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Press release from CNW Group

JAZZ AIR LP CONCLUDES NEGOTIATIONS FOR A FIVE-YEAR FLIGHT SERVICES AGREEMENT WITH THOMAS COOK CANADA INC. AND EXPECTS GROWTH IN ITS FLYING WITH AIR CANADA

Thursday, September 30, 2010

JAZZ AIR LP CONCLUDES NEGOTIATIONS FOR A FIVE-YEAR FLIGHT SERVICES AGREEMENT WITH THOMAS COOK CANADA INC. AND EXPECTS GROWTH IN ITS FLYING WITH AIR CANADA07:00 EDT Thursday, September 30, 2010HALIFAX, Sept. 30 /CNW/ - Today, Jazz Air LP ("Jazz") announced that it concluded negotiations with Thomas Cook Canada Inc. ("Thomas Cook") with respect to their flight services agreement, establishing the pricing for a five-year term ending April 30, 2015.Last April, Jazz signed a flight services agreement with Thomas Cook to operate flights on its behalf during the winter season (November through April). In the initial season, Jazz will operate six Boeing 757-200 aircraft to various destinations in the Caribbean, Mexico and Central America from Toronto, Ottawa, Montreal and Halifax under the Thomas Cook Canada brand, subject to Jazz obtaining the required regulatory approvals. Service will commence on November 5, 2010 and will feature several product enhancements developed jointly by Jazz, Thomas Cook and its Sunquest Division."This strategic partnership is Jazz's first foray in providing services to a tour operator and forms an important part of our plan to continue growing and diversifying our business," said Joseph Randell, President and Chief Executive Officer, Jazz Air LP.In 2011, Jazz expects growth in flying under its capacity purchase agreement with Air Canada. Based on the Annual Operating Plan provided by Air Canada which is provided for budget and planning purposes and is subject to change, Jazz anticipates flying approximately five percent more block hours year over year. Jazz estimates the total billable block hours for the year 2011, which include the Thomas Cook flying, to be between 400,000 and 410,000 block hours. Beginning in June 2011, Jazz will introduce the new Bombardier Q400 NextGen aircraft to support the Air Canada service."We are pleased to add the Q400 aircraft and to grow our flying with Air Canada once again," said Randell. "We are encouraged by the increased flying which reflects a moderate recovery from the economic downturn." << CAUTION REGARDING FORWARD-LOOKING INFORMATION --------------------------------------------- >> This news release should be read in conjunction with the Fund's audited consolidated financial statements for the period ended June 30, 2010 and MD&A dated August 3, 2010, filed with Canadian Securities regulatory authorities (available at www.sedar.com).Certain statements in this news release may contain statements which are forward-looking statements. These forward-looking statements are identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions. Such statements may involve but are not limited to comments with respect to strategies, expectations, planned operations or future actions. Forward-looking statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and other uncertain events. Forward-looking statements, by their nature, are based on assumptions, including those described below, and are subject to important risks and uncertainties. Any forecasts or forward-looking predictions or statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. Such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to differ materially from those expressed in the forward-looking statements. Results indicated in forward-looking statements may differ materially from actual results for a number of reasons, including without limitation, risks relating to Jazz's relationship with Air Canada, risks relating to the airline industry, energy prices, general industry, market credit and economic conditions, competition, insurance issues and costs, supply issues, war, terrorist attacks, epidemic diseases, acts of God, changes in demand due to the seasonal nature of the business, the ability to reduce operating costs and employee counts, secure financing, employee relations, labour negotiations or disputes, restructuring, pension issues, currency exchange and interest rates, changes in laws, adverse regulatory developments or proceedings, pending and future litigation and actions by third parties, as well as the factors identified in the Risk Factors section of the Fund's MD&A dated August 3, 2010. The forward-looking statements contained in this discussion represent the expectations of the Fund and Jazz as of June 30, 2010, and are subject to change after such date. However, the Fund and Jazz disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.About Jazz Air LPJazz Air LP ("Jazz Air") is indirectly wholly owned by the Jazz Air Income Fund (the "Fund") and has a strong history in Canadian aviation with its roots going back to the 1930s. Since the Fund became publicly traded in February 2006, it has generated some of the strongest operational and financial results in the North American aviation industry. Under a capacity purchase agreement with Air Canada, Jazz Air 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. Jazz Air currently operates scheduled passenger service on behalf of Air Canada with approximately 830 departures per weekday to 84 destinations in Canada and in the United States with a fleet of Canadian-made Bombardier aircraft.For more information, visit www.flyjazz.ca.For further information: Manon Stuart, Halifax, (902) 873-5054, manon.stuart@flyjazz.ca; Debra Williams, London, (519) 457-8071, debra.williams@flyjazz.ca; www.flyjazz.ca