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 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 or 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. 11
Agenda Agenda 1 Jazz overview 2 Review of 2007 progress 3 Q1 and beyond 12
Jazz is Canada’s Largest Regional Airline Jazz is Canada’s Largest Regional Airline Whitehorse Yellowknife Terrace Smithers Fort St. John Prince Rupert Goose Bay Grande Prairie Sandspit Fort McMurray Prince George Wabush Gander Deer Lake/ St. John’s Corner Brook Edmonton Sept-Îles Kamloops Comox Gaspé Îles-de-la-Madeleine Vancouver Saskatoon Kelowna Baie-Comeau Calgary Mont-Joli/ Sydney Nanaimo Penticton Rimouski Victoria Bagotville Castlegar Cranbrook Charlottetown Regina Bathurst Seattle Quebec Moncton Winnipeg Rouyn-Noranda Timmins Fredericton Val-d’Or Halifax Saint John Portland Montreal Thunder Bay Sudbury Ottawa Sault Ste. Marie North Bay Kingston Toronto Boston Minneapolis Hamilton Hartford Sarnia Milwaukee London New York Detroit Windsor Newark Cleveland Philadelphia Chicago Pittsburgh Baltimore Sacramento Columbus Indianapolis Washington DC Kansas City St. Louis Raleigh/Durham Nashville Charlotte Los Angeles Atlanta Houston 13
Jazz is Canada’s Largest Regional Airline Jazz is Canada’s Largest Regional Airline 840+ Daily departures 85 Destinations 9.7 M Passengers carried in 2007 14
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 15
Relationship with Air Canada Relationship with Air Canada Serve Serve high Point-to-point low density density markets – by-pass hubs markets – off peak Jazz is integral to Air Canada’s strategy 16
The CPA Defines Our Relationship The CPA Defines Our Relationship Responsibilities Purchases capacity Provides crews Determines routes Airframe maintenance Flight schedules Flight operations Ticket prices Some airport operations Marketing 17
The CPA Benefits Both Carriers The CPA Benefits Both Carriers Flexibility Cost advantages Major competitive advantage Protection from cost volatility Guarantees Long-term agreement 18
Agenda Agenda 1 Jazz overview 2 Review of 2007 progress 3 Q1 and beyond
Four Fundamentals of Success Four Fundamentals of Success Operate Operate reliably, Operate Engage providing excellent efficiently and safely employees customer service profitably 20
Strong Operating Results Strong Operating Results Controllable Controllable Additional on-time flight completion flights performance 84% 99.1% +14,000 21
Expanded Service – 9 New Routes Expanded Service – 9 New Routes Whitehorse Yellowknife Terrace Smithers Fort St. John Prince Rupert Goose Bay Grande Prairie Sandspit Fort McMurray Prince George Wabush Gander Deer Lake/ St. John’s Corner Brook Edmonton Sept-Îles Kamloops Comox Gaspé New Routes: Îles-de-la-Madeleine Vancouver Saskatoon Kelowna Baie-Comeau Calgary Mont-Joli/ Sydney Nanaimo Penticton Rimouski Victoria Bagotville Castlegar Cranbrook Charlottetown Regina Bathurst Seattle Quebec Moncton Winnipeg Rouyn-Noranda Vancouver – Sacramento Timmins Fredericton Val-d’Or Halifax Saint John Portland Montreal Thunder Bay Sudbury Vancouver – Yellowknife Ottawa Sault Ste. Marie North Bay Kingston Calgary – Prince George Toronto Boston Minneapolis Hamilton Hartford Sarnia Calgary – Seattle Milwaukee London New York Detroit Windsor Newark Cleveland Philadelphia Ottawa – Fredericton Chicago Pittsburgh Sacramento Baltimore Columbus Indianapolis Washington DC Ottawa – Moncton Kansas City St. Louis Ottawa – Charlottetown Raleigh/Durham Nashville Charlotte Halifax – Gander Los Angeles Atlanta Halifax – New York Houston 22
Four Fundamentals of Success Four Fundamentals of Success Operate Operate reliably, Operate Engage providing excellent efficiently and safely employees customer service profitably 23
Strong Results in 2007 Strong Results in 2007 Jazz Air LP Year ended December 31 ($000’s) 2007 2006 % Change Operating Revenue 1,381,207 +8.3 1,498,389 Operating Income 143,769 +6.5 153,159 Net Income 140,042 +7.6 150,654 Distributable Cash 136,519 +10.8 151,282 Distributions Declared 98,209 +25.8 123,552 24
Reduced Costs Reduced Costs Controllable cost per available seat mile -2.2 % 25
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 26
Four Fundamentals of Success Four Fundamentals of Success Operate Operate reliably, Operate Engage providing excellent efficiently and safely employees customer service profitably 27
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 28
Four Fundamentals of Success Four Fundamentals of Success Operate Operate reliably, Operate Engage providing excellent efficiently and safely employees customer service profitably 29
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 30
Agenda Agenda 1 Jazz overview 2 Review of 2007 progress 3 Q1 and beyond
Results in Q1, 2008 Results in Q1, 2008 Jazz Air LP Period ended March 31, 2008 ($000’s) Q1 2008 Q1 2007 % Change Operating Revenue 364.2 +8.8 396.4 Incentives 3.1 +25.8 3.9 Operating Income 36.3 -5.4 34.4 Net Income 35.3 -14.3 30.3 Distributable Cash 33.6 -2.08 32.9 32
Growth Opportunities Growth Opportunities Explore new strategic partners Leverage employee expertise Grow charter programs Expand CPA 33
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 34
Our Goals Remain Consistent Our Goals Remain Consistent Operate safely Focus on operating efficiency Goals Deliver on CPA commitments Leverage strengths – grow 35
One of the Best Teams in the Business One of the Best Teams in the Business 36
Annual General Meeting May 8, 2008
Recommend
More recommend
