Category: Chorus Aviation

Chorus Aviation Announces Fourth Quarter and Year-End 2019 Financial Results

Provided by Chorus Aviation Inc/CNW

A year of outstanding accomplishments

Q4 2019 Financial Highlights and Accomplishments

  • Net income of $36.6 million, or $0.23 per basic share, a period-over-period increase of $34.4 million.
  • Adjusted net income1 of $23.3 million, or $0.15 per basic share, a decrease of $12.0 million due to expected reductions resulting from the 2019 amendments to the Capacity Purchase Agreement (‘CPA’) (the ‘2019 CPA Amendments’) offset by growth in the Regional Aircraft Leasing segment.
  • Adjusted EBITDA1 of $88.6 million, a decrease of $3.4 million.
  • Increased the committed leased fleet to 64 aircraft, representing growth of 60% year-over-year.
  • Added new aircraft type through a sale leaseback transaction with airBaltic for five new Airbus A220-300s.
  • Added Croatia Airlines as a new airline customer to the leasing portfolio.
  • Extended three aircraft lease agreements with Aeromexico Connect and completed an additional sale leaseback transaction with IndiGo for two new aircraft.
  • Completed the Extended Service Program (‘ESP’) on three additional Dash 8-300s, bringing the total number of ESP aircraft generating leasing revenue under the CPA to 13.
  • Established a regional aircraft parts depot in Dubai, UAE, enhancing Chorus’ ability to market its parts provisioning and sales offering internationally.

Full-Year 2019 Financial Highlights and Accomplishments

  • Net income of $133.2 million, or $0.85 per basic share, a period-over-period increase of $65.7 million.
  • Adjusted net income1 of $96.2 million, or $0.61 per basic share, a decrease of $26.1 million due to expected reductions resulting from the 2019 CPA Amendments offset by growth in the Regional Aircraft Leasing segment.
  • Adjusted EBITDA1 of $341.7 million, an increase of $1.2 million.
  • Increased adjusted EBT1 in the Regional Aircraft Leasing segment to 22% of overall adjusted EBT.
  • Amended and extended the CPA with Air Canada to December 31, 2035.
  • Jazz pilots ratified their collective agreement with no strike or lockout provisions for the extended term of the CPA.
  • Completed Air Canada investment for gross proceeds of $97.26 million and raised gross proceeds of $86.3 million through a public offering of 5.75% Unsecured Debentures to support the growth of Chorus.
  • Executed a purchase agreement for nine CRJ900s that will earn leasing revenue under the CPA starting in 2020.
  • Completed the first sale of three leased Dash 8-400s, generating net proceeds, after debt repayment, of US $25.0 million for reinvestment in the Regional Aircraft Leasing segment.
  • Received numerous awards as a top employer in Canada, and named among Canada’s Safest Employers 2019, taking gold in the Transportation category.

HALIFAX, Feb. 12, 2020 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today announced fourth quarter and year-end 2019 financial results.

“2019 was a transformative year for Chorus creating significant value for all of our stakeholders. On total revenues of $1.4 billion, we generated adjusted EBITDA of $341.7 million.

We secured and strengthened our partnership with Air Canada by amending and extending the CPA for a further 17 years, providing a minimum of $2.5 billion in contracted revenues with opportunities to increase further. This was a critical accomplishment as it laid a strong, long-term foundation from which we continue to build and diversify our company. Air Canada’s $97.26 million investment in Chorus equity, which included a five-year hold period, further aligns our organizations and is a strong endorsement of our growth and diversification strategy.

Our group of companies performed very well, and most importantly, did so safely and with operational integrity. We carried just under 11 million passengers under the Air Canada Express brand, secured new contracted flying missions in several international markets, and established an aircraft parts depot in Dubai. 

We made significant advancements in maturing our business to become a worldwide provider of regional aviation solutions. We successfully raised $183.5 million in capital and secured a US $300 million warehouse facility to support our expansion in regional aircraft leasing. We now have a committed portfolio of 64 aircraft, a 60% increase over 2018, placed with 16 customers. We’re pleased with the returns we’re generating in our leasing business, which is delivering strong and consistent margins. Together with the aircraft we have leased under the CPA our committed portfolio comprises 1352,3 aircraft with approximately US $2.1 billion2,3,4 in future contracted lease revenue, making Chorus one of the world’s largest regional aircraft lessors. 

