awards honouring the best in the world of leisure and lifestyle travel. The carrier was voted Best Premium Economy Class and Best for Onboard Entertainment by readers of the well-regarded travel magazine.

“Engaging customers and service excellence are key priorities for Air Canada. Therefore, we are delighted to receive two top honours, for our Premium Economy class and onboard entertainment, from the discerning readers of Global Traveler, whose extensive travels ideally position them to evaluate our industry. We are pleased they appreciate the hard work and dedication of our employees in providing a superior customer experience and our ongoing investments in our products to ensure we continue to deliver the best in the industry,” said Andrew Yiu, Vice President, Product at Air Canada. 

Premium Economy Cabin

“Congratulations to Air Canada on its duo of wins in this year’s seventh annual Leisure Lifestyle Awards,” said Francis X. Gallagher, publisher and CEO, Global Traveler. “Air Canada’s exceptional service and product are not to be overlooked, and our readers, frequent luxury travelers, know the best of the best. It’s clear with these two wins in this year’s survey that Air Canada is among the elite.”

Global Traveler conducted a survey of its readers between Oct. 1, 2018 and Jan. 31, 2019, with open-ended questions for the best in many categories of leisure, luxury and lifestyle travel. This survey ran in the magazine, as an insert to subscriber copies, as a direct mail questionnaire, online and via email. Only those questionnaires where more than 50 per cent of the questions were completed were counted. Surveys completed by employees of the magazine or individuals associated with the travel industry were not accepted.

The Global Traveler awards are the latest awards to be won by Air Canada, which was rated the Best Airline in North America at the 2018 Skytrax World Airline Awards and remains the only Skytrax Four Star international network carrier in North America. Other recent awards include:

  • The Freddie Awards’ 210 Award for the airline in the Americas whose loyalty program value vote rating was trending higher, recognizing the growing appeal of Aeroplan
  • Skytrax – Best Airline Cabin Cleanliness in North America 2018
  • PAX International Readership Awards – Outstanding Food Service by a Carrier in North America and Best Business Class Amenity Kit in the Americas
  • TripAdvisor Traveller’s Choice Awards – Best Business Class in North America
  • Business Traveler USA – Best North American Airline for International Travel and Best North American Airline for Inflight Experience
  • Frequent Business Traveler GlobeRunner Awards – Best Airline in the Americas and Best Business Class Airport Lounge (both awards shared with Star Alliance partner United Airlines)

Air Canada enters into Exclusive Agreement with Transat A.T. Inc. to pursue a Combination of the two Companies

Provided by Air Canada/CNW

Combination of two Quebec-based travel leaders to benefit all stakeholders; Control of Transat A.T. Inc. to remain in Quebec

  • Purchase of all outstanding Transat A.T. Inc. shares at $13 per share, subject to confirmatory due diligence, regulatory and shareholder approvals and final documentation.
  • Combination of two respected Quebec-based aviation and travel brands to create Montreal-based global leader in leisure, tourism and travel distribution offering Canadians choices to more destinations and promoting two-way tourism. 
  • Made-in-Quebec solution to maintain high-quality head office jobs and key functions in Montreal as well as provide a platform for future growth and employment.

MONTREAL, May 16, 2019 /CNW Telbec/ – Air Canada announced today that it has entered into an exclusive agreement with Transat A.T. Inc. (Transat) regarding the proposed purchase by Air Canada of all issued and outstanding shares of Transat and its combination with Air Canada. The proposed transaction, valued at approximately $520 million or $13.00per share of Transat (on a fully-diluted basis), will create a Montreal-based global travel services company in leisure, tourism and travel distribution operating across Canada and internationally. Air Canada has all the necessary funding required to complete the transaction which is accordingly not subject to financing conditions.

