Air Canada invests C$97m in Chorus and extends CPA

Air Canada will invest C$97.3m in regional partner Jazz Aviation's parent Chorus Aviation, as it extends the Jazz capacity purchase agreement (CPA) by an additional 10 years until end-2035. Chorus plans to use 60% of the investment from Air Canada to purchase nine additional 76-seat Bombardier CRJ900s, which will be delivered in 2020, says Chorus CE Joe Randell on an investors call Monday. As part of the investment in Chorus, Air Canada will receive a seat on Chorus' board and has nominated its CFIO Michael Rousseau to the position. Air Canada has committed to hold its investment for at least 60 months. Randell says the amended CPA with Air Canada provides greater certainty for Chorus, while ensuring increased relevance for Jazz within Air Canada's network. Chorus leases aircraft into Jazz, which operates regional service under the Air Canada Express brand. Story has more financial details.<br/>