Jazz Air Income Fund analyst coverage

Jazz Air LP (Jazz) is Canada's largest regional airline and the second largest airline in Canada, based on fleet size and number of routes operated. Under a capacity purchase agreement (CPA) with Air Canada, Jazz provides service to and from lower density markets as well as higher density markets at off-peak times throughout Canada and to and from certain destinations in the United States.

Jazz currently operates scheduled passenger service on behalf of Air Canada with approximately 800 departures per weekday to over 80 destinations in Canada and in the United States with a fleet of Canadian-made Bombardier aircraft exclusively.

Jazz has experienced sustained growth since the introduction of the regional jet to its fleet. Jazz's simplified fleet consists of regional jets and Dash 8 turboprop aircraft. Jazz has a fleet of 137 operating aircraft comprised of 73 regional jets and 64 turboprops.

Jazz has a history of strong operational performance, along with an excellent safety record. Management's experience and leadership ability, coupled with Jazz's highly skilled labour force, have greatly contributed to solid operating performance. Together, this team of professionals is committed to building the best regional airline in the world.

Management anticipates that substantially all of Jazz’s growth over the next several years will be attributable to its CPA with Air Canada. Under the CPA with Air Canada, and subject to certain conditions, Jazz is also able to enter into similar capacity agreements with other airlines.

In addition to its operations under the CPA, Jazz continues to expand its charter services to customers in Canada as well as transborder services. Jazz has been able to attract a wide variety of charter customers over the years including sports teams, fishing lodges, oil and gas companies, various provincial forestry ministries, musical groups and corporate clients.

Jazz's technical operations team performs regional jet and turboprop line maintenance, heavy maintenance and aircraft modifications to support Jazz's operations as well as for other airlines, aircraft manufacturers and lessors. Management believes Jazz to be in an excellent position to expand further into the third party maintenance, repair and overhaul business.