Chorus Aviation agrees on aircraft leasing transaction with Air Nostrum

Chorus is seeking opportunities to increase its regional aircraft leasing activity outside of the CPA as management recognizes regional aircraft leasing as a growing market segment with few established providers. Chorus (through a subsidiary) plans to purchase and lease four new CRJ1000 regional jets to Air Nostrum, and has secured a letter of offer from Export Development Canada (‘EDC’) for debt financing of up to 80% of the net purchase price of each CRJ1000. The four aircraft are scheduled to be delivered in November and December 2016 and in July and October 2017. For the third quarter of 2016, Chorus Aviation reported revenue and adjusted EBITDA, excluding other items of US$331.1m and US$70.0m respectively, compared to US$412.2m and US$68.8m, respectively in the same period of 2015.