Chorus Aviation Inc. (ticker: CHR_A.TO, exchange: Toronto Stock Exchange (.TO))
News Release -
Jazz Air LP announces flight services agreement with Thomas Cook Canada to operate Boeing 757-200 aircraft
HALIFAX, Apr 5, 2010 (Canada NewsWire via COMTEX) --Today, Jazz Air LP announced that it has signed a flight services agreement with Thomas Cook Canada Inc. ("Thomas Cook") 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."
About Jazz Air LP
Jazz Air has a strong history in Canadian aviation with its roots going back to the 1930s. Since becoming publicly traded in February 2006, it has generated some of the strongest operational and financial results in the North American aviation industry. 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 approximately 800 departures per weekday to over 80 destinations in Canada and in the United States with a fleet of Canadian-made Bombardier aircraft. For more information, visit www.flyjazz.ca.
About Thomas Cook
Thomas Cook North America is a division of Thomas Cook Group plc, one of the world's leading leisure travel groups with sales of C$13.4 billion, 22.3 million customers and 31,000 employees. Its travel businesses in Canada include Sunquest Vacations, Fun Sun Vacations, Exotik Tours and Bel Air Travel. With a network of over 3,400 owned and franchised travel stores and interests in 86 hotels and resort properties, Thomas Cook operates in 21 countries including Canada and the United States. For more information, visit www.thomascookgroup.ca or www.thomascookgroup.com.
SOURCE: JAZZ AIR INCOME FUND
Media Contacts: Manon Stuart, (902) 873-5054, Halifax, firstname.lastname@example.org; Debra
Williams, (519) 457-8071, London, email@example.com; www.flyjazz.ca