Business
Chorus Aviation Announces Significant Measures in Response to COVID-19, including Dividend Suspension and New US$100 Million Credit Facility
Chorus Aviation Announces Significant Measures in Response to COVID-19, including Dividend...
About this update from Chorus Aviation Inc.
[{"type":"text","content":"\n\n\n\nChorus Aviation Announces Significant Measures in Response to COVID-19, including Dividend Suspension and New US$100 Million Credit Facility\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nHALIFAX, April 6, 2020\n\n\n\nHALIFAX, April 6, 2020 /CNW/ - Chorus Aviation Inc. ('Chorus' or the 'Company') provides the following update on the impact of the coronavirus (COVID-19) outbreak on its business and its initiatives to preserve liquidity. \nThe COVID-19 outbreak has led to worldwide economic uncertainty with companies around the globe taking painful steps to manage through this unprecedented, ever changing event. For the aviation industry, it has led to strict travel restrictions and global cancellations impacting all airlines around the world. The International Air Transport Association is currently estimating a US$252 billion year-on-year loss in passenger revenue worldwide. Even if the Company's business model does not directly expose it to the market risks ordinarily faced by airlines, substantially all its source revenue is derived from airline customers, through its Capacity Purchase Agreement ('CPA') with Air Canada and its leasing of aircraft to airline customers globally. The full extent of the duration and therefore impact of this pandemic are unknown.\nJoe Randell, President and CEO, stated, \"Our industry is facing its worst crisis in history.  The world situation is unstable and there are no signs of a near-term recovery. We entered this predicament from our strongest position ever, and it's devastating to be sending approximately 3,000 employees home, given the successes we've achieved together. Our employees are amongst the most talented in the industry, and I'm deeply troubled by the uncertainty and anxiety this is causing our employees and their families. The rapid and dramatic impact of this pandemic is astounding, and we're taking all measures to ensure the safety of our employees, mitigate costs, bolster our liquidity and strengthen our relationships with customers. We're prudently and responsibly managing our financ...