“A combination with Transat represents a great opportunity for stakeholders of both companies.  This includes the shareholders of both Transat and Air Canada, employees of both companies, who will benefit from increased job security and growth prospects, and Canadian travellers, who will benefit from the merged company’s enhanced ability to participate as a leader in the highly competitive leisure travel market globally. The acquisition presents a unique opportunity to compete with the very best in the world when it comes to leisure travel. It will also allow us to further grow our hub at Montréal-Trudeau Airport, where we have added 35 new routes since 2012 to the benefit of the Montreal and Quebec communities, and from which we carried 10 million customers in 2018 alone,” said Calin Rovinescu, President and Chief Executive of Air Canada.

The transaction remains subject to the finalization of definitive agreements, confirmatory due diligence, regulatory and shareholder approvals and other closing conditions usual in this type of transaction. There is no assurance that the transaction will be completed as described in this news release or at all. No further announcements are expected to be made by Air Canada until the signature of the definitive agreements unless required by law. Air Canada has retained Morgan Stanley as its financial advisor.

Air Canada presence and investment in Montreal and the Province of Quebec.

Air Canada is proud to have been named one of Montreal’s top employers for each of the last six years. Headquartered in Montreal since 1949, Air Canada maintains one of the largest global head offices in Quebec. Air Canada employs 36,000 employees globally, with close to 10,000 of those in the province of Quebec where it has created over 2,600 new jobs over the last five years. Air Canada’s Executive Committee members (President and Chief Executive Officer, Chief Financial Officer, Chief Commercial Officer and Executive Vice-President, Operations) in addition to many other key members of the Executive Management team are all based in the Montreal Headquarters.   

Air Canada serves 11 airports across Quebec. The international reach of Air Canada’s network makes Quebec a gateway to the world and is an important tool for economic development, including tourism.

Montréal-Trudeau Airport is a strategic hub for Air Canada connecting its Quebec and Atlantic Canada domestic network, with its U.S. transborder, Caribbean, European, North African, Asian and South American flights. To the U.S. alone, Air Canada connects Montreal-Trudeau to some 24 cities.

Since 2012, Air Canada has launched 35 new routes from Montréal-Trudeau to global markets including Shanghai, Beijing, Tokyo, Tel Aviv, Lima, Sao Paulo, and Casablanca. This growth has allowed Montreal to rank amongst the top 50 most internationally connected cities in the world and to become one of the largest North American hubs. 

Air Canada served more than 10 million passengers in Montreal in 2018. 

Transat AT Inc. announces execution of exclusivity agreement with Air Canada for the acquisition of Transat AT Inc

Provided by Transat A.T. Inc/CNW

MONTREAL, May 16, 2019 /CNW Telbec/ – Transat AT Inc. (“Transat”) announces that it has agreed to a 30-day period of exclusive negotiations with Air Canada pursuant to a letter of intent contemplating a transaction by which Air Canada would acquire all of the shares of Transat at a price of $13.00 per share. During such exclusivity period, it is contemplated that Air Canada will complete its due diligence review and the parties will finalize the negotiation of a definitive agreement regarding this transaction, the material terms of which are announced today.

“This announcement is good news for Transat”, said Jean-Marc Eustache, President and Chief Executive Officer of Transat. “This is an opportunity to team up with a great company that knows and understands our industry and has had undisputable success in the travel business. This represents the best prospect for not only maintaining, but growing over the long term the business and jobs that Transat has been developing in Quebec and elsewhere for more than 30 years.”

Transat would like to point out that its operations continue in the normal course and that there will be no change for its clients, suppliers and employees. In particular, travellers and clients of Transat can continue to travel and book their vacation packages with Transat like before.

