Jazz Air Income Fund (TSX: JAZ.UN ) announced today that its December cash distribution of $0.05 per Fund unit covering the period from December 1, 2009 to December 31, 2009 will be paid on January 15, 2010 to unitholders of record at the close of business on December 31, 2009.
Jazz is the second largest airline in Canada based on fleet size and the only airline serving all 10 provinces and two territories. 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 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 significantly reduces Jazz’s financial and business risks, and provides a stable foundation for day-to-day operations and future growth.