Purchase Agreement for Bombardier Commercial Aircraft and Chorus Aviation

By CIOReview | Monday, February 16, 2015
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FERMONT,CA: Bombardier Commercial Aircraft, a manufacturer of planes and trains, signs a purchase agreement with Chorus Aviation, for 23 Q400 NextGen Aircraft’s and launching extended service program for Dash 8-300 Aircraft. Being the parent company of Jazz Aviation LP, Chorus Aviation, is a dividend-paying holding company.

Under this agreement, Chorus will buy 13 Q400 NextGen aircrafts and options for 10 Q400 NextGen aircraft. Jazz, a Canadian regional airline will operate the delivered aircrafts under Air Canada Express banner. Q400 NextGen aircraft is an agile turboprop with efficient jet speed and turboprop fuel and it meets short-haul operation needs. It also includes an optional dual-class interior, extra-capacity configuration of 86 seats and a cargo-passenger combi configuration.

Also, Dash 8-300 aircraft Extended Service Program will be launched and operated by Chorus and Jazz and it will enhance the flight cycle of the Dash 8-300 turboprop from 80,000 flight cycles to 120,000 flight cycles. This program will start by early 2017 and is meant to increase the service life of Jazz’s Dash 8-300 aircraft to approximately 15 years.

Dash 8-300 aircraft is a 50-seat turboprop which meets regional passenger demands in Canada and is in demand. “This 50-seat turboprop is well suited to many of the regional markets we serve under the Air Canada Express banner, and it’s difficult to beat its economics.” says Joseph Randell, President and Chief Executive Officer, Chorus and Jazz.

“The addition of these new Q400 NextGen aircraft will continue Jazz’s fleet renewal program that began in 2011, and provide unit operating costs that are amongst the lowest of any regional aircraft,” says Joseph Randell, President and Chief Executive Officer, Chorus and Jazz.

“The addition of these efficient aircraft is an important component of our cost reduction plans and the amended Capacity Purchase Agreement (‘CPA’) with Air Canada. The Q400 NextGen airliner has proven to be an outstanding complement to our exclusive fleet of Bombardier turboprops and regional jets.” Randell adds.

“Our collaboration with Bombardier goes back many years and we’re very pleased to be the launch customer for this innovative program that will keep this valuable asset in the Jazz fleet,” Randell adds.