Business
Chorus Aviation Provides Statement on COVID-19
Chorus Aviation Provides Statement on COVID-19 Canada NewsWire HALIFAX, March 18...
About this update from Chorus Aviation Inc.
[{"type":"text","content":"\n\n\n\nChorus Aviation Provides Statement on COVID-19\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.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nHALIFAX, March 18, 2020\n\n\n\nChorus currently has a strong liquidity position with a current cash balance of C$132 million.\n HALIFAX, March 18, 2020 /CNW/ - Chorus Aviation Inc. ('Chorus' or the 'Company') is providing a statement on the impact of the coronavirus (COVID-19) outbreak on its business. \nThe outbreak combined with the measures taken to contain the spread of COVID-19 have resulted in significant reductions in airline passenger volumes, requiring airlines around the world to take immediate measures to reduce costs. Although the Company's business model does not directly expose it to the market risks ordinarily faced by airlines, substantially all of its source revenue is derived from airline customers. Chorus is party to a Capacity Purchase Agreement ('CPA') with Air Canada pursuant to which Jazz performs regional flying operations across Canada and into the United States and earns a fee for this service, in addition to aircraft leasing revenue. The Company also leases aircraft to airline customers globally. Chorus expects the current disruption to the airline industry to be temporary, however, its duration and the full extent of its impact are unknown.\nJoe Randell, President and CEO, stated, \"The disruption to the global airline industry caused by COVID-19 is unprecedented; however, Chorus has entered this crisis stronger than ever. These are very uncertain and difficult times for everyone, including our employees who have contributed significantly to our current strength. We have a collaborative long-term partnership with Air Canada, a well-diversified aircraft leasing portfolio holding high-quality assets, and specialty MRO and contract flying capabilities that give us unique capabilities to transition aircraft for ourselves and third parties. We are certainly not immune to the challenges facing the airline industry; however, the work we have done in the last few years to solidify the CPA and d...