Jazz Air Income Fund announced (26-Apr-2010) that it has agreed to invest USD15 million in Latin American Regional Aviation Holding Corp (LARAH) in return for a 33.3% non-voting equity interest in the company. LARAH holds an indirect 75% equity interest in Pluna Lineas Aéreas Uruguayas SA (Pluna). The remaining 25% equity interest in Pluna is held, indirectly, by the Uruguayan Government. [more]
Jazz Air: "This investment provides the potential for significant returns for Jazz. The South American air travel market is one of the world's fastest growing and this investment provides Jazz with an exciting opportunity to participate in that growth. We chose to invest in Pluna because we see the value and opportunity in the niche markets they serve, and we believe they have a solid business plan. Jazz has spent the last three years seriously considering and evaluating opportunities for diversification and growth, and we believe this transaction is another solid step in this direction." Joseph Randell, President and Chief Executive Officer, Jazz Air. Source: Company statement.