Chorus Aviation has outlined ambitious plans for its leasing subsidiary following a boost in second-quarter net income of almost 75%, to C$41 million ($32.2 million), for the diversified aviation group.
Its leasing unit, Chorus Aviation Capital, will raise debt to add regional aircraft to its 56-strong portfolio through this year and next, but that growth will be supported by the type of integrated aftermarket offer that several other lessors are now pursuing.
"We're making significant progress in growth and diversification as we build Chorus Aviation Capital into a leading regional aircraft lessor. Our objective is to become one of the top regional aircraft lessors in the world,” says Joe Randell, CEO of Chorus.
One of Chorus’ subsidiaries, Jazz Aviation, offers third-party Bombardier MRO services via Jazz Technical Services, while another, Voyageur Aerospace provides tear-down, parts and other end-of-life services for mature regional aircraft.
In the second quarter Jazz Technical Services completed the world's first Extended Service Program on a Dash 8-300 aircraft, and was designated as a Bombardier authorised provider of maintenance, repair and overhaul.
Jazz Aviation also operates regional airlines services on behalf of Air Canada, while Voyageur offers ACMI flying and a Dash 8-100 freighter conversion package.
Voyageur expects to deliver a second converted Dash 8-100 freighter to Wasaya Airways later this month.
In the first half of the year Chorus reported a C$7.2 million boost to EBITDA related to incremental margin from aircraft leasing and MRO to customers other than Air Canada.
And although maintenance’s share of Chorus revenues will probably decline as the leasing business expands, the company clearly recognizes the importance of an integrated offer.
“We are now delivering customers a complete suite of regional aviation services including contracted flying, aircraft engineering, maintenance, repair and overhaul, parts provisioning and aircraft leasing solutions," says Randell.