Category Archives: Air Canada Express

Bombardier sells nine CRJ900 aircraft to Chorus Aviation, Jazz to become the first Canadian operator of the ATMOSPHÈRE cabin

Air Canada Express-Jazz Aviation Bombardier CRJ900 (CL-600-2D24) C-GDJZ (msn 15049) DCA (Brian McDonough). Image: 941182.

Bombardier Commercial Aircraft announced today that a subsidiary of Chorus Aviation Inc. has finalized a firm purchase agreement for nine CRJ900 aircraft. These aircraft will be operated by Jazz Aviation LP, a subsidiary of Chorus Aviation, under the Air Canada Express banner, making them the first Canadian operator of the new ATMOSPHÈRE cabin for CRJ Series regional jets.

Based on the list price of the CRJ900 aircraft, the order is valued at approximately $437 million U.S.

Jazz, under the Air Canada Express brand, will operate the CRJ900 in a dual-class cabin configuration with 76 seats. The airline intends to take delivery of their first aircraft with the latest enhancement to the CRJ Series regional jets – the ATMOSPHÈRE cabin in the first half of 2020.

About the ATMOSPHÈRE Cabin

The new ATMOSPHÈRE cabin (below) sets new standards of passenger experience in the regional jet market segment. Key features of the new interior are comprised of larger passenger living space, wheel-first roller bag capability, more spacious lavatory, increased cabin connectivity options, all integrated in a contemporary design and material choices. In fact, the ATMOSPHÈRE cabin design allows passengers to carry and store an “oversized” roller bag within the aircraft cabin bins which minimizes the need to check bags at the counter or the gate.

Top Copyright Photo: Air Canada Express-Jazz Aviation Bombardier CRJ900 (CL-600-2D24) C-GDJZ (msn 15049) DCA (Brian McDonough). Image: 941182.

Air Canada Express-Jazz aircraft slide show:

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Air Canada and Chorus Aviation finalize amended and extended Capacity Purchase Agreement for Jazz

Air Canada and Chorus Aviation Inc., parent company of Jazz Aviation LP, today confirmed that all conditions have been met and the previously announced amendment and extension of the Capacity Purchase Agreement (CPA) between Air Canada and Jazz has become effective.  As announced on January 14, 2019, the improved CPA is effective retroactively as of January 1, 2019 and extends to December 31, 2035.

As part of the agreement to amend the CPA, Air Canada has also completed the $97.26 million equity investment in Chorus previously announced on January 14, 2019. Air Canada has acquired 15,561,600 Class B Voting Shares in the capital of Chorus, representing approximately 9.99% of the issued and outstanding Class A Variable Voting Shares and Class B Voting Shares of Chorus on a combined basis.

Highlights of the CPA Amendment

  • With this amendment, the parties will effectively address increased domestic and international competition, changing market demand, and fluctuating fuel prices, through significant changes that will modernize and up-gauge the fleet.
  • In total, the 17-year contract will provide Jazz $2.5 billion in minimum contracted revenues, of which $1.6 billion, or 65%, will be generated from aircraft leasing revenue, supporting the continued transformation of Chorus’ business through the migration of CPA earnings to aircraft leasing. The amended CPA will provide for total incremental contracted revenue of $940 million; $310 million in fixed fees and $630 million in aircraft leasing under the CPA;
  • Projected annual savings to Air Canada of approximately $50 million in each of 2019 and 2020, and cumulative savings of approximately $53 million between 2021 and 2025, both as compared to the 2015 CPA frame-work (from both fixed fee and performance incentive reductions); Beyond 2025 – a market competitive fixed fee for the extension period. This supports Air Canada’s Cost Transformation Programs;
  • Chorus will secure preferred partner status on the operation of aircraft with up to 50 seats and Air Canada will consolidate its existing CRJ regional capacity into the Jazz operation;
  • Air Canada Deputy Chief Executive Officer and Chief Financial Officer, Michael Rousseau, will be appointed to the board of directors of Chorus.

In other news, Chorus Aviation Inc. has announced the pilots of its subsidiary, Jazz Aviation LP (‘Jazz’), have ratified the amendments to their collective agreement which was tentatively agreed on January 14, 2019. The Air Lines Pilots Association, International (‘ALPA’) represents Jazz’s pilots based in VancouverCalgaryToronto and Montreal.

