Jazz Air signed a flight services agreement with Thomas Cook Canada to operate no less than six Boeing 757-200 aircraft on their behalf to various sun destinations from Canadian gateways during the winter season (November through April). Subject to Jazz obtaining the required regulatory approvals and the execution of definitive leasing and maintenance agreements with Thomas Cook Airlines, the service will commence in November 2010.
If on or before May 30, 2010 Jazz and Thomas Cook are able to agree on pricing for the third, fourth and fifth winter seasons, then the agreement will be for a term ending April 30, 2015. Otherwise the agreement will have an initial term ending April 30, 2012. This agreement is expected to generate approximately $100 million in additional annual revenues. The terms and conditions of the transaction are confidential.
