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article imageNova Scotia government to invest $16.5 million in Jazz Aviation

By Andrew Moran     Jul 16, 2012 in Business
Halifax - In order to create jobs in the province, the Nova Scotia government announced that it will invest $16.5 million in Jazz Aviation. The subsidy is expected to generate 150 jobs in a province that has one of the highest unemployment rates in Canada.
On Thursday, Jazz Aviation, a subsidiary of Chorus Aviation Inc., announced it would be closing its base in London, Ontario, which would cost the city approximately 200 jobs. The decade-old airline will begin to make its transition east, according to the company in a press release.
At a news conference Monday, Nova Scotia Premier Darrell Dexter announced that his government will invest $16.5 million over a five-year period in the airline. The province would provide this funding to create 150 jobs in management, maintenance and technical support.
The subsidy package includes a $12 million interest-bearing payable loan, $2 million to recruit, train and develop new workers and skills upgrades for current employees and a $2.5 million forgivable loan.
“Jazz's decision to expand its operations in Nova Scotia reinforces that this province is a great place to live, work and raise a family," said the New Democratic Party Nova Scotia Premier. "Today, the province is helping Jazz create and maintain hundreds of good jobs in Nova Scotia. It is another example of how this government is growing the province's economy and helping to create and preserve jobs that Nova Scotians can count on."
Furthermore, the company will purchase a new head office building. It will also renovate its Halifax airport location to expand its systems operation control centre, its heavy maintenance base and administration.
“With the support of the Province of Nova Scotia, we will significantly expand our heavy maintenance hangar, convert our administrative building into a world-class operations centre and establish a new corporate headquarters," said Joe Randell, President and Chief Executive Officer of Chorus. "This is part of our overall strategic plan to increase our efficiency and cost competitiveness; thereby improving our operating economics and delivering more value to our stakeholders."
Nova Scotia suffers from an unemployment rate of 9.6 percent, the third-highest in the country.
More about nova scotia government, jazz aviation, Halifax, Chorus Aviation Inc, London
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