By Brendan Read
Chorus Aviation’s flight path continues its ascent. The Halifax, Nova Scotia-based company owns Jazz Aviation LP, Voyageur Aviation Corp. and Chorus Aviation Capital (CAC) and has a vision to deliver regional aviation to the world.
Chorus reported that its first quarter 2019 operating revenue grew 6.2 per cent over the same period in 2018, to $344 million from $324 million. Propelling the company forward in 2019 are developments including:
Amended and extended the capacity purchase agreement (CPA) with Air Canada to 2035, securing Jazz’s position in Air Canada’s regional network for the next 17 years;
Completed a $97.26 million equity investment by Air Canada to fund new, larger-gauge aircraft at Jazz and further growth in regional aircraft leasing;
Entered into a firm purchase agreement with Bombardier for nine CRJ900s as part of Jazz’s fleet modernization plan;
Achieved an unprecedented 17-year collective agreement with Jazz pilots and enhanced the pilot mobility programme to access pilot careers at Air Canada;
Secured a USD $300 million credit facility to support growth of regional aircraft leasing business; and
Reached an agreement to acquire a portfolio of six aircraft with leases attached: two ATR72-600s on lease to Azul of Brazil and four Q400s on lease with two other existing customers.
These results build on a strong performance. Chorus reported that its operating revenues reached $1.45 billion in 2018 from $1.35 billion in 2017.
More recently, CAC reached an agreement to acquire five Q400s on lease with Flybe, and also entered into an agreement to deliver six ATR72-600s to IndiGo of India under a sale-leaseback transaction. Upon completion of these recent transactions, including other pending transactions, CAC’s announced portfolio commitments include 44 turboprops and 12 regional jets. When combined with the 47 aircraft leased under the CPA with Air Canada, Chorus’ fleet of leased aircraft comprises 103 aircraft valued at approximately US $1.7 billion. CAC has relationships with 14 regional airlines based in 13 countries.
“I’m very pleased with the execution of our growth and diversification strategy, which continues to build on the momentum achieved in 2018,” stated Joe Randell, Chorus president and CEO when commenting on the company’s first quarter 2019 financial results. “We are well positioned for the future.”