Jazz Air IPO on hold

Airline Industry Information, Sept 30, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

ACE Aviation Holdings Inc (TSX: ACE.B.T) will delay an initial public offering of its regional airline Jazz Air.

The change in ACE's plans to offer shares in Jazz through an income trust structure was made today (30 September). The decision came after the Canadian government stopped providing advance tax rulings on income trust offerings pending a tax review. The company said that management felt that it was appropriate to refrain from making a filing until prevailing market conditions warrant it.

According to media sources, Jazz Air has 105 aircraft and flies 683 flights a day to 72 Canadian and US cities. Research Capital Corp analyst Jacques Kavafian said this week that Jazz could be worth CAD1.3bn or about a third of ACE's market value.

ACE has previously successfully divested part of its customer loyalty points programme, Aeroplan, using a similar scheme.

((Comments on this story may be sent to aii.feedback@m2.com))