July 2, 2020
Recently Announced Air Canada Cutbacks Operated by Jazz
Air Canada made headlines across the country this week when it was announced the company was discontinuing 30 of its routes and closing eight of its operating bases. However, of the 30 route discontinuations, 21 were actually operated by Jazz Aviation LP, owned by Halifax-based Chorus Aviation. And of the eight operating base closures announced, all were operated by Jazz.
In a statement released on June 30, Chorus president and CEO Joe Randell said, “The COVID-19 crisis and provincial and federal government-imposed travel restrictions and border closures are having a significant negative effect on passenger demand for Canadian air travel. I am saddened by the impact today’s announcement will have on our employees, suppliers and the affected communities, but respect and understand the difficult choice our partner, Air Canada, has had to make.”
Almost all of Jazz’s fleet capacity is purchased by Air Canada through a capacity purchase agreement which extends to 2035. Under the terms of the agreement, Air Canada assumes most of the ongoing costs such as fleet leases, fixed margin fees and other operating costs. The press release ends with a statement that, “Jazz’s compensation does not vary with flight activity and remains unchanged with this announcement.”
For many of Jazz’s pilots, their job was among their first major footholds in the aviation industry. How this will affect their jobs and career paths over the longer term is unclear at this time.
Photo credit: Jazz Aviation