Jazz Air To Invest in Pluna

 - May 27, 2010, 11:58 AM

Halifax-based Jazz Air Income Fund has agreed to invest $15 million in Latin American Regional Aviation Holding (LARAH) in return for a 33.3-percent non-voting equity interest in the company and a minority stake in Uruguay’s Pluna Airlines. At the time of closing of Jazz’s investment, LARAH will hold an indirect 75-percent equity interest in Pluna. The government of Uruguay holds the remaining 25 percent.

The airline plans to use Jazz’s $15 million investment, together with another $5 million pledged by the government of Uruguay, to complete its business restructuring and to fund growth. Still subject to a number of legal conditions, the closing would give Jazz a seat on Pluna’s seven-member board of directors.