HALIFAX, Dec. 30, 2008 (Canada NewsWire via COMTEX News Network) -- Jazz Air LP ("Jazz") today provided an update on the continuing negotiations with Air Canada regarding the establishment of new rates for controllable costs that will become payable by Air Canada under the Capacity Purchase Agreement (CPA) in respect of the years 2009 to 2011 (inclusive). The parties have agreed to continue direct negotiations until January 31, 2009. If an agreement regarding the new rates is not reached by that date, either party may refer the matter to commercial arbitration, as provided in the CPA.
Once finalized, the new rates will be retroactive to January 1, 2009, and the parties will reconcile the amounts paid to the amounts owing under the new rates such that the parties will be in the same position they would have been in had the new rates been in effect as of January 1, 2009.
In order to respect the integrity of these negotiations Jazz, will not provide additional comment at this time.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
Certain statements in this news release may contain statements which are forward-looking statements. These forward-looking statements are identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions. Such statements may involve but are not limited to comments with respect to strategies, expectations, planned operations or future actions. Forward-looking statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and other uncertain events. Forward-looking statements, by their nature, are based on assumptions, including those described below, and are subject to important risks and uncertainties. Any forecasts or forward-looking predictions or statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. Such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to differ materially from those expressed in the forward-looking statements. Results indicated in forward-looking statements may differ materially from actual results for a number of reasons, including without limitation, energy prices, general industry, market and economic conditions, competition, insurance issues and costs, supply issues, war, terrorist attacks, epidemic diseases, changes in demand due to the seasonal nature of the business, the ability to reduce operating costs and employee counts, employee relations, labour negotiations or disputes, restructuring, pension issues, currency exchange and interest rates, changes in laws, adverse regulatory developments or proceedings, pending and future litigation and actions by third parties, as well as the factors identified in the Risk Factors section of Jazz Air LP's and Jazz Air Income Fund's restated annual MD&A dated February 19, 2008, the Annual Information Form dated March 28, 2008, and interim MD&A dated November 5, 2008. The forward-looking statements contained in this discussion represent Jazz's expectations as of November 5, 2008, and are subject to change after such date. However, Jazz disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.
About Jazz Air Income Fund
Jazz Air Income Fund is an unincorporated, open-ended trust established under the laws of the Province of Ontario, created to indirectly acquire and hold an interest in the outstanding limited partnership units of Jazz Air LP.
Jazz is the second largest airline in Canada based on fleet size and the number of routes operated. Jazz operates more flights and flies to more Canadian destinations than any other Canadian carrier. Jazz forms an integral part of Air Canada's domestic and transborder market presence and strategy. Jazz is owned by Jazz Air Income Fund (TSX: JAZ.UN).
Jazz is not a typical airline. The airline has a commercial agreement with Air Canada that is the core of its business. Under the Capacity Purchase Agreement (CPA), Air Canada currently purchases substantially all of Jazz's fleet capacity based on predetermined rates. The CPA provides commercial flexibility, low trip costs and connecting network traffic to Air Canada. Also, the CPA reduces Jazz's financial and business risks, and provides a stable foundation for day-to-day operations and future growth.
SOURCE: Jazz Air Income Fund
SOURCE: Air Canada Jazz
Debra Williams, (519) 457-8071, www.flyjazz.ca