Air Georgian Limited

Air Georgian Limited

September 12, 2013 09:00 ET

Air Georgian and Regional 1 Airlines Sign MOU to Merge

Air Georgian Limited, headquartered in Mississauga, Ontario, and Regional 1 Airlines, headquartered in Calgary, Alberta, sign an MOU to merge under one management team with an anticipated closing date of September 30, 2013 pending regulatory approval.

MISSISSAUGA, ONTARIO--(Marketwired - Sept. 12, 2013) - Air Georgian Limited (AGL), a leading Canadian charter provider and Capacity Purchase Agreement (CPA) airline, has signed a memorandum of understanding with Regional 1 Airlines (R1), a subsidiary of Avmax Group Inc., a fully integrated aviation company with operations in Canada the United States, Africa and Afghanistan. Regional 1 Airlines and Air Georgian Limited will merge operations under one management team through the creation of a parent holding company.

Air Georgian will continue to focus primarily on its CPA relationship with Air Canada. AGL currently operates B1900 aircraft under the brand name of Air Canada Express. R1 will focus on expanding its domestic presence, specializing in serving the natural resource sector. R1 will further expand upon its existing 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 programs.

This strategic merger will allow the new combined entity to position itself as a unique, fully integrated airline leveraging the technical, geographical and asset strengths of Avmax and the professional management and strong operational background of Air Georgian. Air Georgian and Regional 1 Airlines will 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 in Africa.

Eric Edmondson will assume the President and CEO role at the newly formed parent company, as well as the role of President at both Air Georgian and Regional 1 Airlines. Daniel Revell will continue to be the CEO of Air Georgian and John Binder will continue in his role as CEO of Regional 1 Airlines. Scott Monsen will become the CFO & VP Finance at the parent company and its subsidiaries. Daniel Bockner will be the VP, Flight Operations & Security, while Brad Warren will fill the role of VP, Maintenance & Technical. Rick Giacomuzzi will hold the position of VP, Finance at Regional 1 Airlines. This merger does not impact the current structure or operations of any other subsidiary within AvMax Group Inc.

"I look forward to the opportunities presented by this strategic merger of two industry leaders," said Edmondson. "We are excited about our continued support of and dedication to our main partner Air Canada under the brand name of Air Georgian with its own dedicated and professional management team focused solely on bringing value to our CPA relationship. Regional 1 Airlines gives us a platform to aggressively pursue both domestic and international charter opportunities with significant existing expertise in operating ACMI leases, overseas field operations and remote environment start-ups."

Upon closing, the combined operations will utilize Beechcraft 1900D, de Havilland DHC 8 100, 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 brands as major players in the 18-76 seat turbo-prop and jet market. Air Georgian will continue to operate, maintain and support the corporate jet charter market in Toronto as well as offering third-party training to the airline and corporate aviation sectors.

"We look forward to capitalizing on the strengths of Air Georgian, Regional 1 Airlines and Avmax Group," said Avmax Group Inc. CEO John Binder. "Our goal will be to provide full services solutions to our customers."

About Air Georgian

Air Georgian became a Tier III partner of Air Canada in 2000, operating as Air Alliance under a Capacity Purchase Agreement (CPA). Today Air Georgian operates under the brand Air Canada Express, focusing on transborder and domestic airline operations carrying over 350,000 passengers per year for Air Canada from Toronto's Pearson International Airport, Montreal's Pierre Elliott Trudeau International Airport, Halifax's Robert L. Stanfield International Airport and Calgary's 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.


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 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 42/72, BAe 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, BAe 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 BAe 146 aircraft, while the Great Falls facility boasts a new state of the art paint facility.

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