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AC EXPANDS RELATIONSHIP WITH AIR GEORGIAN

Following a previously announced Request for Proposals (RFP), Air Canada has signed an MOU to expand its relationship and amend its capacity purchase agreement (CPA) with Air Georgian. Air Georgian has been selected to operate a number of additional regional routes including transborder routes in mid-2014 using Canadair Regional Jet aircraft.

“We are pleased to expand our longstanding commercial relationship with Air Georgian that will allow Air Canada to introduce more cost-competitive operations in a number of our key regional markets,\” said Kevin Howlett, Air Canada’s senior vice-president, Regional Markets. “The competitive bid process generated a significant level of response from a number of Canadian and US regional operators. Following a thorough evaluation of proposals received, Air Georgian was selected on the basis of a broad range of criteria including operational safety, efficiency, cost and service. The award of additional flying to Air Georgian is an important step in our regional airline diversification strategy and ongoing cost transformation program.”

The implementation of the amendment to the CPA remains subject to the parties making any necessary filings, obtaining regulatory approvals and finalizing documentation. Air Canada currently has capacity purchase agreements with four regional airline partners that operate under the banner Air Canada Express: Jazz, Sky Regional, Air Georgian and EVAS. Air Georgian became a Tier III partner of Air Canada in 2000, operating as Air Alliance under a CPA. Today Air Georgian operates under the brand Air Canada Express, focusing on transborder and domestic airline operations carrying over 350,000 passengers per year for Air Canada from Toronto’s Pearson International Airport, Montreal’s Pierre Elliott Trudeau International Airport, Halifax\’s Robert L. Stanfield International Airport and Calgary’s International Airport to 19 Canadian and US destinations. (http://www.aircanada.com)

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