Category: Chorus Aviation

Jazz Aviation Expands Instructor Pathway with Addition of Toronto Airways Inc.

Provided by Chorus Aviation Inc./CNW

HALIFAX, Aug. 21, 2019 /CNW/ – Jazz Aviation LP (“Jazz”), a subsidiary of Chorus Aviation Inc. (‘Chorus’) (TSX: CHR), is pleased to announce that it has signed an agreement with Toronto Airways Inc. (“TAI”) for the carrier to become the twentieth organization in the Jazz Aviation Pathways Program (“Jazz APP”).

“We are very pleased to welcome TAI to the Jazz APP, furthering our commitment to provide a clear pathway for flight instructors across Canada,” said Cal Purves, Director, Flight Operations, Jazz. “TAI has a history of developing and promoting professionalism amongst its instructors and students. We are encouraged by their commitment to this new agreement, which will provide excellent opportunities for flight instructors to expand their careers and forge strong futures for the best and brightest in the aviation industry.”

The Jazz APP will provide potential employment opportunities for qualifying TAI instructors to transition to first officer positions at Jazz, providing a reliable, high quality source of new hire pilots. Jazz continues to work with industry partners, such as TAI, to find ways to promote the profession and establish career pathways for pilots.

“Toronto Airways is proud to be selected for the Jazz Instructor Pathway Program,” said Dave Lorbetskie, Chief Operating Officer, Toronto Airways. “Jazz has supported the aviation training industry for many years. Their progressive approach, and support towards the training of future pilots sets a new industry standard. This agreement provides a clear direction for the future of our Instructors, and a goal for them to work towards.”

Through agreements with 14 colleges and universities, including TAI, and six industry organizations, including TAI, the industry-leading Jazz APP provides yet another career pathway for aviation instructors with this latest agreement.

The Jazz APP / Air Canada connection

Jazz is Air Canada’s largest and longest-serving regional partner and operates approximately 700 flights a day as an integral part of Air Canada’s strategy and North American market presence. Jazz is a proud operator of Air Canada Express service to 81 destinations in Canada and the United States with a fleet of 116 aircraft.

Through Jazz’s agreement with Air Canada, a professional pilot career with Jazz provides a faster track to flying for Air Canada mainline. 60% of Air Canada pilot employment offers must go to Jazz pilots and to-date, over 500 Jazz pilots have transitioned to Air Canada under our Pilot Mobility Program.

Chorus Aviation Announces Second Quarter 2019 Financial Results

Provided by Chorus Aviation Inc/CNW

Regional aircraft leasing portfolio reaches 56 aircraft 
Delivering regional aviation to the world

Q2 Financial Highlights and Year-to-Date Accomplishments

  • Net income of $38.9 million, or $0.25 per basic share, inclusive of an unrealized foreign exchange gain of $16.1 million, an increase of $22.6 million.
  • Adjusted net income1 of $24.7 million, or $0.19 per basic share, a decrease of $4.9 million.
  • Adjusted EBITDA1 of $85.7 million, an increase of $1.6 million.
  • Regional Aircraft Leasing fleet commitments grew to 56* aircraft valued at US $1.1 billion with future contracted leasing revenue of approximately US $815.0 million.

HALIFAX, Aug. 13, 2019 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today announced second quarter 2019 financial results and provided an update on the progress of its regional aircraft leasing business.  

“I’m immensely pleased with our performance in the second quarter and particularly with the traction we’re gaining in the regional aircraft leasing space, having announced commitments on 11 additional aircraft in the period. Since the launch of Chorus Aviation Capital in early 2017, we have built our portfolio to an impressive 56 aircraft,13 of which we expect will deliver in the third quarter, two in the fourth quarter with the remaining aircraft by the end of 2020.  When combined with the aircraft lease commitments under the CPA, our fleet of leased aircraft reaches a value of over US $2.0** billion with US $2.0** billion in future contracted lease revenue,” said Joe Randell, President and Chief Executive Officer, Chorus.

“We had earlier communicated our intention to commit our leasing growth capital by early 2020 and I am pleased to report we have delivered on this milestone almost a full year in advance – a strong indicator of the opportunities that exist in this sector.  Since the launch of the business, we have grown the regional aircraft leasing segment by an average of approximately 20 aircraft per year.  In the near term, we have the capacity to continue with a similar rate of growth through a combination of additional debt and internally generated cash flows to fund the equity portion of the aircraft acquisitions.”

“We are committed to creating additional value for our stakeholders and are well positioned for the future.  I extend my sincere thanks to the Chorus team for another solid quarter,” concluded Mr. Randell.

