Chorus Aviation Inc. updates on benchmarking arbitration decision

HALIFAX, Oct. 3, 2012 /CNW/ – Chorus Aviation Inc. (“Chorus”) (TSX: CHR.B CHR.A CHR.DB) announced that Jazz Aviation LP (‘Jazz’) has received the decision in the arbitration relating to the benchmarking provisions within its Capacity Purchase Agreement (‘CPA’) with Air Canada to compare the rate of growth of Jazz’s controllable costs to those of a specified group of comparable operators. The three-member arbitration panel, with one member dissenting, concluded the component unit cost driver (‘CUCD’) put forward by Air Canada is the appropriate methodology. However, the arbitration panel also agreed certain controllable cost adjustments are to be made in Jazz’s favour. Jazz will seek clarity from the arbitration panel with respect to certain other issues which the panel offered to provide in the award.

Chorus will provide an update as soon as possible.