We remain confident that we can expand our leasing portfolio by up to 20 aircraft per year funded through a combination of debt and cash from operations. The timing of these future transactions will not occur on a consistent basis; however, we expect the majority will be executed in the second half of this year. The expected growth in aircraft leasing will more than offset planned fixed fee reductions in the CPA in 2020 and beyond.

I extend my thanks and gratitude to the Chorus team for making 2019 a standout year in our history, and I look forward to the many new, exciting milestones we’ll achieve together,” stated Joe Randell, President and Chief Executive Officer, Chorus.

Fourth Quarter Summary

In the fourth quarter of 2019, Chorus reported adjusted EBITDA of $88.6 million, a decrease of $3.4 million or 3.7% relative to the fourth quarter of 2018.

The Regional Aircraft Leasing segment’s adjusted EBITDA increased by $12.3 million primarily related to the growth in aircraft earning leasing revenue. The sale of three Dash 8-400s resulted in net cash proceeds of US $25.0 million and produced a strong internal rate of return since the acquisition of these aircraft. This disposal also produced an accounting loss related to the wind-up of the special purpose entities that lowered adjusted EBITDA and adjusted net income by $3.4 million and $1.3 million, respectively.

In line with expectations, the Regional Aviation Services segment’s adjusted EBITDA decreased $15.8 million. The decrease reflects the 2019 CPA Amendments which reduced the Fixed Margin and Performance Incentive revenue when Chorus moved to market-based compensation rates. Beyond the changes related to the 2019 CPA amendments, fourth quarter results were impacted by:

  • increased stock-based compensation of $6.0 million due to the change in the share price inclusive of the reduction related to the change in fair value of the Total Return Swap which was implemented in the fourth quarter of 2019: and
  • decreased capitalization of major maintenance overhauls on owned CPA aircraft over the previous period of $1.2 million.

Adjusted net income was $23.3 million for the quarter, a decrease of $12.0 million due to:

  • the $3.4 million decrease in adjusted EBITDA previously described;
  • an increase in depreciation of $6.6 million primarily related to additional aircraft in the Regional Aircraft Leasing segment;
  • an increase in net interest costs of $5.3 million primarily related to additional aircraft debt in the Regional Aircraft Leasing segment; and
  • an increase in non-operating costs of $2.5 million primarily related to the loss on disposal of an engine of $1.2 million and a change in foreign exchange losses of $0.8 million; offset by
  • a $5.7 million decrease in income tax expense resulting from lower adjusted EBT.

Net income increased $34.3 million primarily due to the change in net unrealized foreign exchange gains on long-term debt of $46.2 million offset by the previously noted $12.0 million decrease in adjusted net income.

Year-End Summary

Chorus reported adjusted EBITDA of $341.7 million for 2019, an increase of $1.2 million over 2018.

The Regional Aircraft Leasing segment’s adjusted EBITDA increased by $42.4 million was primarily due to the growth in aircraft earning leasing revenue.

In line with expectations, the Regional Aviation Services segment’s adjusted EBITDA decreased by $41.3 million, which reflect the 2019 CPA Amendments which reduced the Fixed Margin and Performance Incentive revenue when Chorus moved to market-based compensation rates. These reductions were partially offset by the implementation of the Controllable Cost Guardrail that mitigated the expected CPA margin shortfall resulting from reduced fees. Beyond the changes related to the 2019 CPA Amendments, 2019 results were impacted by:

  • increased stock-based compensation of $15.0 million due to the change in the share price inclusive of the reduction related to the change in fair value of the Total Return Swap which was implemented in the fourth quarter of 2019;
  • decreased capitalization of major maintenance overhauls on owned CPA aircraft of $1.9 million over the previous period; offset by
  • increased aircraft leasing under the CPA.

Adjusted net income of $96.2 million, decreased over 2018 by $26.1 million due to:

  • an increase in depreciation of $18.5 million primarily related to additional aircraft in the Regional Aircraft Leasing segment;
  • an increase in net interest costs of $15.5 million primarily related to additional aircraft debt in the Regional Aircraft Leasing segment; and
  • an increase in non-operating costs of $5.6 million primarily related to foreign exchange losses of $4.2 million in addition to a loss on disposal of property and equipment of $0.5 million; partially offset by
  • the $1.2 million increase in adjusted EBITDA previously described; and
  • a decrease in income tax expense of $12.2 million resulting from lower adjusted EBT.

