Air Canada to transfer Jazz’s cross-border routes soon

Air Canada is bracing for more stringent steps and has hinted that it is aiming at cutting costs to offset losses. Canada’s national carrier Air Canada recently said that it is considering transferring the operation of some Canada-U.S. transborder regional flights being currently operated by Chorus Aviation Inc.’s Jazz to some other regional carrier. The airline said that this will help it to cut costs.

Air Canada has invited proposals from regional carriers for taking over the operation of some of its existing, short, cross-border routes. These routes are being presently operated by Jazz under the Air Canada Express banner. The airline said that it will replace Jazz and is therefore seeking a new partner to continue operations. These routes are however not being flown by Air Canada’s mainline fleet.

Debra Williams, a spokeswoman for Chorus Aviation Inc., said that Jazz will take part in the bidding process again and still hopes it will be able to continue operating these flights. Jazz is into an agreement with Air Canada which is going to last until 2020. The agreement carries a number of guarantees. Some components of the guarantee includes the mark-up being charged by Chorus to Air Canada, the use of Chorus’ 122 of 127 aircrafts by Air Canada, the amount of time in which they are used, and other contractual obligations.

Air Canada wants that Chorus to reduce the mark-up that it is currently charging. Both the companies are in arbitration over this. The bidding process is however not part of that arbitration process.