Jazz Air announces agreement with Thomas Cook Canada
April 5, 2010, Halifax - Jazz Air announced today that it has signed a flight services agreement with Thomas CookCanada Inc. to operate no less than six Boeing 757-200 aircraft on their behalf to various sun destinations from Canadian gateways during the winter season (November through April).
Subject to Jazz obtaining the required regulatory approvals and the execution of definitive leasing and maintenance agreements with Thomas Cook Airlines Ltd., the service will commence in November 2010.
If on or before May 30, 2010 Jazz and Thomas Cook are able to agree on pricing for the third, fourth and fifth winter seasons, then the agreement will be for a term ending April 30, 2015. Otherwise the agreement will have an initial term ending April 30, 2012.
This agreement is expected to generate approximately $100 million in additional annual revenues. The terms and conditions of the transaction are confidential.
"Growing and diversifying our business remains a top corporate priority; our agreement with Thomas Cook is a strong start that delivers value to all of our stakeholders," said Joseph Randell, President and Chief Executive Officer, Jazz Air LP. "We are thrilled to be partnering with one of the world's largest leisure travel groups, and it's our employees who have brought us to this important milestone. Our demonstrated ability to operate safely, reliably and with excellent customer service at competitive rates is the reason why we are able to grow and diversify our business. All our employees are to be commended for their 'can do' attitude and professionalism."
The opportunity to enter into this strategic partnership provides the potential for additional benefits for all stakeholders with minimum risk. The aircraft will be leased to Jazz Air LP from Thomas Cook Airlines Ltd. The plan is to brand the service as 'Thomas Cook' beginning in January, 2011.
"We see a great fit between Thomas Cook and Jazz," said Michael Friisdahl, President and Chief Executive Officer, Thomas Cook North America. "We're pleased to partner with an airline that prides itself on exceptional customer service and boasts amongst the strongest on-time performance in North America."