Annual General Meeting May 8, 2008 Disclaimer Disclaimer CAUTION - - PowerPoint PPT Presentation

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Annual General Meeting May 8, 2008 Disclaimer Disclaimer CAUTION - - PowerPoint PPT Presentation

Annual General Meeting May 8, 2008 Disclaimer Disclaimer CAUTION REGARDING FORWARD-LOOKING INFORMATION Certain statements in this presentation may contain statements which are forward-looking statements. These forward-looking statements are


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Annual General Meeting

May 8, 2008

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Disclaimer Disclaimer

CAUTION REGARDING FORWARD-LOOKING INFORMATION Certain statements in this presentation may contain statements which are forward-looking

  • statements. These forward-looking statements are identified by the use of terms and phrases

such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “would”, and similar terms and phrases, including references to

  • assumptions. Such statements may involve but are not limited to comments with respect to

strategies, expectations, planned operations or future actions. Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and

  • uncertainties. Any forecasts or forward-looking predictions or statements cannot be relied upon

due to, amongst other things, changing external events and general uncertainties of the

  • business. Such statements involve known and unknown risks, uncertainties and other factors

that may cause the actual results, performance or achievements to differ materially from those expressed in the forward-looking statements. Results indicated in forward-looking statements may differ materially from actual results for a number of reasons, including without limitation, general industry, market and economic conditions, war, terrorist attacks, changes in demand due to the seasonal nature of the business, the ability to reduce operating costs and employee counts, employee relations, labour negotiations or disputes, restructuring, pension issues, energy prices, currency exchange and interest rates, changes in laws, adverse regulatory developments or proceedings, pending and future litigation and actions by third parties, as well as the factors identified in the Risk Factors section of Jazz Air LP’s and Jazz Air Income Fund’s restated annual MD&A dated February 19, 2008, and interim MD&A dated May 7, 2008. The forward-looking statements contained in this discussion represent Jazz’s expectations as of May 7, 2008, and are subject to change after such date. However, Jazz disclaims any intention

  • r obligation to update or revise any forward-looking statements whether as a result of new

information, future events or otherwise, except as required under applicable securities regulations.

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Jazz overview Review of 2007 progress Q1 and beyond

Agenda Agenda

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Regina Winnipeg Thunder Bay Kingston Los Angeles Houston Sacramento Fort St. John Kelowna Castlegar Cranbrook Calgary Whitehorse Smithers Terrace Prince George Prince Rupert Sandspit Comox Nanaimo Seattle Portland Vancouver Kamloops Penticton Ottawa Montreal Rouyn-Noranda Val-d’Or

Jazz is Canada’s Largest Regional Airline Jazz is Canada’s Largest Regional Airline

Gander Quebec Bagotville Baie-Comeau Fredericton Bathurst Mont-Joli/ Rimouski Gaspé Sept-Îles Wabush Goose Bay Deer Lake/ Corner Brook

  • St. John’s

Saint John Halifax Moncton Charlottetown Îles-de-la-Madeleine Sydney Sault Ste. Marie Victoria Yellowknife Fort McMurray Grande Prairie Edmonton Saskatoon Washington DC Newark Hartford Boston New York Baltimore Philadelphia Hamilton Atlanta Timmins Minneapolis Milwaukee Kansas City

  • St. Louis

Chicago Indianapolis Nashville Charlotte Columbus Detroit London Windsor Cleveland Pittsburgh Raleigh/Durham Sudbury North Bay Toronto Sarnia

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Daily departures Destinations Passengers carried in 2007

Jazz is Canada’s Largest Regional Airline Jazz is Canada’s Largest Regional Airline

840+ 85 9.7 M

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Canadian-made Fleet Canadian-made Fleet

Only Canadian regional airline flying regional jets in Canada 137 Dash 8 and Canadair Regional Jets Efficient aircraft Two types = cost effectiveness

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Relationship with Air Canada Relationship with Air Canada

Serve low density markets Serve high density markets – off peak Point-to-point – by-pass hubs

Jazz is integral to Air Canada’s strategy

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The CPA Defines Our Relationship The CPA Defines Our Relationship

Responsibilities

Provides crews Airframe maintenance Flight operations Some airport operations Purchases capacity Determines routes Flight schedules Ticket prices Marketing

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The CPA Benefits Both Carriers The CPA Benefits Both Carriers

Flexibility Cost advantages Major competitive advantage Protection from cost volatility Guarantees Long-term agreement

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Jazz overview Review of 2007 progress Q1 and beyond

