Chorus Aviation

[QFE]

BNN just reported Air Canada has made a 97 Million Dollar investment in Chorus.

[J.O.]

https://theairlinewebsite.com/topic/449386-the-circle-is-almost-complete-ac-buys-minority-stake-in-chorus-cpa-amended/

 

Edited January 14, 2019 by J.O.

[boestar]

Yes the capital injection will assist with fleet expansion.  it also comes with a 17 year CPA guarantee.

[wizard]

All CRJ-200 aircraft at Air Canada express will transition to Jazz by the end of 2019. Air georgian lost beech1900 routes in October  and that type of aircraft is being phased out of Air Canada express. So what aircraft will they fly ? This indeed looks like the end for Air Georgian flying with Air Canada express. Georgian has a poor track record for reliability and Air Canada looks like they are pulling the plug.

[rudder]

AC now has the perfect arrangement with CHR/Jazz:

- Long term regional feed cost certainty.

- Willingness of CHR to put some of the Express fleet renewal debt on its own balance sheet.

- Labour stability until at least 2026 (and perhaps beyond).

- majority of Express operation at a full service CPA vendor (dispatch, crew scheduling, MTC, etc)

- transparency of CHR future plans due partial ownership and BOD representation 

 

AC will no longer have to expend oversight resources on an underperforming Express vendor. This is the latest but perhaps not the last development on the AC Express front.

Bay Street certainly seemed to like the announcement.

 

 

 

[Seeker]

2 hours ago, rudder said:

AC now has the perfect arrangement with CHR/Jazz:

- Long term regional feed cost certainty.

- Willingness of CHR to put some of the Express fleet renewal debt on its own balance sheet.

- Labour stability until at least 2026 (and perhaps beyond).

- majority of Express operation at a full service CPA vendor (dispatch, crew scheduling, MTC, etc)

- transparency of CHR future plans due partial ownership and BOD representation 

 

AC will no longer have to expend oversight resources on an underperforming Express vendor. This is the latest but perhaps not the last development on the AC Express front.

Some of these points that you describe as being the perfect arrangement were the exact points raised by Chorus back when back when AC decided to diversify its CPA structure in the first place.  The impetus for that decision was the realization that job action by the Jazz pilots would cripple the network.  I guess they feel that's no longer a threat, or at least, a smaller threat than continuing to use GGN.

Edited January 15, 2019 by seeker

[rudder]

33 minutes ago, seeker said:

Some of these points that you describe as being the perfect arrangement were the exact points raised by Chorus back when back when AC decided to diversify its CPA structure in the first place.  The impetus for that decision was the realization that job action by the Jazz pilots would cripple the network.  I guess they feel that's no longer a threat, or at least, a smaller threat than continuing to use GGN.

 

Actually, in 2010 most of this was not available to AC.

AC felt it was overpaying. CHR did not have the motivation to become the principal owner of the Express aircraft fleet (due to expiring CPA in 2020). Jazz labour agreements were all going to open again in 2014 and likely every 3 years thereafter. And CHR had made it clear that revenue diversification was imperative (Thomas Cook contract).

Fast forward to 2019. AC is paying market rates as of 01 January 2019 rather than 2021. CHR now has a fully financed aircraft leasing subsidiary (Chorus Aviation Capital). The AC CPA is running to 2035. Jazz labour is tied up in CBA’s that renew on the same terms as mainline labour until 2026. Meanwhile Georgian and Skyregional labour are unionizing thereby creating the same type of uncertainty that AC was trying to avoid with Jazz in 2010.

From what I have seen, AC got a great deal including a seat on the CHR BOD to keep a close eye on things. And the AC commercial plan for mainline/Rouge remains growth oriented. Having any weak links in the Express network could harm that plan. Go with the operator that has decades of experience buying them, flying them, and fixing them. Keeping a second tier carrier running with the qualified labour shortages is no easy task as we approach the 2020’s.

 

[Guest]

Advisory - Chorus Aviation Inc. to Present Fourth Quarter and Year-End 2018 Financial Results Français

 

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News provided by

Chorus Aviation Inc.

Jan 24, 2019, 08:30 ET

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HALIFAX, Jan. 24, 2019 /CNW/ - Chorus Aviation Inc. ("Chorus") (TSX: CHR) will hold a conference call for analysts on Friday, February 22, 2019, to present fourth quarter and year-end 2018 financial results of Chorus.

Details are as follows:

ANALYST CONFERENCE CALL

Joe Randell, President and Chief Executive Officer, and Jolene Mahody, Executive Vice President and Chief Financial Officer, will present these results and will be available for analysts' questions. Media may access this call on a listen-in basis.

Date:	Friday, February 22, 2019
Time:	9:30 A.M. ET / 10:30 A.M. AT
By telephone:	1-888-231-8191. Please allow 10 minutes to be connected to the conference call.
By audio webcast:	https://event.on24.com/wcc/r/1923003/1C1675BF55CDC811D8CD46BF1E407F1B or on Chorus' website at www.chorusaviation.ca under Reports > Executive Management Presentations. Note: This is a listen-in only audio webcast. Media Player or Real Player is required to listen to the broadcast; please download well in advance of the call.
Replay:	Instant replay will be available beginning approximately two hours after the call at 1-855-859-2056 toll free, passcode 1093749# (pound key), until midnight ET Thursday, February 28, 2019.

SOURCE Chorus Aviation Inc.

For further information: Manon Stuart, (902) 873-5054, Halifax, Nova Scotia, mstuart@chorusaviation.ca; Debra Williams, (905) 671-7769, Toronto, Ontario, dwilliams@chorusaviation.ca

Related Links

www.chorusaviation.ca

[Guest]

Chorus announces Jazz pilots' ratification of labour agreement Français

 

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News provided by

Chorus Aviation Inc.

