Air Canada is taking five Bombardier Dash8-Q400 aircraft on lease that were previously operated by Frontier's subsidiary Lynx Aviation, CAO understands.
The carrier announced last month it had signed a letter of intent with a lessor for the five aircraft that will be operated on the Toronto City airport-Montreal route.
One aircraft, MSN 172, a 2007-vintage aircraft equipped with PW150A engines, has been delivered. It was delivered new to Lynx Aviation and financed under a 15-year US leveraged lease with Wells Fargo Northwest NA as the trustee.
Metlife Capital was the equity provider while Export Development of Canada was the debt provider of a sale and leaseback structure closed by Lynx. The other four aircraft are MSNs 165, 168, 170 and 172.
Air Canada has concluded a capacity purchase agreement with Sky Regional Airlines, an associated company of Canadian aviation service provider Skyservice Business Aviation. The regional carrier will sublease and operate the Q400 fleet on behalf of Air Canada out of the Billy Bishop Toronto City airport.
Services begin in February 2011.