Category Archives: Air Canada Express

Air Canada outlines its new North American growth routes

Air Canada (Montreal) today announced additional details of its previously stated plans for profitable growth. Strategic enhancements include expanding its North American route network with the addition of new nonstop services from Calgary-Terrace; Calgary-Nanaimo; Vancouver-Comox; Toronto-Austin and Montreal-Mexico City. Air Canada is also increasing capacity on key domestic markets that have high volumes of leisure traffic with the expansion of Air Canada rouge to operate the airline’s new seasonal Calgary-Halifax route and current Toronto-Kelowna and Toronto-Sydney, NS services. New services are now available for purchase at http://www.aircanada.com.

“Air Canada continues to strategically add new routes in response to the strong demand in Western Canada, notably the growing business market between Calgary and Terrace/Kitimat in Northern BC, the increasing demand to and from Vancouver Island, and the continued travel demand between Western Canada and Atlantic Canada,” said Benjamin Smith, President, Passenger Airlines.

Air Canada is returning to Austin, Texas from Toronto and to Mexico City from Montreal.

Highlights of Air Canada’s 2015 North American summer schedule enhancements include:

Calgary-Terrace

New daily, year-round Air Canada Express service starts June 1, 2015 operated by Jazz Aviation LP with 50-seat Bombardier CRJ jets.

Calgary-Nanaimo

New daily, year-round Air Canada Express service starts May 1, 2015 operated by Jazz Aviation LP with 74-seat Bombardier Q400 aircraft.

Calgary-Halifax

New summer seasonal six times weekly service starts May 1, 2015 operated by Air Canada rouge with 136-seat Airbus A319 aircraft offering both premium and economy cabins of service, increasing up to ten weekly flights during peak summer period.

Vancouver-Comox

New twice daily, year-round Air Canada Express service starts May 1, 2015 operated by Jazz Aviation LP with 50-seat Bombardier Dash 8-300 aircraft.

Kelowna-Toronto

More than 40 per cent increased capacity year-over-year starting June 1, 2015 with up to daily service during peak summer, deployment of 136-seat Air Canada rouge Airbus A319 aircraft offering both premium and economy cabins of service, following the transfer of this route from Air Canada.

Toronto-Austin

New daily, year-round Air Canada Express service starts May 18, 2015 operated by Jazz Aviation LP with 75-seat CRJ705 aircraft offering both premium and economy cabins of service.

Toronto-Sarasota/Bradenton

Winter seasonal service extended effective May 2 offering the only non-stop, year-round flights between Toronto and Sarasota/Bradenton, operated twice weekly by Air Canada with 97-seat Embraer 190 jets offering both premium and economy cabins of service.

Toronto-Sydney, NS

More than 40 per cent increased capacity year-over-year starting May 1 with daily deployment of 136-seat Air Canada rouge Airbus A319 aircraft offering both premium and economy cabins of service, following the seasonal transfer of this route from Air Canada.

Montreal-Mexico City

New, up to five times weekly, summer seasonal service starts May 2 operated by Air Canada rouge, with 136-seat Airbus A319 aircraft offering both premium and economy cabins of service.

Ottawa-Fort Lauderdale/Hollywood

Seasonal service now extended to year-round, operated twice weekly by Air Canada with 97-seat Embraer 190 jets offering both premium and economy cabins of service.

In addition, starting in May 2015, Air Canada will transfer to Air Canada rouge its Calgary-Varadero and Montreal-Varadero routes which will be operated with 142-seat Airbus A319 aircraft, as well as its Montreal-Martinique route operated with 136-seat Airbus A319 offering both premium and economy cabins of service.

Copyright Photo: SM Fitzwilliams Collection/AirlinersGallery.com. Airbus A319-112 C-GITP (msn 1562) arrives in Shannon, Ireland.

