Jazz Air Income Fund to become Chorus Aviation

Jazz Air Income Fund announced details on Friday of a proposed conversion of the Fund from an income trust to a corporate structure. Subject to certain approvals, units of the Fund will be exchanged for shares in the capital of a new public corporation called Chorus Aviation. The Fund’s obligations with respect to its outstanding convertible debentures will be assumed by Chorus. The deal is expected to be completed on December 31, 2010. This agreement is a result of changes that have been made to the Canadian tax laws which will eliminate certain tax advantages of an income trust structure