HALIFAX,
Oct. 4, 2012 /CNW/ - Chorus Aviation
Inc. ("Chorus") (TSX: CHR.B CHR.A CHR.DB) yesterday
announced that Jazz Aviation LP ('Jazz') had received the decision
in the arbitration relating to the benchmarking provisions within
its Capacity Purchase Agreement ('CPA') with Air Canada to compare
the rate of growth of Jazz's controllable costs to those of a
specified group of comparable operators. The three-member
arbitration panel, with one member dissenting, concluded the
component unit cost driver ('CUCD') put forward by Air Canada is
the appropriate methodology. However, the arbitration panel also
agreed certain controllable cost adjustments have been made in
Jazz's favour.
Jazz availed of the arbitration panel's offer
and sought clarification on a number of other issues. The
panel clarified that additional adjustments put forward by Jazz to
achieve a reasonable comparison in the arbitration were determined
to be appropriate. The panel also concluded that another
requested adjustment by Jazz requires further negotiations between
Air Canada and Jazz, failing which, the parties will submit new
proposals and analysis to the panel. As a consequence, the impact,
if any, to the mark-up on Jazz's controllable costs cannot be
stated at this time with reasonable certainty. Chorus will provide
further information as soon as possible.
Caution regarding forward-looking
information
Certain statements in this news release may
contain statements which are forward-looking. These forward-looking
statements are identified by the use of terms and phrases such as
"anticipate", "believe", "could", "estimate", "expect", "intend",
"may", "plan", "predict", "project", "will", "would", and similar
terms and phrases, including references to assumptions. Such
statements may involve but are not limited to comments with respect
to strategies, expectations, planned operations or future
actions.
Forward-looking statements relate to analyses
and other information that are based on forecasts of future
results, estimates of amounts not yet determinable and other
uncertain events. Forward-looking statements, by their nature, are
based on assumptions, including those described below, and are
subject to important risks and uncertainties. Any forecasts or
forward-looking predictions or statements cannot be relied upon due
to, amongst other things, changing external events and general
uncertainties of the business. Such statements involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, performance or achievements to differ materially
from those expressed in the forward-looking statements. Results
indicated in forward-looking statements may differ materially from
actual results for a number of reasons, including without
limitation, risks relating to Chorus' relationship with Air Canada,
risks relating to the airline industry, energy prices, general
industry, market, credit, and economic conditions, competition,
insurance issues and costs, supply issues, war, terrorist attacks,
epidemic diseases, acts of God, changes in demand due to the
seasonal nature of the business, the ability to reduce operating
costs and employee counts, secure financing, employee relations,
labour negotiations or disputes, restructuring, pension issues,
currency exchange and interest rates, leverage and restructure
covenants in future indebtedness, dilution of Chorus shareholders,
uncertainty of dividend payments, managing growth, changes in laws,
adverse regulatory developments or proceedings, pending and future
litigation and actions by third parties. The forward-looking
statements contained in this discussion represent Chorus'
expectations as of October 4, 2012,
and are subject to change after such date. However, Chorus
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise, except as required under applicable
securities regulations.
About Chorus Aviation Inc.
Chorus Aviation Inc. ("Chorus") was incorporated
on September 27, 2010 and is a
dividend-paying holding company which owns Jazz Aviation LP, Chorus
Leasing I Inc., Chorus Leasing II Inc., and Chorus Leasing III Inc.
(the leasing companies own the Q400 aircraft) and 7503695 Canada
Inc.
Chorus is traded on the Toronto Stock Exchange
under the trading symbols of CHR.A, CHR.B and CHR.DB.
For more information, visit
www.chorusaviation.ca
About Jazz Aviation LP
Jazz Aviation LP has a strong history in Canadian aviation with
its roots going back to the 1930s. Jazz is wholly owned by Chorus
Aviation Inc. and continues to generate some of the strongest
operational and financial results in the North American aviation
industry.
There are two airline divisions operated by Jazz Aviation
LP: Air Canada Express and Jazz.
Air Canada Express: 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 over 860 departures per weekday to 84
destinations in Canada and in
the United States with a fleet of
Canadian-made Bombardier aircraft.
Jazz: Under the Jazz brand, the airline offers charters
throughout North America with a
dedicated fleet of five Bombardier aircraft for corporate clients,
governments, special interest groups and individuals seeking more
convenience. Jazz also has the ability to offer airline
operators services such as ground handling, dispatching, flight
load planning, training and consulting.
For more information, visit www.flyjazz.ca.
SOURCE CHORUS AVIATION INC.
