HALIFAX, July 16, 2012 /CNW/ - Chorus Aviation Inc. ('Chorus') (TSX: CHR.B CHR.A CHR.DB) today announced that it is strengthening its commitment to Nova Scotia
by expanding the operations and facilities of subsidiary Jazz Aviation
LP ('Jazz'). The expansion will bring approximately 150 new, highly
skilled workers to Halifax and bring the local payroll to approximately
$60 million annually.
"With the support of the Province of Nova Scotia, we will significantly
expand our heavy maintenance hangar, convert our administrative
building into a world-class operations centre and establish a new
corporate headquarters," said Joe Randell, President and Chief
Executive Officer, Chorus. "This is part of our overall strategic plan
to increase our efficiency and cost competitiveness; thereby improving
our operating economics and delivering more value to our stakeholders."
"Jazz's decision to expand its operations in Nova Scotia reinforces that
this province is a great place to live, work and raise a family," said
Premier Dexter. "Today, the province is helping Jazz create and
maintain hundreds of good jobs in Nova Scotia. It is another example of
how this government is growing the province's economy and helping to
create and preserve jobs that Nova Scotians can count on."
"Jazz's roots in Nova Scotia go back to regional carrier Air Nova that
operated primarily in Atlantic Canada," continued Mr. Randell. "In
1989 and in 1994, with the assistance of the Nova Scotia Government, we
established our hangar facility and administrative headquarters
respectively in Halifax. We have honoured all financial and growth
commitments. This facility and its ability to accommodate growth was
one of the primary reasons for establishing what is today Jazz's
national headquarters. We applaud the entrepreneurial spirit and
cooperation of the Province."
The transformation of Jazz's current combined operations and
administrative headquarters into a pure operations centre will improve
the working environment for our employees as well as the overall
performance of the airline in terms of operational integrity,
communication, customer service, and operating economics. The
associated economic spinoffs with these projects are significant as
they exclusively involve Nova Scotian suppliers.
Expanded Heavy Maintenance Base
Jazz will increase its current two lines of heavy maintenance to three
by the summer of 2013, and will look for opportunities to grow further.
The current hangar facility located at the Halifax Stanfield
International Airport will be expanded to accommodate this growth and
improve the efficiency of the operation.
Systems Operations Control (SOC)
Jazz's SOC centre is responsible for deploying and managing over 860
flights per day to 84 destinations across North America. Jazz operates
the most daily flights within Canada, and flies to more Canadian
destinations than any other carrier. With the growth of Jazz operations
in recent years, the centre is restricted at maximum capacity. The
renovation of the centre will result in increased workspace and
improved technology that will facilitate better customer service as a
result of improved communications within the centre, and externally
with the field, and better positions Jazz to grow this area and
generate of ancillary revenue.
New Corporate Headquarters
Chorus is in final negotiations to acquire an administrative building
that will serve as its new corporate headquarters in the Halifax area.
Currently, Jazz rents space in several locations as space is not
available at its airport facility. The consolidation of administrative
functions and the cost reductions associated are important parts of the
The Province's financial assistance will consist of a $2.5 million
forgivable loan based on meeting employment targets and a $2 million
employee incentive to recruit, train and develop new employees or to
upgrade current employees' skills. In addition, the Province will
provide a $12 million interest-bearing, repayable loan.
Caution regarding forward-looking information
Certain statements in this news release may contain statements which are
forward-looking. These forward-looking statements are identified by the
use of terms and phrases such as "anticipate", "believe", "could",
"estimate", "expect", "intend", "may", "plan", "predict", "project",
"will", "would", and similar terms and phrases, including references to
assumptions. Such statements may involve but are not limited to
comments with respect to strategies, expectations, planned operations
or future actions.
Forward-looking statements relate to analyses and other information that
are based on forecasts of future results, estimates of amounts not yet
determinable and other uncertain events. Forward-looking statements, by
their nature, are based on assumptions, including those described
below, and are subject to important risks and uncertainties. Any
forecasts or forward-looking predictions or statements cannot be relied
upon due to, amongst other things, changing external events and general
uncertainties of the business. Such statements involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, performance or achievements to differ materially from
those expressed in the forward-looking statements. Results indicated in
forward-looking statements may differ materially from actual results
for a number of reasons, including without limitation, risks relating
to Chorus' relationship with Air Canada, risks relating to the airline
industry, energy prices, general industry, market, credit, and economic
conditions, competition, insurance issues and costs, supply issues,
war, terrorist attacks, epidemic diseases, acts of God, changes in
demand due to the seasonal nature of the business, the ability to
reduce operating costs and employee counts, secure financing, employee
relations, labour negotiations or disputes, restructuring, pension
issues, currency exchange and interest rates, leverage and restructure
covenants in future indebtedness, dilution of Chorus shareholders,
uncertainty of dividend payments, managing growth, changes in laws,
adverse regulatory developments or proceedings, pending and future
litigation and actions by third parties. The forward-looking statements
contained in this discussion represent Chorus' expectations as of July
16, 2012 and are subject to change after such date. However, Chorus
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise, except as required under applicable
About Chorus Aviation Inc.
Chorus Aviation Inc. ("Chorus") was incorporated on September 27, 2010
and is a dividend-paying holding company which owns Jazz Aviation LP,
Chorus Leasing I Inc., Chorus Leasing II Inc., and Chorus Leasing III
Inc. (the leasing companies own the Q400 aircraft) and 7503695 Canada
Chorus is traded on the Toronto Stock Exchange under the trading symbols
of CHR.A, CHR.B and CHR.DB. For more information, visit www.chorusaviation.ca
About Jazz Aviation LP
Jazz Aviation LP has a strong history in Canadian aviation with its
roots going back to the 1930s. Jazz is wholly owned by Chorus Aviation
Inc. and continues to generate some of the strongest operational and
financial results in the North American aviation industry.
There are two airline divisions operated by Jazz Aviation LP: Air
Canada Express and Jazz.
Air Canada Express: Under a capacity purchase agreement with Air
Canada, Jazz provides service to and from lower-density markets as well
as higher-density markets at off-peak times throughout Canada and to
and from certain destinations in the United States. Jazz currently
operates scheduled passenger service on behalf of Air Canada with over
860 departures per weekday to 84 destinations in Canada and in the
United States with a fleet of Canadian-made Bombardier aircraft.
Jazz: Under the Jazz brand, the airline offers charters throughout
North America with a dedicated fleet of five Bombardier aircraft for
corporate clients, governments, special interest groups and individuals
seeking more convenience. Jazz also has the ability to offer airline
operators services such as ground handling, dispatching, flight load
planning, training and consulting.
For more information, visit www.flyjazz.ca.
SOURCE CHORUS AVIATION INC.
For further information:
Manon Stuart (902) 873-5054 Halifax, Nova Scotia email@example.com
Debra Williams (519) 457-8071 London, Ontario firstname.lastname@example.org
Nathalie Megann (902) 873-5094 Halifax, Nova Scotia email@example.com