Air Canada has extended its purchase agreement with Chorus Aviation by 10 years, which allows Air Canada’s biggest regional provider, Jazz Aviation, to continue to fly under the Air Canada Express brand through 2035.

The deal came into question when Air Canada announced that their low-cost subsidiary, Air Canada Rouge, would begin to fly on more regional routes, which encroached on the traditional territory of Chorus Aviation.

With the extended agreement, there were also some revisions to the original agreement. These amendments are said to simplify and modernize Jazz’s fleet, and will provide regional flexibility for Air Canada. In 2019 and 2020 alone, savings are projected to be more than $50 Million dollars. Upon the amendments coming into effect, Air Canada will make an equity investment of $97.26 Million dollars. Also coming into effect with the new agreement, Air Canada’s Deputy Chief Executive Officer and the Chief Financial Officer, Michael Rousseau, will be named to Chorus’ Aviation Board of Directors.

The new agreement will also change the fleet of Jazz Aviation. Jazz will start to downsize their Q400 fleet, bringing the number of aircraft from 44, to 36. Jazz will also reduce the number of CRJ-200 aircraft being sourced from Air Georgian from 16 to 15, due to the acquisition of 14 CRJ-900 aircraft from SkyWest. The agreement will also see Jazz Aviation acquiring another 9 CRJ-900 aircraft.

The amendments shall provide long-term stability for Chorus Aviation, reaffirming that Jazz is Air Canada’s largest regional carrier, as well as enabling growth for Chorus’ through Air Canada’s equity investment.

Based in Halifax, Nova Scotia, Jazz Aviation, a wholly owned subsidiary of Chorus Aviation, is Air Canada’s largest regional carrier, operating over 110 aircraft, and servicing over 75 destinations. Jazz Aviation provides regional and charter services around North America, primarily flying under the Air Canada Express brand.

Air Canada is Canada’s flag carrier, serving more than 210 airports on 6 continents. Air Canada is among the top 20 largest airlines in the world

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