Chorus Aviation and the new Air Canada Express

    This is the kind of post that I usually would put on Workathon(my other blog on Blogger).The catalyst for this post has come from the recent Chorus Aviation quarterly report where it briefly mentioned that it would be consolidating with Air Canada Express.Air Canada Express was set up originally as a non-profit organization.In 2011 Air Canada decided to retire the Jazz brand (the forerunner to Chorus Aviation) and to create Air Canada Express. Air Canada's earnings have moved up each year since 2011but it needs to make profit form it's feeder systems.However the popular press reported that in in 2015 Air Canada had a loss of $250 million.That aside it would be beneficial for Air Canada Express to make a healthy profit.
        Air Canada Express carriers
  The organization was set up in 2011.But in 2011 Central Mountain Air ceased operating under the Air Canada Express brand.And Jazz Air changed it's name to Chorus Aviation.Now there were four carriers -Georgian Air Lines,Chorus and two other small carriers.All four carriers remain.In 2015 Air Canada Express had 171 aircraft and 141 were owned by Georgian and Chorus.And Chorus intends to add up to 10 more aircraft in 2017 that will be used for Express.However at the present time Express prices are set and controlled by Air Canada.In order to serve the market better and earn more profit Air Canada is going to have to loosen the revenue price strings sooner or later.
          Express Profits

  Air Canada will have to make some changes to Express to start making more profit here.And in order to make Chorus and Georgian Air Lines more motivated they will have to earn a substantial percentage of gross profit.This blog suggests a 50-50 split but that could take a number of years to reach.Georgian and Chorus will have to make their own arrangement but Georgian has quite a few less aircraft.Another possibility is for Chorus to gradually acquire Georgian but that will take a few years also.                                      use Blogdaleupsome for analysis of small caps;get better information on small caps withBlogdaleupsome ;