Of the 16 pending Regional Aircraft Leasing transactions, eight aircraft were received prior to August 12, 2019. Future Regional Aviation Services commitments include nine CRJ900s to be received in 2020 and 10 ESPs that are planned for completion between 2019 and 2022.
**The estimates are based on agreed lease rates in the CPA and certain assumptions and estimates for future market lease rates related to new and extended leases under the CPA as at January 1, 2019. A foreign exchange rate of $1.2600 (based on the long-term average historical rate) was used in the calculation of the estimates.

SECOND QUARTER 2019 SUMMARY

In the second quarter, Chorus reported adjusted EBITDA of $85.7 million, an increase of $1.6 million or 1.9% relative to the second quarter of 2018.

The Regional Aircraft Leasing segment’s adjusted EBITDA increased by $10.4 million due to the growth in aircraft earning leasing revenue.

The Regional Aviation Services segment’s adjusted EBITDA decreased $8.8 million; offsetting the previously described increase. The Regional Aviation Services segment results are as expected and reflect the 2019 amendments to the Capacity Purchase Agreement (‘CPA’), which reduced the Fixed Margin and Performance Incentive revenue when Chorus moved to market-based compensation rates earlier than originally planned. These reductions were partially offset by the implementation of the Controllable Cost Guardrail that mitigated the expected second quarter CPA margin shortfall related to reduced fees.  Beyond the changes related to the amended CPA, the second quarter results were impacted by:

  • increased stock-based compensation of $3.5 million due to the strengthening of the Share price; offset by
  • increased aircraft leasing under the CPA; and
  • increased capitalization of major maintenance overhauls on owned CPA aircraft over the previous period.

Adjusted net income was $24.7 million for the quarter, a decrease from 2018 of $4.9 million or 16.5% due to:

  • an increase in depreciation of $4.2 million primarily related to additional aircraft in the Regional Aircraft Leasing segment;
  • an increase in interest costs of $4.5 million primarily related to additional aircraft debt in the Regional Aircraft Leasing segment; and
  • an increase in other costs of $2.2 million related to foreign exchange losses on working capital; offset by a gain on disposal of property and equipment; offset by
  • the $1.6 million increase in adjusted EBITDA previously described; and
  • a $4.4 million decrease in income tax expense related to lower adjusted EBT.

Net income was $38.9 million, an increase of $22.6 million over the 2018 period. The increase was primarily due to the quarter-over-quarter change in unrealized foreign exchange gains on long-term debt of $28.7 million; offset by the previously noted $4.9 million decrease in adjusted net income and increased employee separation program costs of $1.2 million.

Year-to-date Summary

Chorus reported adjusted EBITDA of $160.4 million, a decrease of $1.2 million over the 2018 period.

The Regional Aviation Leasing segment’s adjusted EBITDA increased by $16.9 million due to the growth in aircraft earning leasing revenue.

The Regional Aviation Services Segment’s adjusted EBITDA decreased by $18.1 million; offsetting the previously described increase. The Regional Aviation Services segment’s results are as expected and reflect the 2019 amendments to the CPA which reduced the Fixed Margin and Performance Incentive revenue when Chorus moved to market-based compensation rates earlier than originally planned. These reductions were offset by the implementation of the Controllable Cost Guardrail that mitigated the expected CPA margin shortfall related to reduced fees.  Beyond the changes related to the amended CPA, the year-to-date results were impacted by:

  • increased stock-based compensation of $11.1 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.

Year-to-date adjusted net income was $43.7 million, a decrease from 2018 of $12.5 million or 22.2% due to the $1.2 million decrease in adjusted EBITDA previously described and:

  • an increase in depreciation of $7.3 million primarily related to additional aircraft in the Regional Aircraft Leasing segment;
  • an increase in interest costs of $6.4 million primarily related to additional aircraft debt in the Regional Aircraft Leasing segment; and
  • an increase in other of $2.9 million related to foreign exchange losses on working capital; offset by a gain on disposal of property and equipment; offset by
  • a decrease in income tax expense of $5.3 million related to lower adjusted EBT.

Year-to-date net income was $72.4 million, an increase of $50.8 million over the 2018 period. The increase was primarily due to the period-over-period change in unrealized foreign exchange gains on long-term debt of $63.4 million and decreased employee separation program costs of $1.9 million; offset by the previously noted $12.5 million decrease in adjusted net income and one-time signing bonuses of $2.0 million related to the Jazz pilot collective agreement.

