RE: RE: RE: RE: RE: What's with the slamming of pe This info is from the 2010 Annual Report from Jazz. I found it on the Jazz website under "investors" and then "financial reports".
It has been awhile since I looked at it, but I went back and found it. The section on Risk Factors starts on page 30 of the report and is a good read. It shows just how dependent jazz is on AC for many services that are required to run the business.
The part about the covered aircraft is on page 33 of the report.
COVERED AIRCRAFT REDUCTIONS
Subject to regulatory restrictions, the CPA does not preclude Chorus
from entering into capacity purchase agreements with, or providing airline
services to, or making investments in, other carriers as long as Chorus’
ability to perform its obligations under the CPA is not impaired as a result.
However, if Chorus enters into an agreement with another carrier to
provide regional airline services (other than charter fl ights), whether on a
capacity purchase or other economic basis, Air Canada will have the right
to reduce the number of Covered Aircraft, on a one-for-one basis, by the
number of aircraft to be operated under such other agreement, thereby
reducing Chorus’ ability to earn revenue from Air Canada.
They also speak in other sections about how all the airport gates that Jazz uses are under Air Canada's name,and if they stopped letting Jazz use them, they don't know if they could secure other gate access at any airports.
I encourage all here to take the time to go and have a look at this report and the risk factor section. Not trying to scare anyone away from this. But it is important to see how tightly they are tied together. Jazz could not walk away and keep going on as a business, AC holds all the cards and pulls all the strings in this relationship.