Tuesday,  June 25, 2019  12:03 am

Canada Jetlines launch stalled until December 2019


Canada Jetlines launch stalled until December 2019
Christine Hogg

Christine Hogg is the Associate Digital Editor at PAX Global Media. Prior to joining PAX, she obtained her Honours BA in Journalism from the University of Toronto. Upon graduating, she went on to write for several travel publications while travelling the world. Her longest trip was a three-week stint in Europe, and the shortest was a 16-hour adventure in Iceland. Get in touch: christine@paxglobalmedia.com.

Canada Jetlines' official launch has been delayed once more.

The proposed newest member of Canada's LCC family first made the news backin 2014, when Canada Jetlines signed a purchase deal with Boeing for up to 21 B737 Max aircraft, in keeping with the company’s plans to launch as a low-cost carrier the following year.

READ MORE: Canada Jetlines to fly from YHU

In September 2017, the airline began plotting out routes, promising service from Waterloo International Airport and John C. Munro Hamilton International Airport, starting summer 2018.

A rocky start

The company said it wanted to offer ultra-low fare service to the major markets in Canada and select destinations in the U.S., Mexico and the Caribbean, and tickets were supposed to go on sale in spring 2018.

In January 2018, Canada Jetlines founder, Jim Scott, left the company to join competitor Flair Airlines as the new CEO.

Now, Canada Jetlines has set a launch of commercial service targeted for Dec. 17, 2019 using Vancouver (YVR) as Jetlines’ home airport.

In their latest press release, the airline states that they've made significant progress with respect to the airport agreements, commercial agreements and personnel additions required to launch operations. It has also announced financing transactions with SmartLynx Airlines SIA for up to $15 million and a Korean special purpose fund led and established by InHarv Partners Ltd. for up to $14 million.

So, what happened?

Jetlines and AerCap have mutually agreed to terminate the leases for two Airbus A320 aircraft, and Jetlines has entered into a letter of intent with its partner, SmartLynx Airlines SIA, for the lease of two alternate Airbus A320 that will be available for delivery in Q4 2019 in line with the expected commencement of Jetlines’ operations.

The two aircraft will have the same configuration as the AerCap aircraft, with 180 ACRO seats. The letter of intent is subject to executing a definitive lease agreement and other conditions customary to a transaction of this nature.

Executive chairman, Mark Morabito commented, “I am pleased with the Jetlines strategy of launching for the winter peak, in time for the holidays. The leased aircraft are on favorable terms as a result of our partnership with SmartLynx and this decision is expected to help Jetlines deliver better results than originally anticipated. In addition to our financing announcements with SmartLynx and InHarv, the Company continues to work with other groups in effort to secure the rest of the capital required for our start-up.”

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