2019 OUTLOOK

(See cautionary statement regarding forward-looking information below)

On February 4, 2019, the 2019 CPA amendments became effective on a retroactive basis to January 1, 2019. Further information concerning the 2019 CPA amendments and Air Canada’s investment in Chorus is contained in Chorus’ Material Change Reports dated January 24, 2019 and February 13, 2019, which are available on SEDAR at www.sedar.com. The 2019 CPA amendments resulted in a near-term reduction in fixed fees starting in 2019, as Chorus accelerated its transition to market-based rates.  The reduction was implemented by eliminating the Infrastructure Fee per Covered Aircraft and the Fixed Margin per Covered Aircraft which were replaced with a single Fixed Margin. As a result, fixed fee revenue in each of 2019 and 2020 is anticipated to be $75.5 million per year as compared to $111.3 million in 2018. In addition, the maximum future available Performance Incentives reduce from $23.4 million in 2019 and 2020 to an annual average maximum available amount of $3.4 million for the full term of the CPA. The near-term reductions are more than offset over the term of the CPA by incremental contracted revenue secured with the extension of the agreement including fixed fees and aircraft leasing. Aircraft leasing revenue under the CPA, which is included in the Regional Aviation Services segment, is expected to grow with the delivery of nine CRJ900s in 2020 and 10 ESPs to be completed between 2019 and 2022.

Capital expenditures for 2019, including capitalized major maintenance overhauls but excluding expenditures for the acquisition of aircraft and the ESP, are expected to be between $38.0 million and $44.0 million. Aircraft related acquisitions and the ESP capital expenditures in 2019 are expected to be between $630.0 million and $640.0 million. This excludes any potential additional investments in third-party aircraft beyond what has been announced to date. As a result of the fleet changes associated with the 2019 CPA Amendments and the loss of a Dash 8-300 in the second quarter due to ground damage, the eight ESPs planned for 2019 has reduced to four and the remaining six ESPs will be completed by 2022.  As a result, the total number of ESPs has been reduced from 19 to 18 Dash 8-300s.  The insurance proceeds from the damaged Dash 8-300 aircraft will be pledged as security for the Debentures in place of that aircraft.

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Jazz Aviation’s Captain Nick Seemel honoured with ALPA’s Air Safety Award

Provided by Chorus Aviation Inc./CNW

HALIFAX, July 18, 2019 /CNW/ – Jazz Aviation LP (‘Jazz’), a subsidiary of Chorus Aviation Inc. (‘Chorus’) (TSX: CHR), is proud to announce that the Air Line Pilots Association, Int’l (‘ALPA’) presented Captain Nick Seemel with its prestigious Air Safety Award for his outstanding leadership in aviation safety. Captain Seemel was honoured with this award at ALPA’s 65th Air Safety Forum held today in Washington, D.C.

A Jazz Aviation pilot for more than 30 years, Captain Seemel is a leader whose work to enhance safety in Canadian aviation has earned him the respect of his fellow pilots and airline management.

“Captain Seemel has devoted his career to improving aviation safety and his hard work has made Jazz a better place for all employees,” said Captain Steve Linthwaite, Vice President – Flight Operations at Jazz. “We thank him for his unwavering commitment to safety and congratulate him on this well-deserved recognition.”

In his role as the Air Safety Coordinator for ALPA Canada, he leads a team of pilot volunteers whose focus is to ensure the highest standards of aviation safety. A strong advocate for safety reporting programs, he assisted in instructing ALPA pilots on the implementation of safety management systems, the non-punitive safety reporting process that has contributed to greatly advance aviation safety in North America.

“Captain Seemel is a dedicated Jazz employee who demonstrates collaboration, teamwork and the pursuit of safety excellence which has benefited us all and will continue to drive our safety culture for years to come,” said Captain Bob Palmer, Vice President – Safety, Quality and Environment at Jazz. “It is an honour to work closely with such a committed safety representative.”

Captain Seemel is a line training captain at Jazz Aviation. He continues to share his world-leading expertise on safety management systems as a member of the International Civil Aviation Organization’s Safety Management Panel, which is currently reviewing and amending international standards.

The ALPA Air Safety Award is presented yearly to recognize outstanding contributions by ALPA members in the field of air safety. ALPA is the world’s largest pilot union, representing more than 62,000 pilots at 35 airlines in Canada and the United States.

Chorus Aviation announces a sale-leaseback transaction with IndiGo, for six new ATR72-600 aircraft

Provided by Chorus Aviation Inc/CNW

Third-party leased aircraft fleet commitments reach US $1.1 billion

Delivering regional aviation to the world

HALIFAX, June 13, 2019 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) announced today that Chorus Aviation Capital (‘CAC’) has entered into agreements to deliver six new ATR72-600 aircraft to InterGlobe Aviation Limited (‘IndiGo’) of India under a sale and leaseback transaction. Deliveries are anticipated in the second and third quarters of 2019.

