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Chorus Aviation Inc T.CHR

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

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 SleepingGiant64on May 14, 2024 5:12pm
275 Views
Post# 36039720

RE:Fund III

RE:Fund III
Think of it this way:

Fund III buys 100 airplanes, using investor money.
Chorus/Falko lease out those planes to airlines.
Chorus manages it. Makes sure the money gets paid, re-leases planes when airlines default or the lese terms end, some maintenance, etc
Chorus takes a fee (say 1-2%) for managing it.

It's a pretty simple business and the target retuns for investors are 'mid-teens', which sounds pretty damn compelling. So the Falko people need to get busy and drum up some interest.

The market likes this business model because it's just straight fees. You don't have debt on the planes and your costs are lower than the fees, so it's all profit with no leverage.
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