Posted on: 04 April 2010
Jazz Air has diversified its income stream by signing a flight services agreement with Thomas Cook Canada to operate no less than six Boeing 757-200s on behalf of the latter to various sun destinations from Canadian gateways during the winter season (November until April).
Subject to Jazz obtaining the required regulatory approvals and the execution of definitive leasing and maintenance agreements with Thomas Cook Airlines, the service will begin in November 2010.
If on or before 30 May 2010 Jazz and Thomas Cook are able to agree on pricing for the third, fourth and fifth winter seasons, then the agreement will be for a term ending 30 April 2015. Otherwise the agreement will have an initial term ending 30 April 2012.
The agreement is expected to generate approximately $100 million in additional annual revenues. The terms and conditions of the transaction are confidential.
"Growing and diversifying our business remains a top corporate priority; our agreement with Thomas Cook is a strong start that delivers value to all of our stakeholders," declared Joe Randell, president and CEO, Jazz Air. "We are thrilled to be partnering with one of the world’s largest leisure travel groups, and it’s our employees who have brought us to this important milestone. Our demonstrated ability to operate safely, reliably and with excellent customer service at competitive rates is the reason why we are able to grow and diversify our business. All our employees are to be commended for their ‘can do’ attitude and professionalism."
The aircraft will be leased to Jazz Air LP from Thomas Cook Airlines Ltd. The plan is to brand the service as ‘Thomas Cook’ beginning in January, 2011.