Air Georgian and Regional 1 Complete Joint Venture

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Air Georgian and Regional 1 Complete Joint Venture

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Air Georgian and REGIONAL 1 Airlines enter joint venture to form Regional Air Express Ltd.

R1 gives us a platform to aggressively pursue both domestic and international charter opportunities, while allowing Air Georgian to remain entirely focused on meeting and exceeding the needs of our partner Air Canada.

Air Georgian Limited (“AGL”), a leading Canadian charter provider and Capacity Purchase Agreement (“CPA”) airline, headquartered in Mississauga, Ontario, and Regional 1 Airlines (“R1”), headquartered in Calgary, Alberta, a subsidiary of Avmax Group Inc., a fully integrated aviation company with operations in Canada, the United States and Africa, have completed a joint venture through the creation of a parent company, Regional Express Aviation Ltd. (“REAL”), based in Calgary, Alberta.

This strategic transaction, officially announced on September 12, 2013, positions REAL as a unique, fully integrated aviation company leveraging the strong airline management and operational background of Air Georgian and the technical, geographical and asset strengths of Avmax. Air Georgian and R1 will both benefit from having access to the world’s largest private fleet of Dash 8 and CRJ series aircraft, over $100 million in spare parts and domestic maintenance bases in Halifax, Montreal, Kingston, Toronto, Calgary and Vancouver. International operations will be supported through Avmax maintenance bases in Great Falls, Montana, Jacksonville, Florida, Nairobi, Kenya and N’djamena, Chad.

Air Georgian will continue to focus on its long-term CPA relationship with Air Canada, its core business. AGL currently operates a fleet of 16 Beechcraft 1900D aircraft under the brand name Air Canada Express.

Regional 1 Airlines will be rebranded as R1 and will grow its business of providing specialized air charters, with particular attention to the transportation needs of customers in Canada’s resource sector. In addition, R1 will continue to leverage its expertise in international operations, specializing in ACMI contracts in remote regions, as well as continuing to support the United Nations World Food Programme and other peacekeeping and humanitarian programmes.

“I would like to thank the dedicated team of people from Avmax and Air Georgian who have worked on this project allowing us to bring together two great aviation brands,” said Eric Edmondson, CEO of REAL. “R1 gives us a platform to aggressively pursue both domestic and international charter opportunities, while allowing Air Georgian to remain entirely focused on meeting and exceeding the needs of our partner Air Canada.”

The combined operations will utilize Beechcraft 1900D, de Havilland DHC 8 100/200, DHC 8 300 and CRJ 100/200 aircraft types, with the ability to quickly add additional larger gauge aircraft types with the long term goal of positioning the operating brands under REAL as major Canadian players in the 18-76 seat turbo-prop and jet market. Air Georgian will continue to operate and provide maintenance and support in the corporate jet charter market in Toronto, as well as offering third-party pilot and technical aircraft training to the airline and corporate aviation sectors.

”We would like to welcome Air Georgian to the Avmax family and congratulate the dedicated staff from both groups on completing this merger,” said Avmax Group Inc. CEO, John Binder. He added, “Our goal is to continue providing full service solutions to our customers.”

About Air Georgian

Air Georgian became a regional carrier for Air Canada in 2000, initially operating as Air Alliance. Today, Air Georgian operates under the brand Air Canada Express, focusing on transborder and domestic airline operations carrying over 350,000 Air Canada passengers per year from Toronto's Pearson International Airport, Montreal's Pierre Elliott Trudeau International Airport, Halifax's Robert L. Stanfield International Airport and Calgary International Airport to 19 Canadian and U.S. destinations.

Air Georgian has been providing aviation services and charter flight solutions for more than 25 years. Air Georgian also operates and/or maintains a fleet of corporate jets from its base in Toronto.

Air Georgian is an IATA registered airline and recently achieved the coveted ARGUS Platinum Audit Rating along with IS-BAO Stage 1 registration.

About REGIONAL 1 Airlines

Regional 1 Airlines is a Canadian company operating within the Avmax corporate group. Calgary based Avmax Group Inc. is a group of companies, which includes Avmax Aircraft Leasing, Avmax Aviation Services, Avmax USA, Avmax Chad and REGIONAL 1 Airlines. Through these companies Avmax provides worldwide solutions to all aviation needs including Heavy Maintenance, Repair and Overhaul, Painting, Modifications, Reconfigurations, Mobile Repair Parties, Import/Export Services, Lease Returns and Refurbishments, Aircraft Leasing, Spares Sales and Support, Business Aircraft Interiors, ACMI Operations and Charters, Avionics Sales, Avionics & Instrument Service and Installations, and is an Authorized Service Centre for most Major Avionics Manufacturers.

Avmax Aircraft Leasing is the world's largest private owner of de Havilland DHC 8 Series aircraft. Other types available include ATR 72, BA 146, and CRJ series aircraft. Avmax Spares maintains a large inventory of DHC 8 and CRJ components through a global supply chain for both new OEM certified parts and used components, as well as ground support equipment. Western Avionics is Canada's largest dedicated avionics service company providing repair, modification, integration, distribution and most recently calibration services. Avmax Canada provides heavy maintenance, modifications and MRP's through its Maintenance Repair and Overhaul MRO located in Calgary with a focus on DHC 8, BA 146, CRJ and similar aircraft types. The Avmax MRO holds Transport Canada, EASA and FAA approvals. Avmax USA includes Heavy Maintenance Centres in Great Falls (GTF), Montana, and Jacksonville (JAX), Florida, which are approved for CRJ, DHC 8, Embraer 135/145, Embraer 170/175 and BA 146 aircraft, while the Great Falls facility boasts a new state of the art paint facility. Business aircraft interiors are managed through the Avmax Executive Aircraft Interiors business in Montreal.

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Jacquie Courtney
Air Georgian Limited
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