New Purchase – Chorus Aviation

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Hi guys I am back to talk about a new purchase I made only a day after purchasing Exco Technologies. On March 8th I added to my position in Chorus Aviation which is in my Tax Free Savings Account (TFSA). I recently wrote a review of Chorus Aviation which you can read here.

So what is Chorus Aviation? Well Chorus which is headquartered in Halifax, Nova Scotia is a company that has various regional aviation interests including Jazz and Voyageur.

Jazz

In Canada Jazz operates the largest regional airline and the third largest airline based on passengers carried. Jazz had a Capacity Purchase Agreement (CPA) with Air Canada. Under which Air Canada purchases the capacity of covered aircraft operated by Jazz under the Air Canada Express Banner. Through Jazz Chorus provides a significant part of Air Canada’s domestic and trans border network to 57 destinations in Canada and 13 in the United States. The CPA is in effect until December 2025. The planes under the CPA have a seating capacity of between 30-78 passengers.

air-canada-express-jazz-dhc-8-400-c-ggoi-04apr-yyz-tmk46-m

Voyageur Aviation

On May 1st, 2015 Chorus Aviation purchased Voyageur Aviation. Voyageur provides specialized contract flying operations to Canadian and International customers. The company operates medical, logistical and humanitarian flights serving blue chip clients in Canada and Africa, comprised primarily of government entities and international non-governmental organizations. Voyageur also has a AeroTech division which specializes in engineering and advanced maintenance operations.

Reasons For Purchasing More Shares

  • Long-term labour contracts with all employees expires in 2025.
  • Long-term Capacity Purchase Agreement (CPA) with Air Canada expires in 2025.
  • Created new subsidiary called Chorus Aviation Capital to diversify revenue.
  • Stock yields 6.55%

Transaction Details

Before purchasing these new shares in the company I owned 273 shares which were purchased last February at a cost of $5.64 per share. On March 8th I purchased another 159 shares at $7.10 a share for a total cost of $1,148.80. So I now currently own  432 shares with an average cost of $6.22 per share.

Dividends

Chorus pays a monthly dividend of $0.04 so with my 159 additional shares my income will increase by $6.36 per month or $76.32 a year. Combined the 432 shares will provide me $17.28 a month or $207.36 a year.

I didn’t go into too much depth with this report as it is a stock I already own, and as mentioned above I wrote a review a couple months ago on the stock. I hope you enjoyed reading this post.

Do you own Chorus Aviation? Is it on your radar? What do you think of my purchase please feel free to share your thoughts.

Thanks for reading

Matthew

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3 thoughts on “New Purchase – Chorus Aviation

  1. I tend to stay away from stocks relating to the airline industry. One of my dislikes for these stocks are the dependency on oil price. It’s just too volatile for me

    Like

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