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 49%).
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.