Chorus Wins Dispute With Air Canada

Chorus Aviation has won a three-year battle over the mark up it charges on flights for Air Canada. The Canadian airline charges a 12.5 per cent mark up n flights it operates under contract with Air Canada despite the latter recommending it charges between seven and 9.5 per cent extra. On Tuesday, and arbitration panel ruled in favour of Chorus meaning it can retain its current mark up and does not have to make back payments. Chorus operates about 120 aircraft for Air Canada under the Jazz Aviation brand. "We are pleased that the arbitration panel has ruled in favour of Jazz and that we can now move forward with certainty," said Joseph Randell, CEO of Chorus and Jazz. "We've heard and understand Air Canada's desire to reduce the cost of its regional services," continued Randell. "Over the past several months we have developed a framework of strategic options that seeks to address Jazz's cost structure while maintaining our industry-leading operations, and foster a more effective partnership. This framework is based on a series of win-win propositions that could strengthen Jazz and Air Canada in the North American market, create additional value for all our respective stakeholders, and solidify our future in Air Canada's network.

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