Canadian aviation holding group, Chorus Aviation, has confirmed it plans to establish a new regional aircraft leasing subsidiary, Chorus Aviation Capital (CAC).
In a statement, the firm said it had appointed its Senior Vice President (Strategic Investments, Mergers & Acquisitions), Steven Ridolfi, to be President of CAC. Venture capital firm Fairfax Financial Holdings Limited and certain of its subsidiaries will help foster the CAC's creation through a CAD200 million (USD146.7 million) investment in Chorus Aviation.
"We have been building our capabilities in aircraft leasing, and are encouraged both by our successes to date and the opportunities we see in this segment," Joe Randell, President and Chief Executive Officer, Chorus, said. "The cost-effective and flexible source of capital provided by Fairfax will enable us to accelerate and strengthen our position as a leading player in this growing business segment."
The push to expand into the leasing sector forms part of Chorus Aviation's strategy to further diversify its revenue streams which, at present, are anchored on its regional and charter airline operator, Jazz Air (QK, Halifax), and its Voyageur Airways (VAL, North Bay) sub-unit. Jazz Air currently provides capacity to Air Canada (AC, Montréal Trudeau) under the Air Canada Express banner.
It is recalled that last month, Chorus Aviation placed four CRJ1000s with Spain's Air Nostrum (YW, Valencia Manises) - the first major transaction it has carried out external of its Capacity Purchase Agreement with Air Canada.