Net income increased $65.7 million over 2018 due to the change in net unrealized foreign exchange gains on long-term debt of $90.8 million and decreased employee separation program costs of $3.1 million; offset by the previously noted decrease of $26.1 million in adjusted net income and increased signing bonuses of $2.0 million related to the Jazz pilot collective agreement.

Outlook

(See cautionary statement regarding forward-looking information below)

The 2019 CPA Amendments became effective on a retroactive basis to January 1, 2019. Further information concerning the 2019 CPA Amendments and the Air Canada Investment is contained in the 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 reduction in fixed fees starting on January 1, 2019, as Chorus moved to market-based rates under the CPA. The reduction was implemented by eliminating the Infrastructure Fee per Covered Aircraft and the Fixed Margin per Covered Aircraft (as this term was defined in the CPA) which were replaced with a single Fixed Margin. As a result, fixed fee revenue in each of 2019 and 2020 is anticipated to be $75.2 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 committed CRJ900s in 2020, three ESPs to be completed in 2020 and two remaining ESPs by 2022. The Regional Aircraft Leasing segment’s future revenue is expected to grow in 2020 and at a minimum Chorus will have 60 aircraft equivalent earning revenue during the year versus 43 in 2019.

With the addition of the aircraft under both the Regional Aircraft Leasing segment and the aircraft leasing revenue under the CPA, Chorus’ estimated future contracted lease revenue is approximately US $2.1 billion4. When the CPA fixed margin revenue of US $0.6 billion is included with the total future contracted revenue, Chorus’ future revenue approximates US $2.7 billion4. (see footnote 4 in the following table)

Capital expenditures in 2020, 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 2020 are expected to be between $442.0 million and $452.0 million.

Capitalized terms used but not defined in the Outlook section have the meanings given to them in Management’s Discussion and Analysis (the ‘MD&A’) dated February 12, 2020, which is available on Chorus’ website (www.chorusaviation.com) and SEDAR (www.sedar.com).

The following table provides the number of closed and pending transactions announced to-date:

(expressed in millions of US dollars, except number of aircraft)

Customer2016 –
Q3 2019
 IncreaseTotal 2016 –
2019(2)
Aeromexico33
Air Nostrum44
airBaltic55
Azul Airlines55
CityJet22
Croatia Airlines22
Ethiopian Airlines55
Falcon
Flybe88
Indigo628
Jambojet44
KLM Cityhopper11
Malindo Air(3)44
Philippine Airlines33
SpiceJet55
Virgin Australia33
Wings Air(3)22
Total Regional Aircraft Leasing55964
Deal value US$1,335.0
Future Lease Revenues US(4)$960.0
Total Regional Aviation Services7171
Future Lease Revenues US(4)(5)$1,180.0
Chorus Total Aircraft1269135
Future Lease Revenues US(4)$2,140.0

Jazz Aviation Named as One of Nova Scotia's Top Employers for the Ninth Consecutive Year

Provided by Chorus Aviation Inc/CNW

HALIFAX, Jan. 20, 2020 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) announced that its subsidiary Jazz Aviation LP (‘Jazz’) has been selected as one of Nova Scotia’s Top Employers by MediaCorp Canada Inc.

“Jazz is proud to be headquartered in Nova Scotia and we believe in creating opportunities in this region by providing a workplace where employees have the skills and support, they need to succeed,” said Randolph deGooyer, President, Jazz. “We are honored to receive recognition from MediaCorp for the ninth time.”

Nova Scotia’s Top Employers is an annual competition that recognizes employers leading their industries in offering exceptional workplaces. MediaCorp’s evaluation of the various candidates is based on the same eight criteria as the national competition: physical workplace; work and social atmosphere; health, financial and family benefits; vacation and time off; employee communications; performance management; training and skills development; and community involvement.

Jazz’s commitment to its employees through formal mentoring, in-house training, and tuition subsidies for courses related to their position, summer student jobs, paid internships, co-op placements and apprenticeships are only a few of the programs that allowed the organization to be recognized for the ninth year in a row.

Chorus Aviation Capital adds 34 aircraft on-lease in a record 2019

Provided by Chorus Aviation Inc/CNW

Concludes year with additional leases to Croatia Airlines and IndiGo, and lease extensions to Aeromexico Connect

Third-party committed leased fleet has now reached 641 aircraft

HALIFAX, Jan. 13, 2020 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) announced today that Chorus Aviation Capital (‘CAC’) added a total of 34 aircraft on-lease in 2019. With this strong market performance, CAC’s third-party lease portfolio has now reached 641 aircraft.