Air Canada aircraft slide show:

Four injured in an Air Canada Express (Jazz Aviation) Q400 accident at Edmonton

Jazz Aviation (Halifax) (Air Canada Express) flight AC 8481 from Calgary to Grande Prairie with 71 passengers and four crew members suffered a right landing gear collapse when it attempted an emergency landing on runway 02 at Edmonton International Airport. Four passengers sustained injuries while landing and were transported to local hospitals. The aircraft came to a rest on its right wing. The aircraft involved was Bombardier DHC-8-402 (Q400) C-GGBF (msn 4433). The turboprop reportedly suffered a blown tire on takeoff at Calgary and the flight crew decided to divert to and attempt the emergency landing at Edmonton due to strong cross winds at Calgary. The propeller sliced through the fuselage narrowly missing a passenger on landing.

Jazz Aviation issued this statement:

A Jazz Aviation LP Q400 aircraft, operating as Air Canada Express, was involved in an incident at Edmonton International Airport at 8:30 p.m. Central Mountain Time.

Jazz flight AC 8481 was en route to Grande Prairie from Calgary. The passenger list indicates the aircraft was carrying 71 passengers and four crew members.

Four passengers have been transported to Edmonton-area hospitals and the extent of their injuries cannot be confirmed at this time. All other passengers and crew members have been evaluated by medical responders on the scene and released.

Passengers are being taken care of by Air Canada and a Jazz team is on its way to the scene.

Air Canada to launch seasonal flights from Toronto to Mont-Tremblant, Quebec

Air Canada (Montreal) announced today that it will introduce nonstop flights between Toronto (Pearson) and Mont-Tremblant, Quebec. Service to Mont-Tremblant will be operated four times per week by Air Canada Express (Jazz Aviation) with 74-seat Bombardier DHC-8-402 (Q400) aircraft. Flights will operate between December 18, 2014 and March 30, 2015 during peak winter skiing season.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Jazz Aviation’s Bombardier DHC-8-402 (Q400) C-GGMI (msn 4413) in the Air Canada Express markings rests between flights at Vancouver International Airport (YVR).

Air Canada:

Air Canada Express-Jazz:

Video by JustPlanes on Jazz Aviation:

Air Canada Express-Jazz Route Map:

Jazz Aviation’s parent, Chorus Aviation, posts a higher 2Q net profit of $36.5 million

Chorus Aviation (Halifax), the parent of Jazz Aviation (Air Canada Express) (Halifax), reported a second quarter net profit of C$36.5 million ($33.5 million). This basically quadruples its second quarter 2013 net income of C$7.9 million (&.2 million) of the previous year.

Here is the full report:

For the second quarter 2014, Chorus reported EBITDA of $50.7 million compared to $48.0 million in the same quarter 2013, an increase of $2.7 million. Operating income was $34.3 million, $2.6 million higher than the same period 2013. Adjusted net income of $22.2 million or $0.18 per basic share was up by $0.8 million or $0.01 per basic share over the second quarter 2013. Chorus incurred $4.5 million in employee separation program costs in the second quarter versus $2.2 million in the same period in 2013. Chorus has invested $17.2 million in employee separation since the inception of this cost savings program in the first quarter of 2013.

For reporting purposes, at each quarter end, Chorus converts its US denominated aircraft debt into equivalent Canadian dollars based on the prevailing exchange rate. Chorus manages its exposure to currency risk on such long-term debt by billing related lease payments within the Capacity Purchase Agreement (‘CPA’) with Air Canada in the underlying currency (US dollars) related to the aircraft debt. In the second quarter of 2014, Chorus had an unrealized foreign exchange gain of $14.3 million versus an unrealized foreign exchange loss of $13.5 million in the same period of 2013.

