Canada's Chorus Aviation set to acquire Voyageur Airways & Co.

Voyageur Airways (VAL, North Bay) has been acquired by Chorus Aviation after the latter moved to acquire all of the issued and outstanding shares of 519222 Ontario Limited, a holding company that owns Voyageur Airways and its related companies. The transaction is valued at CAD80 million (USD63 million).

In a statement, the Jazz Air (QK, Halifax) parent said the acquisition of Voyageur Airways, which specializes in contract flying in addition to MRO services, would enhance Chorus's existing flight operations network while at the same time boosting its maintenance capabilities.

“We are very excited about this acquisition as it is a logical extension of our existing contract flying business model,” Joe Randell, President and Chief Executive Officer, Chorus, said. “This transaction also provides a strong platform to generate incremental revenue through an expanding customer base both internationally and domestically. Voyageur’s infrastructure and engineering capabilities will be logical additions to help maximize the value of surplus aircraft as our fleet transitions. Voyageur will continue to be operated by its talented and experienced management team, led by Max Shapiro, focused on profitable growth.”

Closing of the transaction is expected to occur in the second quarter of 2015 and is subject to certain closing conditions as well as regulatory approvals.

With a fleet of twenty aircraft - ten CRJ200s, five Dash 7s, and five Dash 8-300s - Voyageur operates medical, logistical and humanitarian flights for government agencies as well as international NGOs in Canada, Africa and Central Asia. It also offers specialized engineering and advanced maintenance operations at its Sudbury, North Bay facility.

In line with its amended Capacity Purchase Agreement (CPA) with Air Canada (AC, Montréal Trudeau), Chorus Aviation is to transition to a mixture of larger, newer aircraft comprising Dash 8-400s and CRJ705s while at the same time establishing a second carrier to operate its fleet of Dash 8-100s and Dash 8-300s which will ultimately be phased out. It is believed Voyageur could be used to help find suitable lessees for these aircraft once they have been retired.