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Air Canada and Jazz parent extend agreement, securing regional airline’s future

January 14, 2019 5:13 PM
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Chorus says the agreement, announced Monday, will grow its revenues by $940 million for a contracted total of $2.5 billion in aircraft leasing and fixed fees over the next 17 years. The deal also amends a 2015 agreement by lowering the fixed fees and incentive revenue Chorus receives by about $50 million annually.

Under the new contract, Air Canada will make an equity investment of $97.3 million in Chorus, giving the carrier about 9.99 per cent of Chorus’s Class A and Class B voting shares, cumulatively.

Chorus aims to put some of the proceeds from the investment to its leasing business, facilitating the purchase of new, larger-gauge aircraft, including nine CRJ900s in 2020.

Source: thestar.com

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