Canadian regional and charter airline holding company Chorus Aviation is nearing to land 97.3 million Canada dollar ($73.3 million) from rival Air Canada and extend its capacity purchase agreement (CPA) by an additional 10 years.
Chorus plans to use a portion the funds to buy nine additional 76-seat Bombardier CRJ900s, which will be delivered in 2020.
Air Canada will make the investment via subscription of more than 15.5 million class B voting shares at $4.71 per share and it will own about 9.99 percent of Chorus' issued and outstanding class A and B shares.
Chorus Aviation said that the amended CPA will provide growth via the addition of larger-gauge aircraft such as the CRJ900, and will provide $1.9 billion in revenue. In connection with the round, Air Canada will join Chorus Aviation’s board of directors.