MONTREAL — ********** has successfully completed the transfer of all 15 of its Embraer 175 aircraft, the smallest *** aircraft in **********’s fleet, to Sky Regional to operate the aircraft on behalf of ********** under the capacity purchase agreement between the parties.

Sky Regional now operates 20 aircraft on behalf of **********, under this agreement.

Sky Regional has been an ********** Express partner since May 2011, operating service between Billy Bishop Toronto City Airport and Montreal Trudeau Airport with a fleet of ********** Dash 8 Q400 turboprop aircraft. Since March 2013, Sky Regional has been phasing in the operation of a fleet of Embraer 175 regional *** aircraft on existing ********** short-haul regional routes, primarily from Toronto and Montreal to destinations in the northeast United States including LaGuardia, Newark, Boston, Philadelphia, Chicago and Dallas/Fort Worth, under the ********** Express banner.

Sky Regional currently employs approximately 550 people and is the sole ********** Express operator serving Billy Bishop Toronto City, Philadelphia, Chicago and Dallas/Fort Worth airports.

In addition to Sky Regional, ********** has capacity purchase agreements with its other regional ******* partners, Jazz, Air Georgian and EVAS that operate regional ********** Express flights on behalf of **********.