Financial Performance –Second Quarter 2014 Compared to Second Quarter 2013

Operating revenue increased from $410.3 million to $417.8 million, representing an increase of $7.5 million or 1.8%. Controllable revenue increased by $9.0 million or 3.5%. This increase occurred primarily as a result of rate increases made pursuant to the CPA of $5.8 million, a favourable US dollar exchange rate of $5.2 million, and a $0.3 million increase in incentives earned under the CPA with Air Canada. These increases were offset by decreased CPA Billable Block Hours of $2.3 million.

Pass-through revenue decreased by $2.1 million or 1.4% from $148.7 million to $146.6 million, which included a decrease of $8.7 million related to airport and navigation fees and terminal handling services. (Effective January 1, 2014, Air Canada entered into a commercial agreement with the Greater Toronto Airport Authority (‘GTAA’) that encompasses Chorus’ Air Canada Express operations. GTAA costs related to landing, terminal and other airport user fees, which are treated as pass-through costs under the CPA, are now paid directly by Air Canada pursuant to this agreement.) This decrease was offset by an increase of $7.3 million related to fuel costs driven primarily by an increase in jet fuel prices. The sale of consignment inventory was the primary factor in other revenue increasing by $0.6 million.

Operating expenses increased from $378.6 million to $383.6 million, an increase of $5.0 million. Controllable costs increased from $229.9 million to $237.0 million, an increase of $7.0 million or 3.1%. Pass-through costs decreased from $148.7 million to $146.6 million, a decrease of $2.1 million or 1.4%.

Salaries, wages and benefits increased by $2.7 million from $100.7 million to $103.4 million. Adjusted salaries, wages and benefits (adjusted by removing employee separation program costs and capitalized major maintenance overhaul labour costs), which includes pension, incentive compensation and other employee benefits, decreased by $0.9 million after incurring an increase in stock based compensation of $0.8 million due to a change in accounting policy. Employee separation program costs incurred during the three months ended June 30, 2014 were $4.5 million, an increase of $2.3 million over the same period of 2013. These costs include employee separation program costs of $2.1 million in 2014 related to the commencement of outsourcing of passenger handling services under applicable collective agreements. Salaries and wages were also affected by fewer labour costs being capitalized as a result of reduced major maintenance overhauls on owned aircraft of $1.4 million.

Aircraft maintenance expense increased by $4.0 million from $37.9 million to $41.9 million partially as a result of an unfavourable US dollar exchange rate on certain maintenance material purchases of $2.7 million and increased other maintenance costs of $2.6 million. These increases were offset by decreased Block Hours of $1.3 million.

Other expenses decreased by $0.8 million from $32.0 million to $31.2 million. The decrease was the result of reduced general overhead expenses.

Non-operating income increased by $27.8 million from a non-operating expense of $19.2 million to a non-operating income of $8.6 million. The strengthening of the Canadian dollar during the quarter contributed to a foreign exchange gain of $11.8 million compared to a foreign exchange loss of $13.0 million in the same period last year. During the quarter, Chorus redeemed the remaining balance of the convertible debentures, which accounted for a decrease in interest accretion of $0.3 million and a decrease in interest expense of $1.5 million. Interest expense related to long-term debt decreased by $0.8 million due to planned principal repayments. Chorus met employment conditions required in order to obtain the maximum annual forgiveness of a portion of the forgivable loan from the province of Nova Scotia, and as such $0.5 million was recorded in other income.

EBITDA was $50.7 million compared to $48.0 million in 2013, an increase of $2.7 million or 5.7%, producing an EBITDA margin of 12.1%.

Operating income of $34.3 million was up $2.6 million or 8.1% over second quarter 2013 from $31.7 million.

Net income for the second quarter of 2014 was $36.5 million or $0.30 per basic share, an increase of $28.6 million from $7.9 million. On an adjusted basis, net income was $22.2 million or $0.18 per basic share, an increase of $0.8 million from $21.4 million. A reconciliation of these non-GAAP measures to their nearest GAAP measure is provided in Chorus’ Management’s Discussion and Analysis dated August 13, 2014.

