Chorus, Air Canada complete Capacity Purchase Agreement

February 04, 2019
Written by Wings Staff
Chorus plans to use around 60 per cent of the Air Canada investment to purchase 14 larger-gauge CRJ900 (76-seat) aircraft to modernize Jazz’s fleet, nine of which will generate additional lease revenue under the CPA. (Photo: Jazz Aviation)
Chorus plans to use around 60 per cent of the Air Canada investment to purchase 14 larger-gauge CRJ900 (76-seat) aircraft to modernize Jazz’s fleet, nine of which will generate additional lease revenue under the CPA. (Photo: Jazz Aviation)
The pilots of Jazz Aviation LP, a subsidiary of Chorus Aviation Inc., 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.

Chorus explains the 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.

RELATED: Air Canada $97.3M investment in Chorus

On February 4, 2019, Chorus and Air Canada then announced they had finalized the extended Capacity Purchase Agreement by completing Air Canada’s $97.26 million equity investment in Chorus.

The amendments to the CPA provide for 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. Chorus explains Air Canada will consolidate more of its overall regional capacity in the Jazz operation.

RELATED: Chorus secures $300M credit facility

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.

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