Asset-Based Regulatory Finance news In addition to providing advice and expertise, the finance partner should be able to bring some peace of mind. By financing business aircraft with an expert, aircraft buyers will truly be able to soar.
turbojets, turboprops and helicopters. It serves corporations, high net worth individuals and aircraft charter operators within the general aviation market across North America. Learn more at www.lbccapital.ca/aviation or reach out at Isabelle.Lafond@lbccapital.ca for additional details.
Isabelle Lafond is an account director, aviation finance at LBC Capital. LBC Capital’s Aviation Finance Group provides capital for the acquisition and refinance of corporate aircrafts including
Unless otherwise indicated, the content of this article is provided for information purposes only and does not constitute an offer to purchase or sell the products or services of LBC Capital. This information is of a general nature and is not intended as specific investment,
financial, accounting, legal or tax advice and should not be relied on as such. Information provided is believed to be accurate when released. Despite its best efforts, however, LBC Capital cannot guarantee that it is accurate or complete or that it will be current at all times. 1 InterVISTAS Consulting, “Economic Impact of Business Aviation Operations and Business Aircraft Manufacturing in Canada”, September 27, 2017. 2 “Economic Impact”, Ibid. 3 Bombardier Business Aircraft, “Market Forecast 2016-2025”, 2016. 4 JETNET iQ “Q3 2018-Q1 2019 Survey”, 2019.
Chorus Aviation Continues Upward Chorus Aviation’s flight path continues its ascent. The Halifax, Nova Scotia-based company owns Jazz Aviation LP, Voyageur Aviation Corp. and Chorus Aviation Capital (CAC) and has a vision to deliver regional aviation to the world. Chorus reported that its first quarter 2019 operating revenue grew 6.2 per cent over the same period in 2018, to $344 million from $324 million. Propelling the company forward in 2019 are developments including: ◉◉ Amended and extended the capacity purchase agreement (CPA) with Air Canada to 2035, securing Jazz’s position in Air Canada’s regional network for the next 17 years; ◉◉ Completed a $97.26 million equity investment by Air Canada to fund new, largergauge aircraft at Jazz and further growth in regional aircraft leasing; ◉◉ Entered into a firm purchase agreement with Bombardier for nine CRJ900s as part of Jazz’s fleet modernization plan; ◉◉ Achieved an unprecedented 17-year collective agreement with Jazz pilots and enhanced the pilot
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mobility programme to access pilot careers at Air Canada; ◉◉ Secured a USD $300 million credit facility to support growth of regional aircraft leasing business; and ◉◉ Reached an agreement to acquire a portfolio of six aircraft with leases attached: two ATR72600s on lease to Azul of Brazil and four Q400s on lease with two other existing customers.
the CPA with Air Canada, Chorus’ fleet of leased aircraft comprises 103 aircraft valued at approximately US $1.7 billion. CAC has relationships with 14 regional airlines based in 13 countries. “I’m very pleased with the execution of our growth
and diversification strategy, which continues to build on the momentum achieved in 2018,” stated Joe Randell, Chorus president and CEO when commenting on the company’s first quarter 2019 financial results. “We are well positioned for the future.”
These results build on a strong performance. Chorus reported that its operating revenues reached $1.45 billion in 2018 from $1.35 billion in 2017. More recently, CAC reached an agreement to acquire five Q400s on lease with Flybe, and also entered into an agreement to deliver six ATR72-600s to IndiGo of India under a sale-leaseback transaction. Upon completion of these recent transactions, including other pending transactions, CAC’s announced portfolio commitments include 44 turboprops and 12 regional jets. When combined with the 47 aircraft leased under
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