Chorus Aviation said it has completed the previously announced sale of its regional aircraft leasing segment.
The transaction includes the sale of Falko, which bills itself as the world’s largest lessor and asset manager focused solely on the 70- to 130-seat aircraft segment.
“As we close this transaction, we are moving forward with a stronger financial position for our company,” said Colin Copp, president and chief executive officer, Chorus, in a statement.
“The significant deleveraging and improved liquidity resulting from this sale will enable us to implement a sustainable capital return program for our shareholders and fund steady growth in our aviation services businesses.”
Falko is being acquired by affiliates of investment funds managed by HPS Investment Partners, LLC.
“With the support of HPS and its senior executives, with whom the Falko management team has a long-standing relationship, I firmly believe that Falko will continue to excel in our segment of the leasing market and further build upon the success of the past decade,” said Jeremy Barnes, chief executive officer of Falko.
Barnes will continue to lead Falko, alongside the existing senior management team, the company said in a release. At the date of completion, Falko had 226 aircraft under management, on lease to 39 customers.
Chorus also announced the planned retirement of Jolene Mahody, the company’s executive vice-president and chief strategy officer, effective in January 2025.
Mahody has had a 32-year career with Chorus and its predecessor companies.
Meanwhile, Randolph deGooyer has been appointed chief operating officer of Chorus, effective Jan. 1.
Randolph is president of Jazz Aviation, the company’s largest subsidiary and the largest regional operator in Canada. Jazz provides regional services under the Air Canada Express brand.
Doug Clarke, vice-president of finance and business services at Jazz, will replace Randolph as president of Jazz.
“I thank Jolene for her contributions over her 32 years with Chorus, including playing a central role in the lead up to today’s announcement to reposition our business,” said Copp.
“I wish Randolph and Doug the very best in their new roles and look forward to their contributions to Chorus and Jazz, as we embark on a new chapter for our business.”
Chorus also announced it is reducing its board of directors by 50 percent in order to trim corporate overhead.
“We are grateful to the directors who are departing for their capable guidance over the years and, most recently, for their invaluable counsel throughout the last year, as we worked on the divestiture of our leasing business. I wish them all the best,” said Copp.
