Jazz Air Income Fund will convert into a dividend-paying corporation named Chorus Aviation Inc. by the end of the year, when federal tax changes are set to come into effect.
The regional airline first announced plans for the conversion earlier this week, but at that time did not say it would change the name of the organization.
It did not explain the motivation behind switching its name to Chorus Aviation.
Jazz says it plans to exchange shares of the fund for shares in the capital of the new public company, and begin paying a dividend of 15 cents per Chorus share each quarter - equivalent to 60 cents per share annually.
Jazz Air Income Fund was created as a separate company after Air Canada was restructured under court protection.
Its airline, Jazz Air, primarily sells its capacity to Air Canada.
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