Canada NewsWire
MONTREAL and HALIFAX, Feb. 4, 2019
$97.26 million Air Canada equity investment in Chorus reinforces partnership
MONTREAL and HALIFAX, Feb. 4, 2019 /CNW/ - Air Canada (TSX: AC) and Chorus Aviation Inc. (TSX: CHR) ("Chorus"), parent company of Jazz Aviation LP ("Jazz"), today confirmed that all conditions have been met and the previously announced amendment and extension of the Capacity Purchase Agreement (CPA) between Air Canada and Jazz has become effective. As announced on January 14, 2019, the improved CPA is effective retroactively as of January 1, 2019 and extends to December 31, 2035.
As part of the agreement to amend the CPA, Air Canada has also completed the $97.26 million equity investment in Chorus previously announced on January 14, 2019. Air Canada has acquired 15,561,600 Class B Voting Shares in the capital of Chorus, representing approximately 9.99% of the issued and outstanding Class A Variable Voting Shares and Class B Voting Shares of Chorus on a combined basis.
"Our improved CPA with Jazz, including our equity investment in Chorus, deepens an already strong partnership to the advantage of all parties and their stakeholders. It equips Air Canada with additional cost-effective means to compete in the all-important regional market segment and provides long-term stability to Chorus and Jazz. The ultimate beneficiaries of this agreement will be our customers, as it gives us greater flexibility to operate the aircraft best-suited to the communities we serve on convenient schedules, better connecting travellers to Air Canada's global network," said Calin Rovinescu, President and Chief Executive of Air Canada.
"We are extremely pleased and proud to have secured this long-term agreement with Air Canada," said Joe Randell, President and Chief Executive Officer, Chorus. "The strong alliance with Air Canada ensures a joint strategic response to an ever-changing industry. The benefits for both parties are significant and position us well for the future."
Highlights of the CPA Amendment
For additional details on these transactions please see the Air Canada and Chorus Aviation media releases of January 14, 2019:
Caution Regarding Forward-Looking Information
This news release contains forward-looking statements within the meaning of applicable securities laws. Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties. Forward-looking statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. Actual results may differ materially from results indicated in forward-looking statements due to a number of factors. Any forward-looking statements contained in this news release represent expectations as of the date of this news release and are subject to change after such date. However, except as required under applicable securities regulations, any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, is disclaimed.
SOURCE Air Canada
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