Air Canada 2010 Annual Report Download - page 33

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2010 Management’s Discussion and Analysis
33
On October 4, 2010, Air Canada announced that it settled the terms of a long term commercial carrier operating agreement
with the Toronto Port Authority, the operator of Billy Bishop Toronto City Airport. The conclusion of that agreement is
subject to certain conditions not yet completed, including entering into an agreement with the operator of the terminal,
City Centre Terminal Corp., for lease of terminal space at the airport. Also, on October 4, 2010, Air Canada announced that it
entered into a capacity purchase agreement with Sky Regional Airlines Inc., an associated company of Skyservice Business
Aviation, to operate, on behalf of Air Canada, flights to and from Billy Bishop Toronto City Airport. The date on which Air
Canada will resume operations at this airport remains to be determined.
Finally, Air Canada entered into lease agreements with a lessor for five Bombardier Dash 8-400 aircraft. Sky Regional
Airlines Inc. will sublease and operate these Dash 8-400 aircraft on behalf of Air Canada pursuant to the terms of the
capacity purchase agreement.
At December 31, 2010, Jazz’s operating fleet was comprised of 123 aircraft operating under the Jazz CPA, a decrease of 7
aircraft from December 31, 2009. Jazz’s covered fleet had an average age of 15.8 years at December 31, 2010, comprised
of the following aircraft:
t 22 Bombardier CRJ-100 aircraft;
t 25 Bombardier CRJ-200 aircraft;
t 16 Bombardier CRJ-705 aircraft;
t 34 Dash 8-100 aircraft; and
t 26 Dash 8-300 aircraft.
During 2011, seven Dash 8-400 aircraft, to be purchased by Jazz, will be introduced into the Jazz fleet and five Bombardier
CRJ-100 aircraft, owned by Air Canada, will be removed, increasing Jazz’s covered fleet to 125 aircraft.