Ratification of this tentative agreement was a condition of implementing the amendments to, and extension of, the capacity purchase agreement (‘CPA’) between Air Canada and Jazz, as announced on January 14, 2019. The amendment and extension of the CPA remains subject to completion of Air Canada’s $97.26 million equity investment in Chorus, which contains customary conditions to closing. Chorus anticipates closing the equity investment by no later than February 8, 2019, upon which the amendment and extension of the CPA will become effective.

The pending amendments to the CPA provide for a number of significant benefits including fleet modernization with the addition of 14 larger-gauge CRJ900 (76-seat) aircraft of which nine new aircraft will generate additional lease revenue under the CPA.

Air Canada will consolidate more of its overall regional capacity in the Jazz operation. Chorus will also secure preferred partner status on the operation of aircraft with up to 50 seats through a right to match third-party offers.  Additionally, an enhanced pilot mobility agreement will provide Jazz pilots access to careers at Air Canada. The amended CPA will ensure that Chorus and Air Canada are well positioned to respond as allies to an ever-changing industry.

Air Canada announces improvements to the Capacity Purchase Agreement with Jazz Aviation LP, Jazz will grow and get bigger aircraft

Air Canada Express-Jazz Aviation Bombardier CRJ200 (CL-600-2B19) C-FEJA (msn 7983) BWI (Tony Storck). Image: 944193.

Air Canada today announced an agreement to amend and extend the Capacity Purchase Agreement (CPA) with Jazz Aviation LP, a wholly-owned subsidiary of Chorus Aviation Inc., under which Jazz currently operates certain regional Air Canada Express flights.

The amendments should provide long term stability for Chorus, reaffirming Jazz as Air Canada’s most significant Express carrier well into the future, as well as enabling growth on Chorus’ leasing business through Air Canada’s equity investment and the predictability of Jazz’s cashflow from CPA operations until 2035.  The amendments will bolster the strength and competitiveness of the Air Canada Express brand and its coast-to-coast regional network, and provide significant CPA savings for Air Canada, while optimizing network and fleet flexibility when compared to the current agreement.

Highlights of the CPA Amendments:

  • Extension of the CPA term by ten years from January 1, 2026 to December 31, 2035;
  • Simplification and modernization of the Jazz fleet with growth through more, larger gauge aircraft. The Amendments will include various minimum levels of covered aircraft at different points in time providing Air Canada the flexibility to optimize its fleet within its network strategy;
  • Continuance of a fixed fee structure, including new terms mitigating risk and market- oriented compensation to make the CPA more competitive given new competitors entering the market;
  • Projected annual savings to Air Canada of approximately $50 million in each of 2019 and 2020, and cumulative savings of approximately $53 million between 2021 and 2025, both as compared to the 2015 CPA frame-work (from both fixed fee and performance incentive reductions); Beyond 2025 – a market competitive fixed fee for the extension period. This supports Air Canada’s Cost Transformation Programs;
  • Continuation of a highly successful pilot mobility agreement that provides Air Canada Express pilots with access to pilot careers at Air Canada on a planned basis;
  • Air Canada will consolidate more of its overall regional capacity into Jazz’s footprint, thereby lowering Air Canada’s overall regional costs in the future;
  • The Amendments will be effective retroactively as at January 1, 2019, subject to a number of conditions, including completion of Air Canada’s equity investment in Chorus and ratification of a new tentative collective agreement between Jazz and the Air Line Pilots Association, International (ALPA), the union representing Jazz pilots.

Highlights of the Equity Investment:

  • Air Canada has agreed to subscribe for 15,561,600 Class B Voting Shares in the capital of Chorus, representing approximately 9.99% of the issued and outstanding Class A Variable Voting Shares and Class B Voting Shares of Chorus on a combined basis. This represents an investment of ~$97,260,000 by Air Canada;
  • The Chorus shares will be issued to Air Canada at a price of $6.25, representing a 5% premium to the five-day volume weighted average price of the shares as of the close of trading on Thursday, January 10, 2019;
  • Air Canada and Chorus will enter into an investor rights agreement under which, among other things, Air Canada will hold the investment shares, for a period of at least 60 months and will participate in Chorus’ dividend reinvestment plan and agree to customary standstill provisions, subject to certain limited exceptions;
  • On closing of the equity investment, Deputy Chief Executive Officer and Chief Financial Officer of Air Canada, Michael Rousseau, will be appointed to the board of directors of Chorus.

Air Canada does not intend to provide further comment pending the ratification process in respect of the tentative agreement between Jazz and ALPA; a news release updating the market will be issued when all the closing conditions to the completion of the foregoing transactions are met.

