Chorus Aviation Inc

CHR-T

Converting to a corp and management believes the distribution is sustainable when they convert. Doesn’t see a lot of growth at a reasonable price. Looking for other avenues of growth, which will delay things.

He did not like this as a income trust. It is folly as having an airline as an income trust. Would not go near this.

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.

Doesn't like airlines in general. Seem to be money pits. This one has nothing but goodwill in the balance sheet.

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.

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.

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.

Think they'll have trouble maintaining the dividends. Have to negotiate their support agreement with their parent, Air Canada.

Concerned about distributions at current levels. Wouldn’t be a buyer in it.

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.

Company under a lot of stress. Higher energy prices would put them under more pressure.

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.

Doesn't like the airline business so doesn't invest in them.

(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.

Regional airline. Benefiting from lower fuel prices. Have an agreement with Air Canada. 18% distribution. Generally speaking, he does not like airlines.