Context of the Announcement

The Board of Directors of Transat has agreed to the exclusivity agreement based on a unanimous recommendation from a special committee of independent directors that was charged with examining any proposals for the acquisition of the shares of Transat, with the assistance of financial and legal advisors, and with considering all strategic options, as was announced on April 30, 2019. After being solicited by several parties and having considered available alternatives, the Board of Directors has determined that it is now in the interests of Transat and its stakeholders to finalize negotiations on an exclusive basis with Air Canada with a view to completing the transaction. In its recommendation, the special committee considered many factors, including the interests of the Corporation and its stakeholders, the economic and regulatory environment in which Transat operates, the proposed price of $13.00 per share, which represents a premium of 148.5% over the 20-day weighted average trading price prior to the announcement of April 30, 2019, a premium of 47.8% over the 20-day weighted average trading price for the period ended May 15, 2019, the terms of Air Canada’s proposal, which it deemed reasonable and acceptable taken as a whole, including the duration of the exclusivity period, the disclosure of the main terms of the letter of intent, the covenants of Air Canada and the contemplated terms of the definitive agreements.

Additional Terms of the Letter of Intent

The letter of intent sets forth certain terms that will be required in the definitive agreement. These terms include a break fee of $15 million payable by Transat in case of termination of the transaction, including upon acceptance of an unsolicited superior proposal, and a reverse break fee of a maximum of $40 million payable by Air Canada in the event that the agreement is terminated because regulatory or governmental approvals are not obtained. In addition, the non-solicitation provision will be subject to the usual withdrawal right based on fiduciary duties if an unsolicited proposal is made at a firm price per share that is at least $1.00 higher than the price offered by Air Canada, in the event such proposal is not matched by Air Canada. Moreover, the execution of a definitive agreement by Air Canada will be subject to the execution of support and voting agreements by certain large shareholders of Transat.

Finally, Transat has agreed to limit its undertakings and expenses relating to the implementation of its hotel strategy during the exclusivity period.

Any agreement will also contain numerous conditions customary for this type of transaction, including applicable regulatory approvals and the approval of the shareholders of Transat.

There is no assurance that a definitive agreement will be reached in relation to any transaction following the exclusivity period and the ongoing discussions. No assurance may be given that a transaction will occur in relation to the proposed transaction or otherwise, or regarding the definitive terms of such transaction, if any.

Transport Canada must implement now TSB recommendation on leaving carry-on baggage behind during an emergency

Provided by Canadian Union of Public Employees (CUPE)/CNW

TORONTO, May 15, 2019 /CNW/ – The union representing Air Canada’s flight attendants is asking Transport Canada to implement the now 12 year-old Transportation Safety Board recommendation on leaving carry-on baggage behind during an emergency.

The TSB report recommendation mentioned above (A15H0002) actually referenced an earlier 2007 TSB report (A05H0002) where the recommendation was first made. (It’s in section 4.2.5 if you’re interested.)
Thus, the recommendation is actually 12 years old, not 2 years old.

Correction provided by Transportation Safety Board of Canada

“The recent Aeroflot crash where passengers retrieving their luggage slowed the evacuation of the on-fire aircraft is just another example of the need to strengthen the actual regulation to ensure the safety of passengers and crew,” said the president of the Air Canada Component of the Canadian Union of Public Employees (CUPE), Wesley Lesosky.

In its May 2017 report on the Air Canada Flight 624 that crash-landed in Halifax in March 29, 2015, the Transportation Safety Board recommended that: “The Department of Transport requires that passenger safety briefings include clear direction to leave all carry-on baggage behind during an evacuation.”

Unfortunately, as the Transportation Safety Board noted in its analysis of the response provided by the Department, Transport Canada “plans no regulatory action that would require operators to provide this information to passengers.”

“The federal government cannot wait for another tragedy to happen. Transport Canada must act now. At the time of the Halifax crash, all 132 passengers and 5 crew members made it out safely, but it will not always be the case if the carry-on retrieving issue is not resolved on all Canadian carriers.” noted Lesosky.

Like the US-based Association of Professional Flight Attendants, the Air Canada Component of CUPE is calling on Transport Canada to form a working group on developing solutions to guarantee that carry-on baggage is not a barrier to safety during evacuations.

