Jazz will not operate "Swing" aircraft. (Loss of 8 RJs)

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QKDH8
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Jazz will not operate "Swing" aircraft. (Loss of 8 RJs)

Post by QKDH8 »

Released this afternoon, from Canada Newswire, in the Chrous Q1 results news release.

It does not effect the minimum covered A/C (125) of which these were to be in addition.

Will not results in staff layoffs, but I would imagine however that this will result in the cancellation of a few upcoming ground schools.

"Update on CPA Swing Aircraft

Today, Jazz Aviation LP ("Jazz") was advised by Air Canada that due to the high cost of fuel it will not exercise the option to operate swing CRJ100 aircraft specified in the 2009 amended CPA. The swing aircraft were only to be deployed at Air Canada's discretion. This development will not have a material impact on Jazz's business. It does not reduce the minimum guaranteed number of covered aircraft, and will not result in any changes in manpower or annual block hour guidance as the swing aircraft were not contemplated in our current operating plan."
I would imagine this is why ground schools are being cancelled, and RJ courses postponed last month.

For clarification, after the second Q400 delivery (Back up to 125 covered A/C after operating at 123 as per the CPA amending agreement), Jazz was intending to move 1 RJ from the "COVERED A/C" into the "Swing" category for every 1 Q400 up to delivery number 10 (8 aircraft in total), effectively increasing the number of CPA A/C in our fleet from 125 to 133. It looks like AC is now not planning on doing this, so we will continue parking RJ100s starting with the July delivery (3rd) Q400. We will continue to loose 1 RJ a month, for every Q400 we take delivery of up to the total of 15 confirmed orders.

To summarize, we have just lost 8 aircraft the we were planning to operate, and that, at least in some part, the last bid, and subsequent hiring, was built to reflect. This will equal less hiring (i.e. maybe yesterdays G/S was the last one), and I would imagine, significant reductions on the RJ in the next bid (Bid 02-2011), which will coincide with vacancies on the Q400. Effectively I would guess a hiring neutral bid in August where people will be forced to transition from the RJ to the Q400, as one arrives and one leaves, but overall no net increase in number of pilots.

Certainly not the news we were hoping for, but with fuel prices being as they are, and rumours of G/S cancellations, it was not totally unexpected.
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Inverted2
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Re: Jazz will not operate "Swing" aircraft. (Loss of 8 RJs)

Post by Inverted2 »

That would explain why they "postponed" future groundschools... :(
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rudder
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Re: Jazz will not operate "Swing" aircraft. (Loss of 8 RJs)

Post by rudder »

The 'swing' aircraft only existed in the imaginations of some of the Jazz Executive suite and the Chorus BOD. The revised AC CPA fleet guarantee is 125 and that is all that it will ever be. CR has a new (cheap) friend named Skyregional. Wonder if it is within the realm of possibilities that the surplus AC/GECAS CRJ100's show up there?
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DH772
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Re: Jazz will not operate "Swing" aircraft. (Loss of 8 RJs)

Post by DH772 »

And so starts the long downward spiral of Jazz. Getting rid of swing aircraft is the first step in starting the downsize. Give it another month or two and Sky Regional will announce 5-10 more Q's. buckle I suppose for a bumpy ride.
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ChallengerDan
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Re: Jazz will not operate "Swing" aircraft. (Loss of 8 RJs)

Post by ChallengerDan »

DH772 wrote:And so starts the long downward spiral of Jazz. Getting rid of swing aircraft is the first step in starting the downsize. Give it another month or two and Sky Regional will announce 5-10 more Q's. buckle I suppose for a bumpy ride.
:rolleyes: Or maybe SR will operate the CRJ100s..... after all, their low operating cost must offset the fact that the CRJ1 has become a Fuel-aholic, doesn't it? :rolleyes:
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Re: Jazz will not operate "Swing" aircraft. (Loss of 8 RJs)

Post by Localizer »

Maybe they'll announce an additional 14 CRA-705's ... :P
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oh yeah baby
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Re: Jazz will not operate "Swing" aircraft. (Loss of 8 RJs)

Post by oh yeah baby »

this is exactly how rumours start!!!

You will never learn
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Re: Jazz will not operate "Swing" aircraft. (Loss of 8 RJs)

Post by Localizer »

oh yeah baby wrote:this is exactly how rumours start!!!

You will never learn

LOL! .. this is where rumours come from??

Public forum .. if this is where you pick up rumours to run with, then you have issues ..
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BingBong
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Re: Jazz will not operate "Swing" aircraft. (Loss of 8 RJs)

Post by BingBong »

Localizer wrote: LOL! .. this is where rumours come from??

Public forum .. if this is where you pick up rumours to run with, then you have issues ..
Av Canada would make a great daytime drama.....Victor Newman would make a great Calin R. me thinks!
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