Copyright Photo: TMK Photography/AirlinersGallery.com. Bombardier CRJ705 (CL-600-2D15) C-GLJZ (msn 15051) approaches the runway at Toronto’s Lester B. Pearson International Airport (YYZ).

Air Canada Express-Jazz Aviation:

Chorus Aviation reports on its profitable first quarter

Chorus Aviation (Halifax), the parent of Jazz Aviation (Air Canada Express) (Halifax), reported the following for the first quarter:

For the first quarter 2014, Chorus Aviation reported EBITDA of $47.3 million compared to $34.2 million in the same quarter 2013, an increase of $13.1 million. Operating income was $31.2 million, $10.4 million higher than the same period 2013. Adjusted net income of $20.3 million or $0.17 per basic share, was up by $5.6 million or $0.05 per basic share over first quarter 2013. Chorus incurred $2.8 million in voluntary employee severance in the first quarter versus $5.7 million in the same period in 2013. Chorus has invested $12.7 million since the inception of this cost savings program in the first quarter of 2013.

Net income for the first quarter of 2014 was $5.6 million or $0.05 per basic share, a decrease of $3.6 million from $9.2 million. On an adjusted basis, net income was $20.3 million or $0.17 per basic share, an increase of $5.6 million from $14.7 million. A reconciliation of these non-GAAP measures to their nearest GAAP measure is provided in Chorus’ Management’s Discussion and Analysis dated May 14, 2014.

Chorus Aviation is a dividend-paying holding company which owns Jazz Aviation LP and a number of other companies involved in aviation related businesses.

Read the full report: CLICK HERE

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Bombardier DHC-8-311 (Q300) C-GABP (msn 257) of Jazz Aviation (Air Canada Express) touches down at Seattle-Tacoma International Airport (SEA).

Jazz Aviation:

Jazz Aviation DHC-8-300 lands safely after an engine fire

Jazz Aviation (Air Canada Express) (formerly Air Canada Jazz) (Halifax) Bombardier DHC-8-300 operating a passenger flight from Nanaimo on Vancouver Island to Vancouver experienced an engine fire yesterday (December 12). According to Reuters, “Shortly after the Jazz DHC 8-300 aircraft took off from Nanaimo, on Vancouver Island, the crew was notified of an engine oil issue and flames were seen near one of the engines, Air Canada Jazz said in an emailed statement.

The crew released fire retardant into the engine housing and were able to extinguish the flames. The aircraft, which had 35 passengers and three crew members on board, then returned to Nanaimo, where it was met by emergency vehicles.”

Read the full report: CLICK HERE

Copyright Photo: Ton Jochems/AirlinersGallery.com. Jazz Aviation’s Bombardier DHC-8-301 (Q300) C-GKTA (msn 124) is seen at the Vancouver hub.

Air Canada Express-Jazz Aviation:

Air Georgian to have an expanded role with Air Canada with CRJs

Air Georgian (Air Canada Express) (Toronto-Pearson) will soon have an expanded role with Air Canada with a transferred fleet of Canadair Regional Jets (CRJs).

Air Canada issued this statement:

Following a previously announced Request for Proposals (RFP), Air Canada has announced that it has signed an MOU to expand its relationship and amend its capacity purchase agreement (CPA) with Air Georgian. Air Georgian has been selected to operate a number of additional regional routes including trans-border routes in mid-2014 using Canadair Regional Jet aircraft.

“We are pleased to expand our longstanding commercial relationship with Air Georgian that will allow Air Canada to introduce more cost-competitive operations in a number of our key regional markets,” said Kevin Howlett , Air Canada’s Senior Vice President, Regional Markets. “The competitive bid process generated a significant level of response from a number of Canadian and U.S. regional operators. Following a thorough evaluation of proposals received, Air Georgian was selected on the basis of a broad range of criteria including operational safety, efficiency, cost and service. The award of additional flying to Air Georgian is an important step in our regional airline diversification strategy and ongoing cost transformation program.”

“We are excited with this opportunity to expand Air Georgian’s presence as an Air Canada Express regional operator beginning in 2014,” said Eric Edmondson , President of Air Georgian. “The selection of Air Georgian for this expanded role is based on our proven ability to offer seamless connections and service for Air Canada customers that is of mutual benefit for both airlines. We look forward to continuing to expand our relationship, building on our solid partnership with Air Canada that has developed over the past 13 years.”

The implementation of the amendment to the CPA remains subject to the parties making any necessary filings, obtaining regulatory approvals and finalizing documentation.

Air Canada currently has capacity purchase agreements with four regional airline partners that operate under the banner Air Canada Express: Jazz, Sky Regional, Air Georgian and EVAS.

Air Georgian became a Tier III partner of Air Canada in 2000, operating as Air Alliance under a CPA. Today Air Georgian operates under the brand Air Canada Express, focusing on transborder and domestic airline operations carrying over 350,000 passengers per year for Air Canada from Toronto’s Pearson International Airport, Montreal’s Pierre Elliott Trudeau International Airport, Halifax’s Robert L. Stanfield International Airport and Calgary’s International Airport to 19 Canadian and U.S. destinations.

Air Georgian has been providing aviation services and charter flight solutions for more than 25 years. Air Georgian also operates and/or maintains a fleet of corporate jets from its base in Toronto. Air Georgian is an IATA registered airline and recently achieved the coveted ARGUS Platinum Audit Rating along with IS-BAO Stage 1 registration.

Copyright Photo: Keith Burton/AirlinersGallery.com. Air Georgian currently operates 16 Beechcraft (Raytheon) 1900D turboprops. 1900D C-GORC (msn UE-320) arrives back at the Toronto (Pearson) hub.

Air Canada Express-Air Georgian:

Current Air Canada Express routes operated for Air Canada:

Air Canada seeks a new Air Canada Express regional partner for trans-border routes

Air Canada (Montreal) today announced that it will undertake a Request for Proposal (RFP) process to select a new regional airline to operate certain existing U.S. regional trans-border routes, starting in mid-2014. Select Canadian and U.S. regional carriers will be invited to participate in the RFP process and submit their respective pricing and other terms and conditions of carriage.

“The launch of a request for proposals is an important next step in our regional airline diversification strategy and ongoing cost transformation program,” said Kevin Howlett , Senior Vice President, Regional Markets. “Over the past two years, Air Canada has made significant changes to its strategy and relationship with its regional partners, now all operating under the Air Canada Express banner. Most recently, we transferred the operation of our Embraer 175 aircraft to a regional carrier whose cost structure is more in line with the U.S. regional carriers, and as low cost operators continue to grow in the rapidly evolving North American regional markets, it is critical for Air Canada to take the necessary steps to ensure its cost structure in these markets is also competitive.”

Air Canada currently has capacity purchase agreements with four regional airline partners: Jazz, Sky Regional, Air Georgian and EVAS.

Air Canada:

Air Georgian and Regional 1 Airlines sign MOU to merge

Air Georgian Limited (AGL) (Air Canada Express) (Toronto-Pearson) has signed a memorandum of understanding (MOU) with Regional 1 Airlines (R1) (Calgary), a subsidiary of Avmax Group Inc., a fully integrated aviation company with operations in Canada, United States, Africa and Afghanistan. Regional 1 Airlines and Air Georgian Limited will merge operations under one management team through the creation of a parent holding company.

Air Georgian will continue to focus primarily on its CPA relationship with Air Canada (Montreal). Air Georgian currently operates Beechcraft (Raytheon) 1900D aircraft under the brand name of Air Canada Express. R1 will focus on expanding its domestic presence, specializing in serving the natural resource sector. R1 will further expand upon its existing international operations, specializing in ACMI contracts in remote regions, as well as continuing to support the United Nations World Food Program and other peacekeeping and humanitarian programs.

This strategic merger will allow the new combined entity to position itself as a unique, fully integrated airline leveraging the technical, geographical and asset strengths of Avmax and the professional management and strong operational background of Air Georgian. Air Georgian and Regional 1 Airlines will benefit from having access to the world’s largest private fleet of Dash 8 and CRJ series aircraft, over $100 million in spare parts and domestic maintenance bases in Halifax, Montreal, Kingston, Toronto, Calgary and Vancouver. International operations will be supported through Avmax maintenance bases in Great Falls, Montana, Jacksonville, Florida, Nairobi, Kenya and N’djamena, Chad in Africa.

Eric Edmondson will assume the President and CEO role at the newly formed parent company, as well as the role of President at both Air Georgian and Regional 1 Airlines. Daniel Revell will continue to be the CEO of Air Georgian and John Binder will continue in his role as CEO of Regional 1 Airlines. Scott Monsen will become the CFO & VP Finance at the parent company and its subsidiaries. Daniel Bockner will be the VP, Flight Operations & Security, while Brad Warren will fill the role of VP, Maintenance & Technical. Rick Giacomuzzi will hold the position of VP, Finance at Regional 1 Airlines. This merger does not impact the current structure or operations of any other subsidiary within AvMax Group Inc.

Upon closing, the combined operations will utilize Beechcraft 1900D, de Havilland Canada (Bombardier) DHC-8-100, DHC-8-300 and CRJ100/200 aircraft types, with the ability to quickly add additional larger gauge aircraft types with the long term goal of positioning the brands as major players in the 18-76 seat turbo-prop and jet market. Air Georgian will continue to operate, maintain and support the corporate jet charter market in Toronto as well as offering third-party training to the airline and corporate aviation sectors.

Copyright Photo: TMK Photography/AirlinersGallery.com. Beechcraft (Raytheon) 1900D C-GORA (msn UE-326) taxies at the Toronto (Pearson) hub in the Air Canada Express livery.

Air Canada Express/Air Georgian:

Air Canada completes the transfer of Embraer 175s to Sky Regional Airlines

Air Canada (Montreal) announced it has successfully completed the transfer of all 15 of its Embraer 175 aircraft, the smallest jet aircraft in Air Canada’s fleet, to Sky Regional Airlines (Air Canada Regional) (Montreal-Trudeau) to operate the aircraft on behalf of Air Canada under the capacity purchase agreement between the parties. Sky Regional now operates 20 aircraft on behalf of Air Canada , under this agreement.

Sky Regional has been an Air Canada Express partner since May 2011 , operating service between Billy Bishop Toronto City Airport and Montreal Trudeau Airport with a fleet of Bombardier DHC-8-402 (Q400) turboprop aircraft. Since March 2013 , Sky Regional has been phasing in the operation of a fleet of Embraer 175 regional jet aircraft on existing Air Canada short-haul regional routes, primarily from Toronto and Montreal to destinations in the northeast United States including New York (La Guardia), Newark, Boston, Philadelphia, Chicago (O’Hare) and Dallas/Fort Worth, under the Air Canada Express banner. Sky Regional currently employs approximately 550 people and is the sole Air Canada Express operator serving Billy Bishop Toronto City, Philadelphia, Chicago (O’Hare) and Dallas/Fort Worth airports.

In addition to Sky Regional, Air Canada has capacity purchase agreements with its other regional airline partners, Jazz, Air Georgian and EVAS, that operate regional Air Canada Express flights on behalf of Air Canada.

Copyright Photo: Brian McDonough/AirlinersGallery.com. Formerly operated by Air Canada, Embraer ERJ 170-200SU (ERJ 175) C-FEKI (msn 1700103) completes the River Approach into Washington’s Reagan National Airport.

Air Canada:

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Air Canada Express-Sky Regional Airlines: