Seabury Delivered Financial and Strategic Advice to Ensure the Airline’s Long-Term Sustainability and Strengthen Its Competitive Position
New York – February 2, 2015 – Seabury Capital (“Seabury”), a leading global advisory and professional services firm, announced today that it has advised Canada-based Chorus Aviation Inc. (“Chorus”) on the successful completion of its new Capacity Purchase Agreement (“CPA”) with Air Canada and its wholly owned subsidiary Jazz Aviation LP (“Jazz”) with respect to the 11-year collective agreement with its pilots, represented by the Air Line Pilots Association (“ALPA”).
“Seabury was pleased to have had the opportunity to advise the Chorus management and its Board over the last 24-month period and work collaboratively and creatively with management teams from both Air Canada and Chorus to achieve this exceptional outcome for both organizations. At the outset, all parties were stymied with respect to solving a very difficult and complex set of issues, and only through hard work and perseverance by all did the outcome come into being,” said Seabury Chairman & Chief Executive Officer John E. Luth. “We are honored by the trust placed in Seabury by both parties to have assisted in bringing about this landmark set of agreements.”
“We are transforming Chorus to become a more formidable competitor in the regional aviation industry,” said Chorus President and Chief Executive Officer Joseph Randell. “The time is right to restructure the CPA as it was no longer competitive in the ever-changing regional environment. Significant achievements such as the simplification and modernization of our fleet combined with an industry-leading agreement with our pilots, and a new compensation structure under the CPA all serve as catalysts to secure our cornerstone business with our customer Air Canada, and to create incremental value through growth and diversification. I would also like to thank Seabury for serving as our strategic advisor throughout the process. Our management team and Seabury worked very well together which shows in the final results.”
ABOUT CHORUS AVIATION INC.
Headquartered in Halifax, Nova Scotia, Chorus was incorporated on September 27, 2010 and is a dividend-paying holding company with various interests including Jazz Aviation Holdings Inc. and Chorus Aviation Holdings Inc. Jazz Aviation Holdings Inc. holds all of Chorus’ business interests associated with the CPA with Air Canada which includes Jazz Aviation LP (‘Jazz’), Jazz Aircraft Financing Inc. (‘JAFI’), and Jazz Leasing Inc. (‘JLI’). JAFI and JLI were established for the sole purpose of acquiring and financing Q400 aircraft and related equipment, and leasing them to Jazz for use in the CPA. Chorus Aviation Holdings Inc. is a holding company to facilitate diversification of Chorus’ business, such as the establishment of Chorus Airport Services Inc. which provides airport handling services. Chorus is traded on the Toronto Stock Exchange under the trading symbols of CHR.A and CHR.B.
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. As the largest regional airline in Canada, Jazz has a proven track record of industry leadership and exceptional customer service, and has leveraged that strength to deliver value to all its stakeholders. The Company operates more flights and flies to more Canadian destinations than any other airline, and currently has a workforce of approximately 4,200 professionals highly experienced in the challenging and complex nature of regional operations. Jazz employees are an integral part of communities across our nation with 21% of our workforce based in Atlantic Canada, 46% based in Central Canada, 32% based in Western Canada, and 1% in Northern Canada.
Under a capacity purchase agreement with Air Canada, using the Air Canada Express brand, 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. In February of 2015 Jazz is operating scheduled passenger service on behalf of Air Canada with approximately 7230 departures per weekday to 55 destinations in Canada and to 18 destinations in the United States. With a fleet of 122 Canadian-made Bombardier aircraft, Jazz flies more daily flights to more Canadian destinations than any other airline.
Under the Jazz brand, the airline offers charters throughout North America with a dedicated fleet of three 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.
ABOUT SEABURY GROUP
Seabury Advisory Group is part of Seabury Capital, a leading global advisory and professional services firm that delivers diversified and responsive business solutions to clients in Aviation, Aerospace & Defense, Transportation, Financial Services, Insurance and related industries. Since 1995, Seabury has partnered with more than 300 clients on 1,000+ engagements to solve their most complex challenges through an integrated approach to consulting, investment banking, asset management and information technology. Our professionals worldwide are top-tier bankers, consultants, technology experts and former executives who share a passion for delivering innovative and intuitive solutions geared toward our clients’ diverse and emerging needs. Headquartered in New York, Seabury and its subsidiaries are based in 14 countries on five continents. www.seaburygroup.com