http://www.tradingmarkets.com/.site/...0News/2103385/

HALIFAX, Dec. 30, 2008 (Canada NewsWire via COMTEX) -- JAZ.UN | Quote | Chart | News | PowerRating -- Jazz Air LP ("Jazz") today provided an update on the continuing negotiations with Air Canada regarding the establishment of new rates for controllable costs that will become payable by Air Canada under the Capacity Purchase Agreement (CPA) in respect of the years 2009 to 2011 (inclusive). The parties have agreed to continue direct negotiations until January 31, 2009. If an agreement regarding the new rates is not reached by that date, either party may refer the matter to commercial arbitration, as provided in the CPA.
Once finalized, the new rates will be retroactive to January 1, 2009, and the parties will reconcile the amounts paid to the amounts owing under the new rates such that the parties will be in the same position they would have been in had the new rates been in effect as of January 1, 2009.

In order to respect the integrity of these negotiations Jazz, will not provide additional comment at this time.