UK’s Ideagen in project with Canada’s Jazz Aviation to enhance mobile reporting and organisation-wide risk management

Provided by Ideagen

deagen’s Coruson to be rolled out across Jazz’s operations to strengthen the airline’s safety culture

Nottingham, UK – 13 May 2019

Ideagen, the UK-based, global software firm, announced today that it is working with Canada’s largest regional airline, Jazz Aviation, on a project that will enhance mobile reporting and risk management across the carrier’s operations.

Jazz – the largest regional partner to Air Canada, Canada’s flagship airline – will implement Ideagen’s Coruson software as it looks to further strengthen its safety culture through enhanced safety reporting and analysis.

Captain Robert Palmer, Jazz Aviation’s Vice President for Safety, Quality and Environment, said: “The goal of this project is to enhance safety performance through proven risk management techniques as well as ensuring risk mitigations to address the root cause of the issues.  We are pleased to be working with Ideagen in advancing safety management at Jazz with the implementation of Coruson.”

Coruson will become Jazz’s risk management and reporting system allowing airline management to assess risks and mitigate issues before they become safety events.

“Mobile reporting through Coruson will be a significant benefit for our front-line employees. Through this project with Ideagen, we anticipate building on our strong safety culture and believe that mobile reporting will further engage our employees in reporting overall. The simplicity of the Coruson system, ease of access and streamlined reporting, will undoubtedly result in more reports and more safety data,” stated, Captain Palmer.

Steven Cespedes, Ideagen’s Head of Aviation, said: “We are delighted and excited to be working with such an ambitious organisation in the form of Jazz Aviation.

“Our Coruson software is used by some of the largest aviation organisations in the world and we are pleased that such a risk aware airline with an already strong safety culture has chosen to use our software to enhance its safety and risk management processes.”

Ross McLarnon, Product Manager for Ideagen’s Coruson, added: “This is an exciting time for our Coruson software as we continue to see strong demand across the aviation industry.

“We are delighted to be able to add Jazz Aviation – such an ambitious and highly regarded airline particularly across North America – to our ever growing list of aviation clients.

“I am personally looking forward to working with the team at Jazz Aviation and look forward to them providing valuable insights into the use and future development of our Coruson software.”

Air Canada’s new Mother’s Day video will make you want to hug your mom right now

News provided by TravelWeek.com

Air Canada’s new Mother’s Day video will make you want to hug your mom...

Friday, May 10, 2019 | Posted by Travelweek Group

MONTREAL — If you love your mom, you’ll want to watch Air Canada’s latest video.

As part of its #FlyTheFlag platform, which celebrates the values Canadians hold dear, Air Canada has released a new video to commemorate Mother’s Day and celebrate immigrants who came to Canada and raised their families here.

The airline made an open call to the public to share their stories of immigration and their bonds with their home countries. The story of Mary Petrou, who immigrated from Greece in the 1960s in search of a better life, was selected to be the main focus of the campaign.

Knowing it has been about 50 years since Mary’s been back to Greece, Air Canada flew her and her daughter, Tamara, back to her hometown of Vevi for Mother’s Day.

In the video, they’re shown reconnecting with family members who they haven’t seen in five decades, visiting Mary’s childhood home, and sharing home-cooked meals with loved ones.

“The older my mom gets, the more important it is for me to stay close to my culture,” says Tamara. “I want to thank my mom for always being so patient with me, and I’m so grateful for that because it allowed me to always feel safe and always feel loved and cared for.”

Tamara ends the video with this important piece of advice: “Take care your mother, just like our mothers have taken care of us.”

Happy Mother’s Day to all moms out there!

A first in Quebec: 1,200 participants expected to run YQB’s runway

Provided by Aéroport de Québec/CNW

QUÉBEC CITY, May 10, 2019 /CNW Telbec/ – On Saturday, August 24, 2019, Québec City Jean Lesage International Airport (YQB) will be holding the first YQB 5K, where some 1,200 participants will have the chance to run the airport’s main runway. The YQB 5K is a unique opportunity for people in the Québec City area to see the airport from a different angle—one that’s normally not available to the public. This type of race has already proven successful at other Canadian airports, but this will be a first in Quebec. Avjet and Air Canada have partnered with the airport to sponsor the event.

