Chorus Aviation Capital has agreed to acquire six ATR 72-600 aircraft with attached leases from Singapore’s Avation PLC. No financial terms were released for the proposed acquisition, which consists of three aircraft on lease to British carrier Flybe and three to Virgin Australia Airlines. Chorus Aviation Capital, a regional aircraft leasing subsidiary of Halifax-based Chorus Aviation Inc (TSX: CHR), was launched in December. The launch was backed with a $200 million investment by Canadian holding company Fairfax Financial Holdings Ltd.
Chorus Aviation announces agreements to acquire six ATR 72-600 aircraft on lease to Flybe and Virgin Australia
HALIFAX, April 24, 2017 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) announced today agreements by Chorus Aviation Capital’s subsidiaries to acquire six ATR 72-600 aircraft with attached leases from Avation PLC. Three of these aircraft are currently on lease to U.K. carrier, Flybe, and three to Virgin Australia Airlines. The aircraft are between one and four years old and are the first ATRs added to Chorus Aviation Capital’s growing regional aircraft fleet.
Commenting on the planned purchase, Chorus Aviation Capital’s President, Steven Ridolfi, said, “We are delighted to announce this portfolio acquisition, adding two outstanding customers to our growing pool of airline lessees, and welcoming the addition of the first ATRs to our diversifying fleet.”
Joe Randell, President and Chief Executive Officer, Chorus, said, “This investment further demonstrates the targeted expansion and growth strategy for Chorus into regional aircraft leasing. We are building a leading global regional aircraft lessor and look forward to announcing additional opportunities in the months ahead.”
The aggregate purchase price for the aircraft is consistent with current market values for similar aircraft, and Chorus Aviation Capital intends to finance the purchase utilizing a combination of debt financing and cash with a leverage ratio of between three and four to one. The transactions are expected to close by the end of June 2017 and are subject to customary conditions precedent to closing, including novation of the existing leases and receipt of debt financing.
Headquartered in Halifax, Nova Scotia, Chorus was incorporated on September 27, 2010. Chorus’ vision is to deliver regional aviation to the world. Chorus owns Jazz Aviation and Voyageur Aviation – companies that have long histories of safe and solid operations that deliver excellent customer service in the areas of contract flying operations, engineering, fleet management, and maintenance, repair and overhaul. Chorus has been leasing its owned regional aircraft into Jazz’s Air Canada Express operation since 2009, and recently established Chorus Aviation Capital to become a leading, global provider of regional aircraft leases and support services. Chorus Class A Variable Voting Shares and Class B Voting Shares trade on the Toronto Stock Exchange under the trading symbol ‘CHR’. For more information about Chorus and its subsidiaries, see www.chorusaviation.ca.
For further information: Chorus Media Contacts: Manon Stuart, Halifax, Nova Scotia, (902) 873-5054, firstname.lastname@example.org; Debra Williams, Toronto, Ontario, (905) 671-7769, email@example.com; Analyst Contact: Nathalie Megann, Halifax, Nova Scotia, (902) 873-5094, firstname.lastname@example.org
Photo courtesy of Avation PLC