Year-end, and previously unannounced transactions, include the acquisition of two mid-life Dash 8-400 aircraft (MSNs 4300 and 4301) on lease to Croatia Airlines, and an additional sale leaseback of two new ATR 72-600 aircraft (MSNs 1545 and 1552) with IndiGo. Additionally, CAC has extended its lease agreements with Aerolitoral, S.A. de C.V. (d.b.a. ‘Aeromexico Connect’), a subsidiary of Aerovías de México, S.A. de C.V. (d.b.a. ‘Aeromexico’), on three Embraer 190 aircraft previously acquired in 2017.

“We are delighted with the confidence that our customers have shown in us in 2019. Our strong focus on execution resulted in a significant expansion of our portfolio and the achievement of several significant milestones in the advancement of our leasing company,” said Steve Ridolfi, President, Chorus Aviation Capital. “In the three short years since the establishment of CAC, we have grown the third-party leasing portfolio to 641 aircraft valued at approximately US$1.3 billion with US$960 million in future contract lease revenue.”

“The year 2019 was one of many firsts for CAC. We secured a US$300.0 million warehouse facility, traded our first portfolio aircraft with the previously announced sale of three Dash 8-400 Falcon aircraft, and extended our first leases with the renewal of the three Aeromexico Connect E190 aircraft. With this successful aircraft re-lease outcome, we have no further scheduled lease expiries until 2021. Additionally, 2019 saw us deliver our first Airbus A220-300 aircraft for lease to airBaltic,” continued Mr. Ridolfi.

“We are pleased with the very positive momentum and the achievement of these important milestones,” commented Joe Randell, President and Chief Executive Officer, Chorus. “Trading aircraft, securing lease extensions, and penetrating new markets further demonstrates the capabilities of our maturing aircraft leasing business. As we continue to deliver on our growth strategy, our approach remains to conservatively and profitably build our leasing business.”

Jazz Aviation wins as one of Atlantic Canada's Top Employers for the ninth year in a row

Provided by Chorus Aviation Inc/CNW

HALIFAX, Jan. 9, 2020 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) announced that its subsidiary Jazz Aviation LP (‘Jazz’) was recognized as one of Atlantic Canada’s Top Employers for the ninth consecutive year.

“We are proud to be recognized as an organization that has exceptional human resource programs and forward-thinking workplace policies,” said Randolph deGooyer, President, Jazz. “We continue to invest in programs that make Jazz a great workplace for our employees to develop and succeed.”

This special designation by MediaCorp Canada Inc. recognizes employers in Atlantic Canada that lead their industries in offering exceptional places to work. Employers are evaluated on their physical workplaces; work and social atmospheres; health; financial and family benefits; vacation and time off; employee communications; performance management; training and skills development and community involvement.

Jazz was recognized for supporting ongoing employee development with formal mentoring and tuition subsidies; encouraging employees to prepare for the future with retirement planning assistance and contributions to a pension plan; cultivating an ownership culture through a share purchase plan; supporting employee social activities throughout the year; and providing opportunities for internships, co-op placements and apprenticeships.

Chorus Aviation expands leasing portfolio with new aircraft type and customer

Provided by Chorus Aviation Inc/CNW

Airbus A220-300s on sale-leaseback to airBaltic

Delivering regional aviation to the world

HALIFAX, Nov. 20, 2019 /CNW Telbec/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) announced today that Chorus Aviation Capital (‘CAC’) has entered into a sale-leaseback agreement with airBaltic of Latvia to acquire five new Airbus A220-300 aircraft marking the addition of this this new aircraft type to the CAC product offering.

This transaction brings its customer base to 15 airlines on six continents. Two deliveries are anticipated in the fourth quarter of 2019 with the balance to be completed by the end of the third quarter in 2020.

“We are very pleased to welcome Latvia’s flag carrier, airBaltic to our family of airlines, and to introduce the Airbus A220 aircraft to our product offering,” said Steve Ridolfi, President, Chorus Aviation Capital. “To date, we’ve grown our leasing portfolio to 601 aircraft acquired at approximately US $1.3 billion with approximately US $925.0 million in future contract lease revenue. The pipeline of opportunities remains strong.”  