“I’m thrilled with the idea of welcoming more than 1,000 people from the greater Québec City area to our airport. I can’t wait to bring them to the heart of the action, where planes take off and land every day. YQB’s employees and partners are working hard to make this an exciting experience for the runners and everyone who comes to cheer them on. The entire airport community has stepped up to help with this event, which will support two leading local organizations,” stated Stéphane Poirier, President and CEO of YQB.

This promises to be a festive and family-friendly event with a quick course. Participants can take advantage of their trip to the airport to get a behind-the-scenes look at airport operations and see some interesting equipment, including aircraft.

The money raised for this event will go to the Fondation CERVO, which supports mental health research, and Centraide Québec et Chaudière-Appalaches, which supports a large network of community organizations.

Registration opens on May 10, 2019, at 5kmyqb.com. The first 200 participants will receive an early-bird rate.

Date: Saturday, August 24, 2019
Time: 7AM to 12 PM
Location: Québec City Jean Lesage International Airport
5K starting price: $30 early-bird rate (first 200 participants) and $35 normal rate until June 15
1.5K starting price: $10 per child

Thank you to our partners

This unique event is made possible by the help of numerous partners: Avjet, Air Canada, Air Transat, Sunwing, PAL Airlines, Le Soleil and Rouge FM.

Air Canada Receives Final Court Approval to Increase Permitted Foreign Ownership Levels to the Levels Permitted under Canada Transportation Act

Provided by Air Canada/CNW

MONTREAL, May 8, 2019 /CNW Telbec/ – Air Canada (TSX: AC) is pleased to announce that the Quebec Superior Court issued earlier today a final order approving the previously announced plan of arrangement under the Canada Business Corporations Act effecting amendments to Air Canada’s articles of incorporation to align the permitted level of non-Canadian ownership and control of its voting shares within its articles with those prescribed by the new definition of “Canadian” under the Canada Transportation Act (CTA) as amended in June 2018.

Prior to the CTA amendments, no more than 25% of the voting interests of a Canadian air carrier could be owned or controlled by non-Canadians. The Government of Canada’s stated purpose in implementing the CTA amendments is to attract more foreign investment and encourage growth in the aviation sector by increasing, from 25% to 49%, the permitted level of foreign ownership of Canadian air carriers. At the same time, the CTA amendments introduced two new limitations on voting ownership and control, by capping the voting rights of single non-Canadians and of the aggregate of non-Canadian air carriers at 25%.

Air Canada expects that its amended articles will be filed and become effective on or about May 8, 2019. Further details regarding the amendments are set out in the management proxy circular of Air Canada dated March 25, 2019 and in Air Canada’s February 15, 2019 news release which are available on SEDAR under Air Canada’s profile at www.sedar.com.

Chorus Aviation Announces First Quarter 2019 Financial Results

Provided by Chorus Aviation Inc/CNW

Delivering regional aviation to the world

Q1 Financial Highlights and Year-to-Date Accomplishments

  • Net income of $33.4 million, inclusive of an unrealized foreign exchange gain of $16.8 million.
  • Adjusted net income1 of $19.0 million, or $0.13 per basic share.
  • Adjusted EBITDA1 of $74.7 million, a decrease of $2.9 million inclusive of the changes under the amended capacity purchase agreement (‘CPA’) and a $7.7 million quarter-over-quarter increase in stock-based compensation due to the strengthening of the share price.
  • Amended and extended the CPA with Air Canada to 2035.
  • Achieved an unprecedented 17-year collective agreement with Jazz pilots.
  • Completed a $97.26 million equity investment by Air Canada to enable fleet modernization and leasing growth.
  • Entered into a firm purchase agreement with Bombardier for nine CRJ900s.
  • Secured US $300.0 million credit facility to support the growth of the Regional Aircraft Leasing segment.
  • Diversified and grew the Regional Aircraft Leasing fleet to 45 regional aircraft acquired at approximately US $960.0 million inclusive of 10 transactions pending completion*.
  • Re-aligned executive team to support further growth and diversification.

