* Companies complete negotiations, agree on pricing
* Jazz Air LP sees 5 percent growth in flying hours for 2011
* Sees total billable block hours at 400,000-410,000
Reuters -- Canada's Jazz Air LP sealed a five-year flight services agreement with tour operator Thomas Cook Canada Inc and the companies have decided on the pricing for the deal.
Jazz Air LP, a unit of Jazz Air Income Fund, also said it expects about 5 percent year-over-year growth in block hours in 2011 and sees total billable block hours of 400,000-410,000 for the year.
Jazz Air Income Fund, the regional feeder airline for Air Canada, will introduce the new fuel-efficient 74-seater Bombardier Q400 NextGen aircraft in June.
In April, Jazz Air LP signed a flight services deal with the Canadian unit of Thomas Cook to operate flights on its behalf during the November-April winter season.
This agreement is expected to generate about C$100 million in additional annual revenue. Under the deal, Jazz will operate six Boeing 757-200 aircraft to destinations in the Caribbean, Mexico and Central America from Toronto, Ottawa, Montreal and Halifax under the Thomas Cook Canada brand, starting from November 5.
Units of the Halifax, Nova Scotia-based Jazz Air Income Fund closed at C$4.47 Wednesday on the Toronto Stock Exchange.
*Reporting by Ashutosh Joshi