Fleet:

Top Copyright Photo: Air Canada Express-Jazz Aviation Bombardier CRJ200 (CL-600-2B19) C-FEJA (msn 7983) BWI (Tony Storck). Image: 944193.

Air Canada Regional-Jazz aircraft slide show:

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Air Canada expands in North Carolina with a new route and enhanced services from Raleigh/Durham and Charlotte

Air Canada Express (Sky Regional Airlines) Embraer ERJ 170-200SU (ERJ 175) C-FRQM (msn 17000137) BWI (Brian McDonough). Image: 942608.

Air Canada announced today it will enhance services to North Carolina beginning next spring, including with the launch of a new, nonstop daily flight between Raleigh/Durham and Montreal.

The airline will also deploy larger aircraft on flights between Toronto and Raleigh/Durham and Charlotte to increase capacity on these routes and introduce Business Class service.

New RaleighMontreal daily, nonstop service begins June 3, 2019 using a 50-seat Canadair Regional Jet (CRJ200).

From Toronto, starting May 1, 2019, three-times daily flights to Raleigh and twice-daily service to Charlotte will be upgauged to a 76-seat, Embraer E175 from a CRJ.

Flight

Departs

Arrives

Flight

Departs

Arrives

AC7691

Toronto 8:20

Raleigh 10:08

AC7692

Raleigh 06:00

Toronto 07:56

AC7693

Toronto 16:05

Raleigh 17:53

AC7694

Raleigh 10:45

Toronto 12:41

AC7695

Toronto 20:55

Raleigh 22:43

AC7696

Raleigh 18:30

Toronto 20:26

AC7582

Toronto 09:05

Charlotte 11:04

AC7583

Charlotte 11:40

Toronto 13:38

AC7584

Toronto 16:00

Charlotte 17:59

AC7585

Charlotte 18:35

Toronto 20:33

AC8178

Montreal 13:35

Raleigh 15:45

AC8179

Raleigh 16:15

Montreal 18:20

Top Copyright Photo: Air Canada Express (Sky Regional Airlines) Embraer ERJ 170-200SU (ERJ 175) C-FRQM (msn 17000137) BWI (Brian McDonough). Image: 942608.

Air Canada Express-Sky Regional aircraft slide show:

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Air Canada launches daily nonstop flights linking Edmonton and San Francisco

Air Canada Express-Jazz Aviation Bombardier CRJ900 (CL-600-2D24) C-GJZV (msn 15424) YYC (Chris Sands). Image: 940859.

Air Canada on May 1 inaugurated nonstop daily flights between Edmonton and San Francisco, operated by Jazz Aviation.

 

Air Canada’s EdmontonSan Francisco daily non-stop, year-round flights are operated onboard Bombardier CRJ900 jets offering a choice of 12 Business Class seats and 64 Economy Class seats, wi-fi, and features Air Canada’s in-flight entertainment on personal touch-screens at every seat.

Flights have been timed to connect conveniently with Air Canada’s regional flight network in Edmonton and with Star Alliance partner United Airlines in San Francisco, as well as providing for Aeroplan accumulation and redemption, Star Alliance reciprocal benefits, and for eligible customers, priority check-in, Maple Leaf Lounge access at Edmonton, priority boarding and other benefits.

 

Flight #

Routing

Departs

Arrives

AC8743

Edmonton-San Francisco

4:20 p.m.

6:20 p.m.

AC8744

San Francisco-Edmonton

12:00 p m.

3:45 p.m.

Copyright Photo: Air Canada Express-Jazz Aviation Bombardier CRJ900 (CL-600-2D24) C-GJZV (msn 15424) YYC (Chris Sands). Image: 940859.

Air Canada Express-Jazz aircraft slide show:

 

Air Canada to launch daily nonstop Montreal-London, Ontario and Montreal-Windsor, Ontario flights

The first Air Canada Express Bombardier Q400 in the new livery

Air Canada today announced it will begin new domestic regional nonstop flights on July 2, 2018.  The only year-round service between MontrealLondon, ON and MontrealWindsor, ON will provide services that meets the needs of both local and connecting passengers. Flights are timed to offer convenient connections to/from Atlantic Canada including Saint John, Fredericton, Moncton Halifax and St. John’s; to Europe including Brussels, Rome, Geneva, Barcelona, Lisbon, Paris, Lyon, Frankfurt, as well as Casablanca, Morocco.