HALIFAX, May 8, 2019 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today announced first quarter 2019 financial results.  

“Our financial performance in the first quarter of 2019 met our expectations with operating income being relatively consistent with the same period in 2018,” stated Joe Randell, President and Chief Executive Officer, Chorus. “In the quarter we generated $74.7 million in adjusted EBITDA and net income of $33.4 million, inclusive of an unrealized foreign exchange gain of $16.8 million.

I’m very pleased with the execution of our growth and diversification strategy, which continues to build on the momentum achieved in 2018. Our strengthened partnership with Air Canada was a pivotal development in our transformation, securing Jazz’s place in the Air Canada Express network for an unprecedented 17 years to the end of 2035. The implementation of the amended CPA is progressing well, and we expect Jazz’s fleet modernization to commence with the delivery of five CRJ900s, leased from Air Canada, beginning in June.

In less than five months we’ve grown our third-party leasing portfolio by 11 aircraft and welcomed SpiceJet as a new customer.  India is one of the fastest-growing air travel markets in the world, and we’re pleased to add this award-winning and growing airline to our portfolio of lessees. Once all pending deliveries have been completed, we’ll have grown our portfolio to 45 aircraft acquired at approximately US $960.0 million with nearly US $745.0 million in future contract lease revenue. When combined with the 47 aircraft leased under the CPA, our fleet of leased aircraft has reached 92* aircraft with a net book value of approximately US $1.6 billion.

We’re maturing and building scale as a worldwide lessor.  Our core business with Air Canada is established for the long term; we’re now focusing more deeply on leveraging our vast expertise in regional operations to secure further growth.  The recent re-alignment of our chief executives places further emphasis on strategic and corporate planning to bolster our lines of business.

We are well positioned for the future. I extend my sincere thanks and gratitude to the Chorus team for these significant accomplishments,” concluded Mr. Randell.

Of the 10 pending transactions as at March 31, 2019, three aircraft were received prior to May 8, 2019.

FIRST QUARTER 2019 SUMMARY

Financial Performance – first quarter 2019 compared to first quarter 2018

In the first quarter of 2019, Chorus reported adjusted EBITDA of $74.7 million a decrease of $2.9 million or 3.7% relative to the first quarter of 2018.

The Regional Aviation Services segment decreased by $9.3 million quarter-over-quarter.  The results of the first quarter of 2019 reflect the 2019 CPA Amendments which reduced the fixed margin and incentive revenue as Chorus moves to market-based compensation rates. These reductions were offset by the implementation of the controllable cost guardrails that mitigated the expected first quarter CPA margin shortfall related to reduced fees.  Beyond the changes related to the amended CPA, the first quarter results were impacted by:

  • increased stock-based compensation of $7.7 million due to the strengthening of the share price;
  • decreased capitalization of major maintenance overhauls on owned CPA aircraft over the previous period; offset by
  • increased aircraft leasing under the CPA.

The decrease in the Regional Aviation Services segment was partially offset by an increase of $6.5 million in the Regional Aircraft Leasing segment related to the growth in aircraft acquired and under lease.

Adjusted net income was $19.0 million for the period, a decrease from 2018 of $7.7 million or 28.6% due to:

  • the $2.9 million decrease in adjusted EBITDA previously described;
  • an increase in depreciation of $3.1 million related to additional aircraft in the regional aircraft leasing segment;
  • an increase in interest costs of $1.9 million related to additional aircraft debt; offset by other of $0.2 million.

Net income was $33.4 million for the period, an increase of $28.2 million over 2018.  The increase was primarily due to the quarter-over-quarter change in unrealized foreign exchange gains on long-term debt of $34.7 million and decreased employee separation program costs of $3.1 million; offset by the previously noted $7.7 million decrease in adjusted net income and one-time signing bonuses of $2.0 million related to changes to the Jazz  pilot collective agreement.