TSE:CHR

Chorus Aviation Inc (CHR.TO)

23.89
-0.20 (0.83%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
223 watching
0
DON'T BUY
Feeder airline for Air Canada. A good business model. They have a contract with Air Canada and as long as they keep costs low they will do a good job. He is generally not a big player of income trusts.
DON'T BUY
Doesn't like airlines in general. Seem to be money pits. This one has nothing but goodwill in the balance sheet.
WEAK BUY
Strong relationship with Air Canada. Given the tough times and lines have been going through, you can expect a renegotiation. Can see some growth through the use of the Toronto Island Airport. Distribution is not sustainable and you could see it get in cut by half but it would still be pretty good. High risk.
DON'T BUY
Airline industry has a history of poor results and he is not a fan. Very difficult environment. Pay out will go down when they convert to a corporation.
RISKY
Have a reasonably watertight agreement with Air Canada. You have a good idea what will happen for the next year or two. Trading at 2 or 3 times free cash flow, which is good for a distressed debt investor. But what happens if Air Canada goes bankrupt and the agreement doesn’t hold up – in the hands of the bankrupts court. So speculative.
DON'T BUY
Think they'll have trouble maintaining the dividends. Have to negotiate their support agreement with their parent, Air Canada.
DON'T BUY
Concerned about distributions at current levels. Wouldn’t be a buyer in it.
COMMENT
31% distribution indicates market is expecting a cut. Has a CPA agreement with Air Canada that provides them with a minimum amount of block hours. Amounts to about an 85% payout ratio so there is not much danger of a cut. Starting to look better as unions have ratified an agreement allowing Air Canada to operate outside of bankruptcy proceedings. Have also renegotiated bank lines. Starting to look at this and may Buy shortly.
DON'T BUY
Company under a lot of stress. Higher energy prices would put them under more pressure.
COMMENT
Not subject to the pressures that other airlines are. It sells blocks of time to Air Canada (AC.A-T) for a fixed price. They are only on the hook for controllable parts such as operating the planes and logistics/backups. Yielding 29%, which tells you the market thinks Air Canada is going to chop the amount of time it buys.
DON'T BUY
Doesn't like the airline business so doesn't invest in them.
PAST TOP PICK
(A Top Pick Sept 5/07. Down 22%.) Has been unfairly treated. Too much concentration on their ability to meet distributions. Had to make some capital expenditures last quarter. Have an older fleet. 100% payout. Doesn't think they will cut distributions. Still likes.
COMMENT
Regional airline. Benefiting from lower fuel prices. Have an agreement with Air Canada. 18% distribution. Generally speaking, he does not like airlines.
COMMENT
(Market Call Minute.) Have a fixed price contract with Air Canada so they are not too exposed to the unpleasant things happening in the airlines. If you want to be in an airline, this and Westjet (WJA-T) would be the ones.
DON'T BUY
(Market Call Minute.) Would stay away from this one.
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