Jazz Air Income Fund Jazz Air Income Fund Maxim Group Growth - - PowerPoint PPT Presentation
Jazz Air Income Fund Jazz Air Income Fund Maxim Group Growth Conference JOE RANDELL President & CEO Allan Rowe Chief Financial Officer NATHALIE MEGANN Director, Corporate Communications and Investor Relations New York City
JOE RANDELL – President & CEO NATHALIE MEGANN – Director, Corporate Communications and Investor Relations
February 2010
November 18, 2010
CAUTION REGARDING FORWARD-LOOKING INFORMATION Certain information in this presentation, and statements made during 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 relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and other uncertain events. Forward-looking statements, by their nature, are based on assumptions, including those described below, and are subject to important risks and
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, risks relating to Jazz’s relationship with Air Canada and Thomas Cook Canada Inc., risks relating to the airline industry, energy prices, general industry, market credit and economic conditions, competition, insurance issues and costs, supply issues, war, terrorist attacks, epidemic diseases, acts of God, changes in demand due to the seasonal nature of the business, the ability to reduce operating costs and employee counts, secure financing, employee relations, labour negotiations or disputes, restructuring, pension issues, 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
November 8, 2010. The forward-looking statements contained in this discussion represent the expectations of the Fund and Jazz as of November 8, 2010, and are subject to change after such date. However, the Fund and Jazz disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or
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Daily departures Destinations Passengers carried in 2009 Employees 790+ 85 8.8 M 5,000
Q400 NextGen aircraft with options for 15 more
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Inc.
easily valued
marketplace today
business
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change
unitholders and our company
and expand our business
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retail taxable investors vs. $0.32 after tax equivalent income under the income trust structure, a 34% increase in after tax income for the same investors (assumes
average marginal tax rate of Quebec and Ontario)
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72.0% 77.3% 72.4% 78.6% 81.1% 79.0%
Q1-Q4 2009 Q1 2010 Q2 2010
(Arrivals within 15 minutes)
Q1-Q4 2009 Q1 2010 Q2 2010
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83.0% 84.0%
Q1 2010 Q1-Q4 2009 Q2 2010
86.0% 84.0%
Q3 2010
81.2%
Q3 2010 Q3 2010
75.0%
Operating revenue Operating income (before amortization of CPA asset) Distributable cash Net income
($ million) Period ended September 30, 2010
Q3 2010 379.0 26.9 19.1 30.6
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Responsibilities
Provides crews Airframe maintenance Flight operations Some airport operations Purchases capacity Determines routes Flight schedules Ticket prices Marketing
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Serve low density markets Serve high density markets – off peak Point-to-point – by-pass hubs
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Flexibility Cost advantages Major competitive advantage Protection from cost volatility Guarantees Long-term agreement
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Mainline Carrier Regional Carrier
CPA Regional Carrier Mainline Carrier Ground & Airport Handling Charters At-risk Flying
CPA
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US and maintain current 25% equity stake
niche markets – solid business plan
component to Pluna’s future success
Argentina, Brazil, Chile and Paraguay
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CPA Charter programs Leverage Strengths New strategic partnerships
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available to secure future financing
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February 2010
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November, 2010