Annual General Meeting
May 8, 2008
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
Annual General Meeting
May 8, 2008
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CAUTION REGARDING FORWARD-LOOKING INFORMATION Certain statements in this presentation may contain statements which are forward-looking
such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “would”, and similar terms and phrases, including references 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
due to, amongst other things, changing external events and general uncertainties of the
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
information, future events or otherwise, except as required under applicable securities regulations.
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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
Gander Quebec Bagotville Baie-Comeau Fredericton Bathurst Mont-Joli/ Rimouski Gaspé Sept-Îles Wabush Goose Bay Deer Lake/ Corner Brook
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
Chicago Indianapolis Nashville Charlotte Columbus Detroit London Windsor Cleveland Pittsburgh Raleigh/Durham Sudbury North Bay Toronto Sarnia
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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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Serve low density markets Serve high density markets – off peak Point-to-point – by-pass hubs
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Provides crews Airframe maintenance Flight operations Some airport operations Purchases capacity Determines routes Flight schedules Ticket prices Marketing
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Flexibility Cost advantages Major competitive advantage Protection from cost volatility Guarantees Long-term agreement
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Operate efficiently and profitably Operate safely Engage employees
Operate reliably, providing excellent customer service
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Controllable
performance Controllable flight completion Additional flights
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
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
Hartford Boston
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
Operate reliably, providing excellent customer service
Operate efficiently and profitably
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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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Controllable cost per available seat mile
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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
Operate reliably, providing excellent customer service
Operate safely
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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
Operate reliably, providing excellent customer service
Engage employees
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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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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
Operating Income 36.3 34.4
($000’s)
Period ended March 31, 2008
Jazz Air LP
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Expand CPA Grow charter programs Leverage employee expertise Explore new strategic partners
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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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Annual General Meeting
May 8, 2008