Chorus Aviation Launches Aircraft Leasing Subsidiary



Chorus Aviation will establish a new regional aircraft leasing subsidiary, Chorus Aviation Capital, and has entered into an agreement pursuant to which Fairfax Financial Holdings Limited and certain of its subsidiaries will invest C$200 million ($149.03 million) in Chorus through a private placement of 200,000 convertible debt units.

Chorus Aviation Capital will be led by Steven Ridolfi as president. Ridolfi is currently the senior vice president, Strategic Investments, Mergers and Acquisitions at Chorus. His long and distinguished career in aerospace, including his experience leading both Bombardier’s Regional Aircraft and Business Aircraft units, makes him ideally suited to lead this new organization.

“Today’s announcement marks a significant milestone in support of our vision to deliver regional aviation to the world,” said Joe Randell, president and chief executive officer, Chorus. “We have been building our capabilities in aircraft leasing, and are encouraged both by our successes to date and the opportunities we see in this segment. The cost-effective and flexible source of capital provided by Fairfax will enable us to accelerate and strengthen our position as a leading player in this growing business segment. With this support from Fairfax, we will leverage our extensive relationships, knowledge and experience in aviation to create a regional aircraft leasing company capable of delivering a full suite of support services to customers worldwide.”

“Chorus has been the leading Canadian regional carrier for decades, and has a long track record of profitability and strong operational performance,” commented Prem Watsa, chairman and CEO, Fairfax. “We believe the Chorus management team is pursuing an entrepreneurial strategy built around their regional aircraft expertise that capitalizes on strong market opportunities with attractive returns.”

In recent years, Chorus has steadily grown its aircraft leasing revenues from aircraft deployed under the capacity purchase agreement between Jazz Aviation and Air Canada (the ‘CPA’), reaching CAD $71.9 million in the first nine months ended September 30, 2016. On November 9, 2016, Chorus announced a transaction involving the lease of up to four Bombardier CRJ1000 aircraft to Air Nostrum, Lineas Aereas Del Mediterraneo, marking the first significant aircraft leasing transaction outside of the CPA. The establishment of an aircraft leasing subsidiary supported by Fairfax’s $200 million investment in Chorus provides Chorus with a solid foundation from which to realize its ambition of building a globally-competitive, regional aircraft leasing business capable of providing a full suite of services to regional aircraft operators.


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