The growth momentum in our leasing business continues. The economics and passenger comfort of the A220 aircraft is a great fit with our integrated aviation services strategy, and we’re excited to add Airbus to our list of world-class aircraft manufacturers,” commented Joe Randell, President and Chief Executive Officer, Chorus. “We’ve been conducting heavy maintenance work on Dash 8-400s operated by airBaltic and I’m pleased we’ve broadened our relationship to now include aircraft leasing.  This clearly demonstrates the broad scope of services we can offer to airlines around the world.  I applaud the Chorus team for reaching another milestone and for embracing our vision to become a worldwide provider of integrated regional aviation services.”

“We are delighted to have Chorus Aviation Capital as one of airBaltic’s valued partners supporting our Airbus A220-300 fleet modernization. This is another successful A220-300 sale and leaseback transaction that we have closed with great support from Skytech-AIC,” said Vitolds Jakovlevs, Chief Financial Officer of airBaltic.

Upon the completion of this transaction, and one other aircraft pending delivery to other customers, CAC’s portfolio will include 43 turboprops and 17 regional jets. When combined with the planned aircraft leased under the Capacity Purchase Agreement with Air Canada, Chorus’ fleet of leased aircraft will reach 131 aircraft valued at approximately US $2.2 billion.

1The CAC fleet total reflects the sale of three Dash 8-400s in October 2019.

Voyageur Aviation Corp. and Segers Aviation SA establish a regional aircraft parts depot in Dubai

Provided by Chorus Aviation Inc/CNW

HALIFAX, Nov. 17, 2019 /CNW Telbec/ – Voyageur Aviation Corp., a subsidiary of Chorus Aviation Inc. (‘Chorus’) (TSX: CHR), and Segers Aviation SA, a Segers Group company, are delighted to announce the establishment of a regional aircraft parts depot in Dubai, UAE. This exciting new partnership includes a spare parts distribution agreement that will leverage Segers’ experienced logistics and sales expertise to sell Voyageur-owned spare parts to operators in the region and beyond. 

Under this agreement, Voyageur will be providing a pool of Dash 8-400, CRJ, and Dash 8 Classic spare parts to Segers for sale or exchange. Segers’ UAE office has expertise in marketing its own inventory and MRO services to operators in the Middle East, Africa and Asia. The two organizations have a long history of successful cooperation and partnership with Voyageur having sent Dash 8 propeller components to Segers’ UK MRO, Proptech Aero Ltd for many years. 

“We are extremely pleased with the establishment of a regional parts depot in Dubai, which aligns with our vision to deliver regional aviation to the world,” said Joe Randell, President and Chief Executive Officer, Chorus. “Voyageur’s Avparts division has been on a steady growth path since its inception and is an important part of our ability to provide a full suite of regional aviation support services.”

Larry Bayliss, Vice President, Avparts at Voyageur said, “We have long recognized the need to position spare parts close to our customers and to offer commercial support within the time zone.  Our longstanding relationship with Segers combined with their proven logistics and sales capability make them an ideal partner.” 

Peter Clift, Segers Managing Director added, “Our Dubai location, with its many strategic benefits and excellent logistics connectivity, has played a significant role in our success over many years and we look forward to working with Voyageur on this fantastic opportunity. Voyageur’s access to, and skill in managing, aircraft spare parts gives us great confidence that we will have the right spare parts available at the right prices to support customers in the Middle East, Africa, Asia and Europe. We look forward to working with operators to meet their requirements and to discuss longer term support opportunities.”

Chorus President and CEO to be Inducted Into Canada’s Aviation Hall of Fame

Provided by Chorus Aviation Inc/CNW

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.

Chorus Subsidiary Jazz Wins Gold at Canada’s Safest Employers Awards

Provided by Chorus Aviation Inc./CNW

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.

About Chorus

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

About Jazz

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.

Chorus Aviation expands leasing portfolio with the addition of two ATR 72-600s on lease to Malindo Air

Provided by Chorus Aviation Inc/CNW

Delivering regional aviation to the world

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.

Jazz launches Jazz Aviation Pathways Program for Flight Attendants – First Agreement signed with Georgian College

Provided by Chorus Aviation Inc.

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 launches Jazz Aviation Pathways Program for Flight Attendants (CNW Group/Chorus Aviation Inc.)
Jazz launches Jazz Aviation Pathways Program for Flight Attendants (CNW Group/Chorus Aviation Inc.)

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.