Agenda Agenda

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Operate efficiently and profitably Operate safely Engage employees

Four Fundamentals of Success Four Fundamentals of Success

Operate reliably, providing excellent customer service

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Strong Operating Results Strong Operating Results

84% 99.1% +14,000

Controllable

  • n-time

performance Controllable flight completion Additional flights

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Whitehorse Yellowknife Smithers Fort St. John Fort McMurray Grande Prairie Terrace Prince Rupert Sandspit Comox Nanaimo Victoria Seattle Vancouver Kamloops Penticton Edmonton Saskatoon Regina Winnipeg Timmins Thunder Bay Sault Ste. Marie Minneapolis Milwaukee Kansas City

  • St. Louis

Chicago Indianapolis Nashville Atlanta Charlotte Columbus Detroit Sarnia London Windsor Cleveland Pittsburgh Raleigh/Durham Washington DC Baltimore Philadelphia Sudbury North Bay Toronto Hamilton Kingston Ottawa Newark New York Montreal Rouyn-Noranda Val-d’Or Quebec Bagotville Baie-Comeau Los Angeles Houston Saint John Fredericton Bathurst Halifax Moncton Charlottetown Mont-Joli/ Rimouski Gaspé Îles-de-la-Madeleine Sydney Sept-Îles Wabush Goose Bay Gander Deer Lake/ Corner Brook

  • St. John’s

Hartford Boston

Expanded Service – 9 New Routes Expanded Service – 9 New Routes

New Routes:

Vancouver – Sacramento Vancouver – Yellowknife Calgary – Prince George Calgary – Seattle Ottawa – Fredericton Ottawa – Moncton Ottawa – Charlottetown Halifax – Gander Halifax – New York

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Prince George Kelowna Castlegar Cranbrook Calgary Sacramento Portland

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Operate safely Engage employees

Four Fundamentals of Success Four Fundamentals of Success

Operate reliably, providing excellent customer service

Operate efficiently and profitably

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Strong Results in 2007 Strong Results in 2007

Operating Revenue Operating Income Distributable Cash Distributions Declared

2006

1,381,207 143,769 136,519 98,209

2007

1,498,389 153,159 151,282 123,552

% Change

+8.3 +6.5 +10.8 +25.8 Net Income 140,042 150,654 +7.6

($000’s)

Year ended December 31

Jazz Air LP

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Reduced Costs Reduced Costs

  • 2.2%

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Controllable cost per available seat mile

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Operating Accomplishments Operating Accomplishments

New maintenance and engineering systems

– contributes to on-time performance

Fuel efficiency initiative

– lowers costs, reduces environmental footprint

Installed in-seat personal entertainment systems

– improves customer experience

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Engage employees Operate efficiently and profitably

Four Fundamentals of Success Four Fundamentals of Success

Operate reliably, providing excellent customer service

Operate safely

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Industry-Leading Safety Practices Industry-Leading Safety Practices

Completed IATA Operational Safety Audit registration Achieved 7.4% decrease in lost time injury ratio Implementing integrated Safety Management System

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Operate safely Operate efficiently and profitably

Four Fundamentals of Success Four Fundamentals of Success

Operate reliably, providing excellent customer service

Engage employees

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Engage Employees Engage Employees

Latest tools and customer service strategies JazzNet – new employee intranet Jazz Hands – employee community involvement program Profit sharing - $12.2 million paid to employees

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Jazz overview Review of 2007 progress Q1 and beyond

Agenda Agenda

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Results in Q1, 2008 Results in Q1, 2008

Operating Revenue Incentives Net Income Distributable Cash

Q1 2007

364.2 3.1 35.3 33.6

Q1 2008

396.4 3.9 30.3 32.9

% Change

+8.8 +25.8

  • 14.3
  • 2.08

Operating Income 36.3 34.4

  • 5.4

($000’s)

Period ended March 31, 2008

Jazz Air LP

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Growth Opportunities Growth Opportunities

Expand CPA Grow charter programs Leverage employee expertise Explore new strategic partners

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Jazz Air Income Fund Jazz Air Income Fund

Change in tax status – 2011 Monitoring situation Delivered on commitment: $1.01 distribution per unit Remain confident in future cash flows Payout ratio a conservative 81.7% Maintaining current distribution

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Our Goals Remain Consistent Our Goals Remain Consistent

Goals

Deliver on CPA commitments Focus on operating efficiency Operate safely Leverage strengths – grow

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One of the Best Teams in the Business One of the Best Teams in the Business

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Annual General Meeting

May 8, 2008