„I think it`s time. The capacity provider model [in Europe] differs slightly. It is not so much that you will see the name of the regional airline at the front; I think it`s really about the brand. We see a mix in some major airlines that are not really attentive to this occasion and others that are really suited to this, the big time. „We are very pleased to have secured this win-win agreement with Jazz and Chorus, which will give us long-term stability, greater security of competitive costs and the flexibility needed to modernize the regional fleet for the benefit of our customers. The amendments will allow us to offer regional services at a lower cost so that we can compete more efficiently, use the most suitable aircraft for a given regional market, and also generate additional traffic to power our international network,“ said Calin Rovinescu, President and Chief Executive Officer of Air Canada. „As further evidence of Air Canada`s commitment to a successful long-term partnership, once the CPA amendments come into effect, we will make a $97.26 million interest in Chorus. We are not only coordinating our mutual interests, but also of exceptional value to Air Canada shareholders. „What we are seeing is that Europe is becoming a model based on the American model, with longer-term capacity purchase contracts. For us, we want this model to work in Europe. Capacity purchase contracts are an important activity in the United States. They enable regional routes to operate for major airlines, eliminate the risk of operating regional routes and allow greater flexibility. However, the idea of purchasing capacity has not changed in Europe, at least not in the order of the United States. Here`s what`s good with CPAs and why European airlines should look to use this type of service.
MONTREAL, January 14, 2019 /CNW Telbec/ – Air Canada today announced an agreement to amend and extend the Capacity Purchase Agreement (CPA) with Jazz Aviation LP, a wholly owned subsidiary of Chorus Aviation Inc., under which Jazz currently operates some of Air Canada Express` regional flights.