Chorus Aviation provides update on benchmarking arbitration timing

HALIFAX, May 3, 2013 /CNW/ – Chorus Aviation Inc. (“Chorus”) (TSX: CHR.B CHR.A CHR.DB) today provided an update on the expected timing of the arbitration relating to the benchmarking provisions in the Capacity Purchase Agreement (‘CPA’) with Air Canada.

On February 20, 2013 Chorus confirmed the next hearing before the arbitration panel would take place in April 2013. The hearing occurred as scheduled, but the parties did not complete their respective submissions within the time available. As a result, further hearing dates have been scheduled for July 2013 and a date for oral argument in September 2013.

“The benchmarking arbitration is proving to be an extended process that unfortunately won’t likely be concluded before the fourth quarter of this year,” said Joe Randell, President and Chief Executive Officer, Chorus. “We remain confident in our position that the controllable mark-up of 12.5% in our Capacity Purchase Agreement with Air Canada should not change as a result of this benchmarking exercise. While this process is outside of our control, we continue to believe this period of uncertainty will result in a positive conclusion.”