Jazz Air Diversifies with New Thomas Cook Deal
Jazz Air LP has recently signed a deal with the travel company Thomas Cook worth around $100 million. Jazz Air is a Halifax based company and it practically sells all of its capacity to Air Canada, but starting next November they will be operating a minimum of 6 Boeings passenger planes for Thomas Cook.
The deal means that Jazz Air will be flying to southerly destinations and runs out in Spring of 2012 with the option of it being extended till 2015 with pricing the only issue. The operating revenue of the company last year was $1.5 billion so this new income see’s an increase of between 6 and 7 percent.
Thomas Cook moved quickly to secure the services of Jazz Air because one of their usual partners flying out to the likes of Canada was Skyservice Airlines Inc but they recently filed for bankruptcy.
The Chief Executive Officer of Thomas Cook North America, Michael Friisdahl, had this to say, “We’re extremely proud to be partnering with Jazz to offer our passengers high quality in-flight services as part of the full Sunquest Vacation experience.”
Jazz Air is set to benefit in the long run even if the financial implications of this new deal aren’t too great at the moment, the fee could rise to as much as $180 million is they choose 11 Boeing aircrafts which will increase the amount of flights and passengers that can be accommodated. As a growing and diversifying business we all could soon be sitting on a Jazz Air flight sooner rather than later.