HALIFAX, July 28 /CNW/ - Jazz Air Income Fund (TSX: JAZ.UN) announced today that a mutually beneficial agreement has been reached with Air Canada to amend the terms of the Amended and Restated Capacity Purchase Agreement (CPA) between Jazz Air LP ("Jazz") and Air Canada. Jazz Air Income Fund also announced a 40% reduction in cash distributions.

"The amended CPA provides sustainable long term value to Jazz stakeholders as, among other things, the term of the contract has been extended to the end of 2020 and there is a commitment to commence fleet renewal," said Joseph Randell, President and Chief Executive Officer, Jazz. "Jazz is fundamental to serving communities across Canada. The strength in Jazz's cost efficiencies and high quality operational performance is an important part of the solution to the challenges facing Air Canada, and provides low costs to capitalize on growth opportunities."

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