Chorus Aviation Inc. · TSX:CHR
Chorus Aviation — Jazz Air Income Fund — Shareholder Meeting (May 2008)
28 slides from Chorus Aviation's shareholder meeting presentation, May 8, 2008
Slide 1: Annual General Meeting
Annual General Meeting May 8, 2008
Slide 2: Disclaimer
Disclaimer CAUTION REGARDING FORWARD-LOOKING INFORMATION Certain statements in this presentation 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”
Slide 3: Agenda
Agenda 1 Jazz overview 2 Review of 2007 progress 3 Q1 and beyond 12
Slide 4: Jazz is Canada's Largest Regional Airline
Jazz is Canada’s Largest Regional Airline Whitehorse Yellowknife Terrace Smithers Fort St. John Prince Rupert Goose Bay Sandspit Grande Prairie Fort McMurray Prince George Wabush Gander Deer Lake/ St. John’s Corner Brook Edmonton Sept-Îles Comox Kamloops Gaspé Îles-de-la-Madeleine Vancouver Kelowna
Slide 5: Jazz is Canada's Largest Regional Airline
Jazz is Canada’s Largest Regional Airline Daily departures 840+ Destinations 85 Passengers carried in 2007 9.7 M 14
Slide 6: Canadian-made Fleet
Canadian-made Fleet Only Canadian regional airline flying regional jets in Canada 137 Dash 8 and Canadair Regional Jets Efficient aircraft Two types = cost effectiveness 15
Slide 7: Relationship with Air Canada
Relationship with Air Canada Serve Serve high Point-to-point low density density markets – by-pass hubs markets – off peak Jazz is integral to Air Canada’s strategy 16
Slide 8: The CPA Defines Our Relationship
The CPA Defines Our Relationship Responsibilities Purchases capacity Provides crews Determines routes Airframe maintenance Flight schedules Flight operations Ticket prices Some airport operations Marketing 17
Slide 9: The CPA Benefits Both Carriers
The CPA Benefits Both Carriers Flexibility Cost advantages Major competitive advantage Protection from cost volatility Guarantees Long-term agreement 18
Slide 10: Agenda
Agenda 1 Jazz overview 2 Review of 2007 progress 3 Q1 and beyond
Slide 11: Four Fundamentals of Success
Four Fundamentals of Success Operate reliably, Operate Operate Engage providing excellent efficiently and customer service safely employees profitably 20
Slide 12: Strong Operating Results
Strong Operating Results Controllable Controllable Additional on-time flight completion flights performance 84% 99.1% +14,000 21
Slide 13: Expanded Service – 9 New Routes
Expanded Service – 9 New Routes Whitehorse Yellowknife Terrace Smithers Fort St. John Prince Rupert Goose Bay Sandspit Grande Prairie Fort McMurray Prince George Wabush Gander Deer Lake/ St. John’s Corner Brook Edmonton Sept-Îles Comox Kamloops Gaspé New Routes: Vancouver Nanaimo Kelowna Penticton C
Slide 14: Four Fundamentals of Success
Four Fundamentals of Success Operate reliably, Operate Operate Engage providing excellent efficiently and customer service safely employees profitably 23
Slide 15: Strong Results in 2007
Strong Results in 2007 Jazz Air LP Year ended December 31 ($000’s) 2007 2006 % Change Operating Revenue 1,498,389 1,381,207 +8.3 Operating Income 153,159 143,769 +6.5 Net Income 150,654 140,042 +7.6 Distributable Cash 151,282 136,519 +10.8 Distributions Declared 123,552 98,209 +25.8 24
Slide 16: Reduced Costs
Reduced Costs Controllable cost per available seat mile -2.2% 25
Slide 17: Operating Accomplishments
Operating Accomplishments New maintenance and engineering systems – contributes to on-time performance Fuel efficiency initiative – lowers costs, reduces environmental footprint Installed in-seat personal entertainment systems – improves customer experience 26
Slide 18: Four Fundamentals of Success
Four Fundamentals of Success Operate reliably, Operate Operate Engage providing excellent efficiently and customer service safely employees profitably 27
Slide 19: Industry-Leading Safety Practices
Industry-Leading Safety Practices Completed IATA Operational Safety Audit registration Achieved 7.4% decrease in lost time injury ratio Implementing integrated Safety Management System 28
Slide 20: Four Fundamentals of Success
Four Fundamentals of Success Operate reliably, Operate Operate Engage providing excellent efficiently and customer service safely employees profitably 29
Slide 21: Engage Employees
Engage Employees Latest tools and customer service strategies JazzNet – new employee intranet Jazz Hands – employee community involvement program Profit sharing - $12.2 million paid to employees 30
Slide 22: Agenda
Agenda 1 Jazz overview 2 Review of 2007 progress 3 Q1 and beyond
Slide 23: Results in Q1, 2008
Results in Q1, 2008 Jazz Air LP Period ended March 31, 2008 ($000’s) Q1 2008 Q1 2007 % Change Operating Revenue 396.4 364.2 +8.8 Incentives 3.9 3.1 +25.8 Operating Income 34.4 36.3 -5.4 Net Income 30.3 35.3 -14.3 Distributable Cash 32.9 33.6 -2.08 32
Slide 24: Growth Opportunities
Growth Opportunities Explore new strategic partners Leverage employee expertise Grow charter programs Expand CPA 33
Slide 25: Jazz Air Income Fund
Jazz Air Income Fund Change in tax status – 2011 Monitoring situation Delivered on commitment: $1.01 distribution per unit Remain confident in future cash flows Payout ratio a conservative 81.7% Maintaining current distribution 34
Slide 26: Our Goals Remain Consistent
Our Goals Remain Consistent Operate safely Focus on operating efficiency Goals Deliver on CPA commitments Leverage strengths – grow 35
Slide 27: One of the Best Teams in the Business
One of the Best Teams in the Business 36
Slide 28: Annual General Meeting
Annual General Meeting May 8, 2008
Jazz Air Income Fund — Shareholder Meeting (May 2008) on 6ix