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Chorus Aviation announces expansion of Jazz fleet

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Written by editor

HALIFAX, Canada – Chorus Aviation Inc today announced that it will add 10 incremental growth aircraft to the Jazz Aviation LP CPA fleet.

HALIFAX, Canada – Chorus Aviation Inc today announced that it will add 10 incremental growth aircraft to the Jazz Aviation LP CPA fleet. These aircraft will be operated under the Air Canada Express brand per Jazz’s Capacity Purchase Agreement (‘CPA’) with Air Canada. Five 78-seat Q400 turboprops and five 75-seat CRJ705 regional jets will be delivered in 2016 and early 2017 respectively, and will remain in the CPA covered fleet until 2025.

“We’re very pleased to be experiencing this growth in Jazz’s fleet less than nine months after establishing the new commercial agreement with Air Canada,” said Joseph Randell, President and Chief Executive Officer, Chorus. “The addition of these 10 incremental aircraft demonstrates the confidence in Jazz’s reputation for being one of North America’s strongest regional operators and its ever-increasing cost competitiveness. While not material to the current $109.0 million annual fixed fee paid to Jazz under the CPA, the transaction will add another $2.0 million in such fees annually. The addition of these larger gauged aircraft will further help reduce Jazz’s unit cost and increase its market competitiveness. These aircraft are in addition to the fleet modernization plan currently underway as a result of the recently amended CPA with Air Canada which originally called for a minimum of 44 Q400s and 16 CRJ705s by the year 2020.”

Previous Q400 and CRJ705 fleet plan

Aircraft

Type 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Q400 27 37 39 39 39 44 44 44 44 44 44
CRJ705 16 16 16 16 16 16 16 16 16 16 16

New Q400 and CRJ705 fleet plan

Aircraft

Type 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Q400 27 42 44 44 44 49 49 49 49 49 49
CRJ705 16 16 21 21 21 21 21 21 21 21 21

*No change to Dash 8-100, Dash 8-300 and CRJ200 fleet.

The five incremental growth Q400s will be sourced by Air Canada and leased into the Jazz CPA operation. Sourcing for the CRJ705 aircraft has not yet been finalized.