Chorus Aviation provides update on benchmarking arbitration timing
HALIFAX, May 3, 2013 /CNW/ - Chorus Aviation Inc. ("Chorus") (TSX: CHR.B CHR.A
CHR.DB) today provided an update on the expected timing of the arbitration
relating to the benchmarking provisions in the Capacity Purchase Agreement
('CPA') with Air Canada.
On February 20, 2013 Chorus confirmed the next hearing before the arbitration
panel would take place in April 2013. The hearing occurred as scheduled, but
the parties did not complete their respective submissions within the time
available. As a result, further hearing dates have been scheduled for July
2013 and a date for oral argument in September 2013.
"The benchmarking arbitration is proving to be an extended process that
unfortunately won't likely be concluded before the fourth quarter of this
year," said Joe Randell, President and Chief Executive Officer, Chorus. "We
remain confident in our position that the controllable mark-up of 12.5% in our
Capacity Purchase Agreement with Air Canada should not change as a result of
this benchmarking exercise. While this process is outside of our control, we
continue to believe this period of uncertainty will result in a positive
Caution regarding forward-looking information
Certain statements in this news release may contain statements which are
forward-looking. These forward-looking statements are identified by the use of
terms and phrases such as "anticipate", "believe", "could", "estimate",
"expect", "intend", "may", "plan", "predict", "project", "will", "would", and
similar terms and phrases, including references to assumptions. Such
statements may involve but are not limited to comments with respect to
strategies, expectations, planned operations or future actions.
Forward-looking statements relate to analyses and other information that are
based on forecasts of future results, estimates of amounts not yet
determinable and other uncertain events. Forward-looking statements, by their
nature, are based on assumptions, including those described below, and are
subject to important risks and uncertainties. Any forecasts or forward-looking
predictions or statements cannot be relied upon due to, amongst other things,
changing external events and general uncertainties of the business. Such
statements involve known and unknown risks, uncertainties and other factors
that may cause the actual results, performance or achievements to differ
materially from those expressed in the forward-looking statements. Results
indicated in forward-looking statements may differ materially from actual
results for a number of reasons, including without limitation, risks relating
to Chorus' relationship with Air Canada, risks relating to the airline
industry, energy prices, general industry, market, credit, and economic
conditions, competition, insurance issues and costs, supply issues, war,
terrorist attacks, epidemic diseases, acts of God, changes in demand due to
the seasonal nature of the business, the ability to reduce operating costs and
employee counts, secure financing, employee relations, labour negotiations or
disputes, restructuring, pension issues, currency exchange and interest rates,
leverage and restructure covenants in future indebtedness, dilution of Chorus
shareholders, uncertainty of dividend payments, managing growth, changes in
laws, adverse regulatory developments or proceedings, pending and future
litigation and actions by third parties. The forward-looking statements
contained in this discussion represent Chorus' expectations as of May 3, 2013,
and are subject to change after such date. However, Chorus disclaims any
intention or obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise, except as
required under applicable securities regulations.
About Chorus Aviation Inc.
Chorus Aviation Inc. ("Chorus") was incorporated on September 27, 2010 and is
a dividend-paying holding company which owns Jazz Aviation LP, and Chorus
Leasing III Inc.
Chorus is traded on the Toronto Stock Exchange under the trading symbols of
CHR.A, CHR.B and CHR.DB.
For more information, visit www.chorusaviation.ca
Manon Stuart(902) 873-5054 Halifax, Nova Scotiamanon.firstname.lastname@example.org
Nathalie Megann(902) 873-5094 Halifax, Nova
SOURCE: CHORUS AVIATION INC.
To view this news release in HTML formatting, please use the following URL:
ST: Nova Scotia
NI: AIR ORDER
-0- May/03/2013 21:30 GMT
Press spacebar to pause and continue. Press esc to stop.