Jazz and Air Canada successfully conclude negotiations regarding controllable cost rates payable under the capacity purchase agreement



    HALIFAX, Feb. 2 /CNW/ - Jazz Air LP ("Jazz") today announced that an
agreement has been successfully reached with Air Canada regarding the
establishment of new rates for controllable costs that will become payable by
Air Canada under the Capacity Purchase Agreement (CPA) in respect of the years
2009 to 2011 (inclusive). This rate review and adjustment was required under
the terms of the CPA.
    The new rates are retroactive to January 1, 2009, and the parties will
reconcile the amounts previously paid to the amounts owing under the new rates
such that the parties will be in the same position they would have been in had
the new rates been in effect as of January 1, 2009.

    CAUTION REGARDING FORWARD-LOOKING INFORMATION

    Certain statements in this news release may contain statements which are
forward-looking statements. 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, energy prices,
general industry, market 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, employee relations,
labour negotiations or disputes, restructuring, pension issues, currency
exchange and interest rates, changes in laws, adverse regulatory developments
or proceedings, pending and future litigation and actions by third parties, as
well as the factors identified in the Risk Factors section of Jazz Air LP's
and Jazz Air Income Fund's restated annual MD&A dated February 19, 2008, the
Annual Information Form dated March 28, 2008, and interim MD&A dated November
5, 2008. The forward-looking statements contained in this discussion represent
Jazz's expectations as of November 5, 2008, and are subject to change after
such date. However, Jazz 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 securities
regulations.

    About Jazz Air Income Fund

    Jazz Air Income Fund is an unincorporated, open-ended trust established
under the laws of the Province of Ontario, created to indirectly acquire and
hold an interest in the outstanding limited partnership units of Jazz Air LP.

    About Jazz

    Jazz is the second largest airline in Canada based on fleet size and the
number of routes operated. Jazz operates more flights and flies to more
Canadian destinations than any other Canadian carrier. Jazz forms an integral
part of Air Canada's domestic and transborder market presence and strategy.
Jazz is owned by Jazz Air Income Fund (TSX: JAZ.UN).
    Jazz is not a typical airline. The airline has a commercial agreement
with Air Canada that is the core of its business. Under the Capacity Purchase
Agreement (CPA), Air Canada currently purchases substantially all of Jazz's
fleet capacity based on predetermined rates. The CPA provides commercial
flexibility, low trip costs and connecting network traffic to Air Canada.
Also, the CPA reduces Jazz's financial and business risks, and provides a
stable foundation for day-to-day operations and future growth.




For further information:

For further information: Manon Stuart, Halifax, Nova Scotia, (902)
873-5054; Debra Williams, London, Ontario, (519) 457-8071; www.flyjazz.ca


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