HALIFAX, Nov. 7, 2019 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) is proud to announce that Joseph (Joe) Randell, President and Chief Executive Officer of Chorus, will be inducted into Canada’s Aviation Hall of Fame in 2020. The 47th annual gala induction dinner and ceremonies will be held on June 4, 2020 in Calgary, Alberta.
Mr. Randell will be recognized for his outstanding contribution to Canadian aviation. As a founder of Air Nova, his vision and entrepreneurial spirit led to the growth and diversification of Chorus Aviation to become a billion-dollar corporation that provides a full suite of regional aviation services to customers around the world.
“Joe is a visionary who has helped shape the landscape of the airline industry in Canada during very tumultuous times and he continues to challenge the status quo,” said Richard McCoy, Chairman of the Board of Directors, Chorus. “On behalf of all Chorus board members, I sincerely congratulate Joe on this well-deserved recognition and wish him continued success.”
The 2020 inductions will bring to 242 the number of Canadians who have been installed as members of the Aviation Hall of Fame. In addition, 24 organizations will have been honored for their contributions by receiving the Belt of Orion Award of Excellence.
HALIFAX, Oct. 23, 2019 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) is proud to announce that subsidiary Jazz Aviation LP (‘Jazz’) was named among Canada’s Safest Employers 2019 taking gold in the Transportation category. Canada’s Safest Employers awards were announced at a gala event in Toronto, ON last evening.
“Safety is the core of our culture and we’re very proud that Jazz continues to be recognized for our work in this area,” said Randolph deGooyer, President, Jazz. “We hold ourselves accountable and achieve success by making safety a daily practice at all levels of the organization.”
At Jazz, safety is our top priority and we continue to challenge ourselves to further improve safety. One recent example is the launch of an app-based safety reporting system to empower individual employees with easy access to safety reporting and transparency with the reporting process.
This is Jazz’s third consecutive year accepting awards at the Canada’s Safest Employers event. In 2018, Jazz was awarded silver in the Transportation and Psychological Safety categories; and in 2017, Jazz won gold in the Transportation category.
“Jazz continues to lead in development of advanced safety management and strengthen our role as a leader in aviation safety,” said Bob Palmer, Vice President of Safety, Quality and Environment, Jazz.
Launched in 2011, Canada’s Safest Employers awards recognize companies from across Canada with outstanding accomplishments in promoting the health and safety of their employees. Companies are evaluated on a wide range of occupational safety and health (‘OSH’) elements, including employee training, OSH management systems, incident investigation, emergency preparedness and innovative health and safety initiatives.
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.com
Jazz Aviation LP has a strong history in Canadian aviation with its roots going back to the 1930s. Jazz is owned by Chorus Aviation Inc. (TSX: CHR). Chorus’ vision is to deliver regional aviation to the world.
As the largest regional carrier in Canada, Jazz has a proven track record of industry leadership and exceptional customer service, and has leveraged that strength to deliver value to all its stakeholders. Jazz operates more flights and flies to more Canadian destinations than any other airline, and has a workforce of approximately 5,000 professionals, highly experienced in the challenging and complex nature of regional operations.
There are three divisions operated by Jazz Aviation LP: Air Canada Express, Jazz Technical Services and Jazz.
Air Canada Express: Under a capacity purchase agreement with Air Canada, using the Air Canada Express brand, Jazz provides service to a variety of markets throughout North America, with a fleet of 116 Canadian-made Bombardier aircraft.
Jazz Technical Services: Established in May 2016 as a separate division, Jazz Technical Services (‘JTS’) is dedicated to heavy maintenance, repair and overhaul (MRO) of Bombardier, De Havilland and Embraer aircraft.
Jazz: Under the Jazz brand, the airline offers charters throughout North America for corporate clients, governments, special interest groups and individuals seeking more convenience. Jazz also has the ability to offer airline operators services such as ground handling, dispatching, flight load planning, training and consulting.
HALIFAX, Oct. 7, 2019 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) announced today that Chorus Aviation Capital (‘CAC’) has acquired two ATR72-600 aircraft (MSNs 1147, 1154) on lease to Malindo Air, a Malaysian operator forming part of the Lion Air Group. Earlier this year, CAC also delivered two new ATR 72-600 aircraft (MSNs 1577 and 1579) for lease to Malindo Air, bringing the total number of aircraft leased by CAC to the Lion Air Group to five. With these acquisitions, Chorus Aviation Capital has announced 581 commitments to date for its regional aircraft leasing business.
“We are delighted to expand our relationship with Malindo Air and the Lion Air Group in the fast-growing and increasingly significant Southeast Asian market,” said Steve Ridolfi, President, Chorus Aviation Capital. “So far this year, we’ve secured lease commitments for 24 aircraft and continue to evaluate several additional opportunities. To date, we’ve grown the value of our leasing portfolio to approximately US $1.1 billion with US $815.0 million in future contract lease revenue.”
“This solid growth trajectory has led to a very strong portfolio of brand name regional airlines with aircraft type and geographic diversity. 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,” commented Joe Randell, President and Chief Executive Officer, Chorus.
Upon the completion of this transaction, and four pending aircraft deliveries to other customers, CAC’s portfolio will include 46 turboprops and 12 regional jets. When the aircraft earning leasing revenue under the Capacity Purchase Agreement are added to the aircraft in CAC’s portfolio, Chorus’ total leased portfolio grows to 124 aircraft valued at approximately US $2.0 billion.
HALIFAX, Sept. 20, 2019 /CNW/ – Jazz Aviation LP (‘Jazz’), a subsidiary of Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) announced today the launch of a new program which provides a direct career path to flight attendant positions at Jazz for qualified candidates. The new program, called the Jazz Aviation Pathways Program for Flight Attendants, follows in the footsteps of Jazz’s successful Jazz Aviation Pathways Program for Pilots.
Jazz also announced that it has signed an agreement with The Georgian College of Applied Arts and Technology for the college to become the first organization to join the Jazz Aviation Pathways Program for Flight Attendants. The partnership was celebrated today at an event held at Georgian College in Barrie, Ontario. Graduates from Georgian College’s Flight Services Program are eligible for referral to flight attendant positions at Jazz after graduation and upon meeting eligibility requirements.
“We are extremely pleased to launch our new Jazz Aviation Pathways Program for Flight Attendants and to welcome Georgian College to our program,” said Rhonda Bishop, Jazz’s Director, Inflight and Onboard Product. “Working together to provide a career path for students interested in aviation, and specifically to flight attendant positions, is positive for the students, the college and for Jazz. We are excited to begin what we know will be a mutually beneficial working relationship.”
“Innovative industry partnerships like this one with Jazz have led to Georgian exceeding the provincial average for graduate employment for more than 20 years,” said Maher Ghalayini, Dean of Business and Management, Hospitality, Tourism and Recreation. “With this partnership, Jazz will be setting our graduates on the fast-track to success as they launch their careers in aviation.”
The program will commence with Georgian College students registered in the Flight Services Program this 2019/2020 year. Students who successfully complete this one-year program, and meet eligibility requirements, will interview with Jazz Aviation for open flight attendant positions. Jazz operates approximately 670 daily flights across Canada and the United States on behalf of Air Canada under the Air Canada Express brand, with a fleet of 116 aircraft.
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.
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.
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.
(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.
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.
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.
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.
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.