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Chorus Aviation Inc T.CHR

Alternate Symbol(s):  CHRRF | T.CHR.DB.B | T.CHR.DB.C | T.CHR.DB.A

Chorus Aviation Inc. is a global aviation solutions provider and asset manager, focused on regional aviation. The Company’s primary business activities include contract flying, managing aircraft on behalf of fund investors and other third-party aircraft investors and/or owners, as well as maintenance, repair and overhaul services and pilot training. The Company operates through Regional Aviation Services segment. The Company offers contracted flying services within North America and also provides medical, logistical and humanitarian flight operations to Canadian and international customers. Its subsidiaries include Jazz Aviation LP, a regional airline in Canada and provider of regional air services under the Air Canada Express brand; Voyageur Aviation Corp., a provider of specialty charter, aircraft modifications, parts provisioning and in-service support services, and Cygnet Aviation Academy, an accredited training academy preparing pilots for direct entry into airlines.


TSX:CHR - Post by User

Comment by Takafujion Mar 01, 2021 12:47pm
171 Views
Post# 32686141

RE:RE:New CPA deal

RE:RE:New CPA dealAnyone have any idea on how to model the 19 dehavilland dash8 300 if they were all turned into regional cargo service?

I have no clue on what would be good numbers to use so I took Cargojet's 2020 revenues which were 668 million, divided by the maximum load capacity of all active planes in their fleet which is 841 mt, this gave me a revenue number of 795,000 per metric ton.

Then I took the load capacity of dash8 300 which is 6mt per plane x 19 planes = 114mt and multiplied 795,000 per metricton to that which gave me an annual revenue of 91 million dollars for that fleet of dash 8-300's. 

Gross margin for cargojet in 2020 was 37%, say that the dehavilands are about 1/3 as efficient as the boeings since they can carry only about 1/4-1/5 of the cargo of boeings 757-200/767-200/300 but I've read that turbo props are cheaper to operate I'm assuming due to fuel efficiency and possibly cheaper overhauls? In addition, as they are going to less common destinations usually that would imply a higher markup due to less competition. So that would be 12% gross margins 1/3 of the 37% of cargojet.

That would give them about 10million which is the difference between the old and new CPA. It'd be nice if someone with industry knowledge to model something out for us if the 19 were turned into a cargo delivery subsidiary.
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