Jan 31, 2019, 18:31 ET

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HALIFAX, Jan. 31, 2019 /CNW/ - Chorus Aviation Inc. ('Chorus') (TSX: CHR) announced today that pilots of its subsidiary, Jazz Aviation LP ('Jazz'), have ratified the amendments to their collective agreement which was tentatively agreed on January 14, 2019. The Air Lines Pilots Association, International ('ALPA') represents Jazz's pilots based in Vancouver, Calgary, Toronto and Montreal.

"We are very pleased to have finalized an amended collective agreement with our pilots," said Colin Copp, President, Jazz Aviation. "This long-term agreement takes us out to December 31, 2035 and demonstrates our ability to work together for a common goal of continued success for Jazz. My sincere thanks to all involved for their efforts in bringing this amended agreement to fruition."

Ratification of this tentative agreement was a condition of implementing the amendments to, and extension of, the capacity purchase agreement ('CPA') between Air Canada and Jazz, as announced on January 14, 2019. The amendment and extension of the CPA remains subject to completion of Air Canada's $97.26 million equity investment in Chorus, which contains customary conditions to closing. Chorus anticipates closing the equity investment by no later than February 8, 2019, upon which the amendment and extension of the CPA will become effective.

The pending amendments to the CPA provide for a number of significant benefits including fleet modernization with the addition of 14 larger-gauge CRJ900 (76-seat) aircraft of which nine new aircraft will generate additional lease revenue under the CPA. Air Canada will consolidate more of its overall regional capacity in the Jazz operation. Chorus will also secure preferred partner status on the operation of aircraft with up to 50 seats through a right to match third-party offers.  Additionally, an enhanced pilot mobility agreement will provide Jazz pilots access to careers at Air Canada. The amended CPA will ensure that Chorus and Air Canada are well positioned to respond as allies to an ever-changing industry.

"I sincerely thank Jazz pilots for embracing this opportunity for an extended and mutually beneficial strategic partnership with Air Canada," said Joe Randell, President and Chief Executive Officer, Chorus.

[Guest2]

Chorus Aviation Announces President & Chief Executive Officer Succession Français

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NEWS PROVIDED BY

Chorus Aviation Inc. 

Sep 14, 2022, 19:00 ET

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HALIFAX, NS, Sept. 14, 2022 /CNW/ - The Board of Directors of Chorus Aviation Inc. ('Chorus' or the 'Company') (TSX: CHR) announced today that Joseph (Joe) Randell plans to retire as President and Chief Executive Officer, in the first quarter of 2023, following the Company's reporting of its 2022 year-end results.  His retirement will follow a 37-year leadership career in regional aviation. Upon Mr. Randell's retirement, Colin Copp, currently the Chief Operating Officer, Chorus and President, Chorus Aviation Services, will be appointed President and Chief Executive Officer of Chorus.  

"I am delighted to announce Colin Copp as our next CEO," said Paul Rivett, Chair of the Chorus Board of Directors. Mr. Rivett continued, "Chorus is fortunate to have a CEO successor in Colin Copp, with such an in-depth knowledge of the business and its culture.  Colin has played an instrumental role in Chorus' evolution, displaying a proven ability to think strategically, to communicate his vision and to successfully execute on the intended plans. The Board looks forward to working with Colin and is confident in Colin's ability to guide Chorus through the next exciting chapter of growth and diversification."

Mr. Copp has been the Chief Operating Officer of Chorus and President of Chorus Aviation Services, including Jazz Aviation and Voyageur Aviation, since March 2019.  Previously, he was the President of Jazz Aviation. He has been with the Company and its predecessors for over 30 years, with leadership experience in key roles across operations, administration, and labour relations.  Colin holds a Masters' Degree in Business Administration, is a Certified Negotiator and Chartered Mediator and holds a designation from the Institute of Corporate Directors (ICD.D). He is currently a Board member of the Air Transport Association of Canada and the Aerospace Industries Association of Canada.

"Colin has been an integral member of my leadership team for almost two decades and has proven to be an exemplary leader with demonstrated skills in handling complicated change management issues and multi-stakeholder negotiations," said Joe Randell. "He has built strong relationships across the aviation industry and elevated Jazz and Voyageur to new levels of performance.  I am confident Colin will adeptly and successfully lead Chorus through the next transformative phase, and I look forward to working closely with Colin, and the rest of the executive team, as he transitions to the CEO role."

Mr. Randell's regional aviation career spans four decades. He was the founding President of Air Nova, having started the Atlantic Canada-based airline in 1986 with two aircraft serving five destinations.  He will retire having built a global company with approximately 5,000 employees, which includes the largest regional airline in Canada, a market leading aircraft asset management company and the world's largest aircraft lessor solely focused on the regional segment. Mr. Randell has provided stable leadership and successfully executed a long-term vision for Chorus through the most challenging periods for the aviation industry.  In 2020, he was inducted into the Canadian Aviation Hall of Fame in recognition of his significant contribution in advancing Canadian aviation.

"Joe is widely recognized as the founder and builder of regional aviation in Canada," said Mr. Rivett. "He has been a true visionary, continuing to re-invent the business through various cycles and trends in the industry.  Joe is equally respected for his ethics and integrity, which has resulted in many strong industry and community relationships and partnerships.  His own personal values have shaped an award-winning corporate culture.  On behalf of the Board and the employees of the Chorus companies, I thank Joe for his long-standing dedication and commitment, including his support through the upcoming transition.