“We are delighted to welcome IndiGo, as our 14th lease customer,” said Steve Ridolfi, President, Chorus Aviation Capital. “The Indian aviation market is vibrant and dynamic with regional air transportation expanding rapidly to connect previously unserved communities. IndiGo is perfectly positioned to capitalize on this exciting growth. This is Chorus Aviation Capital’s second leasing transaction this year in India, one of the world’s fastest growing aviation markets.”

“We’re maturing and building scale as a worldwide regional aircraft lessor through the addition of yet another well-established lessee,” commented Joe Randell, President and Chief Executive Officer, Chorus. “This latest transaction expands Chorus Aviation Capital’s leasing portfolio to 561 aircraft worth some US $1.1 billion and with US $830.0 millionin future contracted lease revenue.”

Upon the completion of this transaction, CAC’s announced portfolio commitments include 44 turboprops and 12 regional jets. When combined with the 47 aircraft leased under the Capacity Purchase Agreement with Air Canada, Chorus’ fleet of leased aircraft comprises 103 aircraft valued at approximately US $1.7 billion.

Chorus Aviation Announces Leasing Transaction for Five Q400s to Flybe and Reaches 50 Aircraft Portfolio Milestone

Provided by Chorus Aviation Inc/CNW

Delivering regional aviation to the world

HALIFAX, May 21, 2019 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) announced today that Chorus Aviation Capital (‘CAC’) has entered into a purchase agreement to acquire five, mid-life Bombardier Q400 aircraft currently on lease with Europe’s largest independent regional airline, Flybe. This transaction is expected to close by this summer and is subject to customary conditions precedent to closing, such as the novation of the existing leases, as well as the receipt of all regulatory approvals or consents required in connection with the acquisition of Flybe by Connect Airways Limited. With these acquisitions, Chorus Aviation Capital has announced 50 commitments to date for its regional aircraft leasing business.

“We are very pleased to expand our relationship with our existing customer, Flybe,” said Steve Ridolfi, President, Chorus Aviation Capital. “In less than two years we’ve grown our leasing portfolio to 50 aircraft acquired at approximately US $995.0 million with US $765.0 million in future contract lease revenue.”

In addition to growing CAC’s lease portfolio, these mid-life aircraft play to the Chorus group’s strengths as a diversified provider of regional aviation services,” commented Joe Randell, President and Chief Executive Officer, Chorus.  “At the end of the lease term, Chorus will have multiple potential uses for these aircraft, including lease extensions, re-leases or sale to new operators, conversions to non-passenger use, or disassembly for parts sales. I applaud the Chorus team for reaching this important milestone and for embracing our vision to become a worldwide provider of integrated regional aviation services.”

Upon the completion of this transaction, and seven other aircraft pending delivery to other customers, CAC’s portfolio will include 38 turboprops and 12 regional jets placed with 13 airlines on six continents. When combined with the 47 aircraft leased under the Capacity Purchase Agreement with Air Canada, Chorus’ fleet of leased aircraft has reached 97 aircraft valued at approximately US $1.6 billion.

Chorus Aviation Receives Court Approval to increase Permitted Foreign Ownership Levels to the Levels Permitted under the Canada Transportation Act

Provided by Chorus Aviation Inc/CNW

HALIFAX, May 13, 2019 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) is pleased to announce that the Ontario Superior Court of Justice (Commercial List) issued earlier today a final order approving the previously announced plan of arrangement under the Canada Business Corporations Act effecting amendments to Chorus Aviation’s articles of incorporation and by-laws 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%.

Chorus expects that its amended articles will be filed and become effective on or about May 13, 2019. Further details regarding the amendments are set out in the management proxy circular of Chorus dated March 22, 2019 and in Chorus’s February 19, 2019 news release which are available on SEDAR under Chorus’s profile at www.sedar.com.

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.”

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.

Chorus Aviation Announces Leasing Transaction with SpiceJet of India

Provided by Chorus Aviation Inc/CNW

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.

Chorus Aviation Completes Acquisition of Six Regional Aircraft

Provided by Chorus Aviation Inc/CNW

Delivering regional aviation to the world

HALIFAX, April 1, 2019 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) announced today the completion of a portfolio transaction between Chorus Aviation Capital and Elix Aviation Capital for six regional aircraft. The transaction had previously been announced on February 21, 2019.

The portfolio of six aircraft consists of two ATR72-600 aircraft on lease to Azul Airlines of Brazil, two Q400 aircraft on lease to Ethiopian Airlines, and two Q400 aircraft on lease to Jambojet of Kenya.

With these acquisitions, Chorus Aviation Capital’s portfolio of leased regional aircraft (inclusive of five transactions pending completion) has reached 40 aircraft, comprising 28 turboprops and 12 regional jets valued at approximately US $860 million.