Jazz Air (QK, Halifax) parent, Chorus Aviation, has signed a firm purchase agreement with Bombardier Aerospace (BBA, Montréal Trudeau) involving thirteen DHC-8-400s with options for ten additional airframes of the same type. Based on current list prices, the firm order is valued at approximately USD424 million though this could rise to USD758 million should Chorus exercise all its options.
“The addition of these new Q400 NextGen aircraft will continue Jazz’s fleet renewal program that began in 2011, and provide unit operating costs that are amongst the lowest of any regional aircraft,” said Joseph Randell, President and Chief Executive Officer, Chorus and Jazz. “The addition of these efficient aircraft is an important component of our cost reduction plans and the proposed amended Capacity Purchase Agreement (CPA) with Air Canada.”
As part of an amended Capacity Purchase Agreement signed with Air Canada this year, Chorus said it would gradually replace its thirty-four DHC-8-100s and twenty-five CRJ200s with twenty-three Dash 8-400s over the next 11 years.
While Jazz will transition to a mixture of larger, newer aircraft comprising Dash 8-400s and CRJ705 aircraft, Chorus says it will establish a second carrier, similar to Air Canada rouge (RV, Toronto Pearson), to operate its fleet of Dash 8-100s and Dash 8-300s.
The yet-to-be-named airline will address the need for improved economics among Chorus's fleet of older aircraft. As such, the firm plans to extend the life of its DHC-8-300 fleet from the original 80,000 flight cycles to 120,000 through a Bombardier-endorsed Extended Service Program. All twenty-eight DHC 8-300s will continue to operate through to 2025 once they have been serviced.
"This simplification and modernization of the fleet will deliver significant cost efficiencies that will provide the economics required to maintain a significant long-term presence in Air Canada's regional network," Randall added.
