July 30 (Reuters) - Jazz Aviation owner Chorus Aviation ( CHRRF )

said on Tuesday it would sell its regional aircraft

leasing segment for about $1.9 billion to investment fund

manager HPS Investment Partners LLC.

The deal, which includes $814 million in the form of cash

and $1.1 billion in aircraft debt, is expected to close by the

end of the year.

"This transaction will allow us to significantly reduce

our debt and corporate financings, leaving Chorus with strong

and predictable free cash flows from our long-term contracts,"

said Chorus CEO Colin Copp.