Jazz Air Income Fund announces May distribution
HALIFAX, May 17 /CNW/ - Jazz Air Income Fund (TSX: JAZ.UN ) announced
today that its May cash distribution of $0.0838 per Fund unit covering the
period from May 1, 2007 to May 31, 2007 will be paid on June 15, 2007 to
unitholders of record at the close of business on May 31, 2007.
About Jazz Air Income Fund
The fund is an unincorporated, open-ended trust established under the
laws of the Province of Ontario. The Fund indirectly holds all outstanding
units of Jazz Air LP. ACE Aviation Holdings Inc. holds 58.8% of the issued and
outstanding Jazz Air Income Fund units (before taking into account the special
distribution of Jazz Air Income Fund units by ACE Aviation Holdings Inc. to
its shareholders announced on May 11, 2007, which will bring ACE's holding to
About Jazz Air LP
Jazz Air LP (Air Canada Jazz) is the second largest airline in Canada
based on fleet size and the number of routes operated. Air Canada Jazz
operates more flights and flies to more Canadian destinations than any other
Canadian carrier. Air Canada Jazz forms an integral part of Air Canada's
domestic and transborder market presence and strategy.
Air Canada Jazz and Air Canada are parties to a Capacity Purchase
Agreement (CPA) pursuant to which Air Canada currently purchases substantially
all of Air Canada Jazz's fleet capacity based on predetermined rates. Air
Canada Jazz provides all crews, airframe maintenance and, in some cases,
airport operations. In turn, Air Canada determines routes and controls
scheduling, ticket prices, product distribution, seat inventories, marketing
and advertising for these flights.
Air Canada Jazz is not a typical airline. Currently, 99% of Air Canada
Jazz's revenues are derived from the CPA. Air Canada Jazz is isolated from
most of the risks typically associated with airlines such as fuel and
navigation costs since these costs are passed-through to Air Canada.
Under the CPA with Air Canada, 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.
As of May 1, 2007 Air Canada Jazz operated scheduled passenger service on
behalf of Air Canada with approximately 827 departures per weekday to
56 destinations in Canada and 28 destinations in the United States with a
fleet of 135 aircraft.
Air Canada Jazz is the focal point of Air Canada's regional passenger
strategy. Air Canada Jazz and Air Canada have linked their regional and
mainline networks in order to serve connecting passengers more efficiently and
to provide valuable feed traffic to Air Canada's mainline routes.