Delivering regional aviation to the
world
HALIFAX, May 21, 2019 /CNW/ - Chorus Aviation Inc.
('Chorus') (TSX: CHR) announced today that Chorus Aviation Capital
('CAC') has entered into a purchase agreement to acquire five,
mid-life Bombardier Q400 aircraft currently on lease with
Europe's largest independent
regional airline, Flybe. This transaction is expected to close by
this summer and is subject to customary conditions precedent to
closing, such as the novation of the existing leases, as well as
the receipt of all regulatory approvals or consents required in
connection with the acquisition of Flybe by Connect Airways
Limited. With these acquisitions, Chorus Aviation Capital has
announced 50 commitments to date for its regional aircraft leasing
business.
"We are very pleased to expand our relationship with our
existing customer, Flybe," said Steve
Ridolfi, President, Chorus Aviation Capital. "In less than
two years we've grown our leasing portfolio to 50 aircraft acquired
at approximately US $995.0 million
with US $765.0 million in future
contract lease revenue."
"In addition to growing CAC's lease portfolio, these
mid-life aircraft play to the Chorus group's strengths as a
diversified provider of regional aviation services," commented
Joe Randell, President and Chief
Executive Officer, Chorus. "At the end of the lease term,
Chorus will have multiple potential uses for these aircraft,
including lease extensions, re-leases or sale to new operators,
conversions to non-passenger use, or disassembly for parts sales. I
applaud the Chorus team for reaching this important milestone and
for embracing our vision to become a worldwide provider of
integrated regional aviation services."
Upon the completion of this transaction, and seven other
aircraft pending delivery to other customers, CAC's portfolio will
include 38 turboprops and 12 regional jets placed with 13 airlines
on six continents. When combined with the 47 aircraft leased under
the Capacity Purchase Agreement with Air Canada, Chorus' fleet of
leased aircraft has reached 97 aircraft valued at approximately US
$1.6 billion.
About Chorus Aviation Capital
Established in 2017, Chorus Aviation Capital currently has
relationships with 13 regional airlines based in 13 countries. CAC
is focused on building a portfolio of new and mid-life regional
aircraft, while leveraging the synergies inherent among its
affiliated companies to provide a full suite of regional aviation
services.
About Chorus
Headquartered in Halifax, Nova
Scotia, Chorus was incorporated on September 27, 2010. Chorus' vision is to deliver
regional aviation to the world. Chorus has been leasing its owned
regional aircraft into Jazz's Air Canada Express operation since
2011, and established Chorus Aviation Capital to become a leading,
global provider of regional aircraft leases. Chorus also owns
Jazz Aviation LP and Voyageur Aviation Corp. – companies that have
long histories of safe and solid operations that deliver excellent
customer service in the areas of contract flying operations,
engineering, fleet management, and maintenance, repair and
overhaul. Together, the Chorus group of companies can provide
a full suite of regional aviation support services. Chorus Class A
Variable Voting Shares and Class B Voting Shares trade on the
Toronto Stock Exchange under the trading symbol 'CHR'.
www.chorusaviation.ca
About Flybe
Flybe is the largest independent airline in Europe and carries approximately eight million
passengers per year between 81 airports across the UK and
Europe, with over 210 routes
across 15 countries.
Forward-Looking Information
This news release may contain 'forward-looking information'.
Forward-looking information is identified by the use of terms and
phrases such as "anticipate", "believe", "could", "estimate",
"expect", "intend", "may", "plan", "predict", "potential",
"pending", "project", "will", "would", and similar terms and
phrases. Forward-looking information involves known and unknown
risks, uncertainties and other factors that may cause actual
results, performance or achievements to differ materially from
those indicated in the forward-looking information. Actual results
may differ materially from results indicated in forward-looking
information for a number of reasons, including the failure to close
the transactions referenced in this news release on the terms and
conditions currently contemplated by Chorus, or at all, as well the
risk factors identified in Chorus' Annual Information Form
dated February 21, 2019 and in Chorus' public disclosure
record available at www.sedar.com. Statements containing
forward-looking information in this news release represent Chorus'
expectations as of the date of this news release (or as of the date
they are otherwise stated to be made) and are subject to change
after such date. Chorus disclaims any intention or obligation to
update or revise such statements to reflect new information,
subsequent events or otherwise, unless required by applicable
securities laws.
SOURCE Chorus Aviation Inc.