Daily MontrealWindsor, Ontario flights will be operated by Air Canada Express Jazz 50-seat Bombardier CRJ jets. The schedule for the flights is:

Flight #

Depart

Time

Arrive

Time

AC8183

Montreal

08:50

Windsor, ON

10:39

AC8184

Windsor, ON

11:10

Montreal

12:55

Daily MontrealLondon, Ontario flights will be operated by Air Canada Express Jazz 78-seat Bombardier Q400 aircraft. The schedule for the flights is:

Flight #

Depart

Time

Arrive

Time

AC8665

Montreal

13:50

London, ON

15:37

AC8664

London, ON

15:20

Montreal

16:49

 

Copyright Photo: Air Canada Express-Jazz Aviation Bombardier DHC-8-402 (Q400) C-GGOY (msn 4365) YYZ (TMK Photography). Image: 940839.

Air Canada Express-Jazz aircraft slide show:

Air Canada to launch new domestic western regional routes, Vancouver – Delhi route to become year-round

Air Canada Express-Jazz Aviation Bombardier DHC-8-402 (Q400) C-GGNW (msn 4388) YYC (Chris Sands). Image: 925782.

Air Canada has announced it will begin new domestic regional nonstop flights on July 2, 2018.

“We are pleased to offer new nonstop flights onboard our Bombardier Q400s between popular BC and Alberta cities as we continue to strategically expand our already extensive domestic network,” said Benjamin Smith, President, Passenger Airlines at Air Canada. “With the continued growth at several communities on Vancouver Island and in the BC Okanagan, we see the opportunity to add new nonstop services and provide additional convenient travel options.”

“With Alberta being such a key market, the new direct flights into Kelowna, Victoria and Comox are great news for British Columbia’s visitor economy,” said Walt Judas, CEO of the Tourism Industry Association of British Columbia. “Air Canada’scommitment to servicing these routes is not only a huge boost for the individual communities, it is also a major benefit for the Thompson Okanagan and Vancouver Island regions as a whole.”

Top Copyright Photo: Air Canada Express-Jazz Aviation Bombardier DHC-8-402 (Q400) C-GGNW (msn 4388) YYC (Chris Sands). Image: 925782.

Air Canada Express-Jazz Aviation aircraft slide show:

Route and frequency

Flight

Departs

Arrives

Edmonton-Kelowna – year-round

AC8395 YEG-YLW

Edmonton at 08:40

Kelowna at 08:59

AC8403 YEG-YLW

Edmonton at 16:05

Kelowna at 16:24

Kelowna-Edmonton – year-round

AC8394 YLW-YEG

Kelowna at 09:30

Edmonton at 11:51

AC8404 YLW-YEG

Kelowna at 16:55

Edmonton at 19:16

Edmonton-Victoria – seasonal

AC8095 YEG-YYJ

Edmonton at 08:40

Victoria at 09:40

AC8053 YEG-YYJ

Edmonton at 16:00

Victoria at 17:00

Victoria-Edmonton – seasonal

AC8086 YYJ-YEG

Victoria at 10:10

Edmonton at 12:55

AC8088 YYJ-YEG

Victoria at 17:30

Edmonton at 20:15

Calgary-Comox – seasonal

AC8362 YYC-YQQ

Calgary at 10:05

Comox at 10:58

AC8361 YQQ-YYC

Comox at 11:30

Calgary at 14:14

 

These new routes complement Air Canada’s previously announced new nonstop North America routes beginning 2018:

  • Toronto to: Omaha, Providence, Nanaimo, Kamloops
  • Montreal to: Baltimore, Pittsburgh, Victoria
  • Edmonton to: San Francisco
  • Vancouver to: Sacramento

Air Canada will launch new international services in 2018 including:

  • Toronto to: Shannon (Ireland), Porto (Portugal), Zagreb (Croatia), Bucharest (Romania), Buenos Aires (Argentina)
  • Montreal to: TokyoNarita (Japan), Dublin (Ireland), Bucharest (Romania), Lisbon (Portugal)
  • Vancouver to: Paris (France), Zurich (Switzerland)

In other news, Air Canada also announced that its current seasonal nonstop VancouverDelhi flights will become year-round starting June 8, 2018.

First Boeing 777-300 in the new livery

Above Copyright Photo: The first Boeing 777-300 has now been repainted in the new livery. Air Canada Boeing 777-333 ER C-FITL (msn 35256) YYZ (TMK Photography). Image: 940829.

Air Canada aircraft slide show: