The transaction involves the conversion to firm orders of six of the 15 aircraft options taken by Jazz with its original order for 15 Q400 NextGen airliners, announced on 30th April 2010. Jazz will operate the aircraft under the Air Canada Express banner.
Based on the list price of the Q400 NextGen aircraft, the order is valued at approximately $189 million US.
“We just took delivery of our 15thQ400 aircraft and we are very pleased to set in motion the acquisition of the next batch of aircraft to continue the modernization of the Jazz Aviation fleet serving our customer Air Canada and its passengers,” said Joseph Randell, President and Chief Executive Officer, Jazz Aviation LP.
“The Q400 NextGen airliner is a perfect complement to our fleet of Bombardier turboprops and regional jets and has served us extremely well from coast to coast on routes in Canada and the United States.”
“Jazz has the distinction of being Canada’s largest regional airline serving over 80 destinations in Canada and the United States. Its selection of the Q400 NextGen turboprop is an endorsement of the aircraft’s unparalleled performance in short- and medium-haul regional airline service,” said Mike Arcamone, President, Bombardier Commercial Aircraft.
“Airlines around the world are enjoying the full potential of this high-performance aircraft for regional operations in the 70- to 80-seat segment.”
Jazz, which exclusively flies Bombardier aircraft and is the world’s largest operator of Dash 8/Q-Series aircraft, accepted Bombardier’s milestone 400thQ400 aircraft in June 2012. The carrier’s current fleet includes 80Dash 8/Q-Series turboprops and 51 CRJ Series regional jets. Jazz is the second largest airline in Canada in terms of fleet size and number of routes flown and forms an integral part of Air Canada’s domestic and Canada-U.S. transborder market presence and strategy.
The new airliners will be leased via a Chorus leasing company to Jazz. The purchase is supported by a third party lender under terms similar to the original order of 15 Q400 aircraft. The transaction is anticipated to be accretive to Chorus’ consolidated operating results. As required under the purchase agreement, Chorus has made pre-delivery payments of approximately $13 million USD which have been funded from current cash balances and will not impact Chorus’ current dividend policy.
Including the Chorus Aviation order, Bombardier has booked firm orders for 434 Q400 and Q400 NextGenairliners and delivered aircraft are in service with approximately 40 operators in 30 countries, on six continents. These aircraft have transported more than 177 million passengers and have logged more than 3.2 million flight hours and over 3.5 million take-offs and landings.