Canada Jetlines

Low Cost Carrier
IATA: n/a
Country/Territory: Canada


Originally conceived by its founders in 2006, Canada Jetlines (Jetlines) is a proposed ultra low cost carrier that plans to model itself after other successful ultra-LCCs such as Allegiant Air, Ryanair and Spirit Airlines. The start-up received Stage 1 approval from the Canadian Transportation Agency to operate scheduled services and will begin the process of obtaining its Air Operator's Certificate from Transport Canada. Jetlines plans to operate to “secondary” airports rather than tier I city hubs, focussing on services to destinations in western Canada, including Prince George, Winnipeg, Kamloops, Prince Rupert, Regina, and Edmonton. Jetlines eventually aims to add international destinations such as Orlando, Cancun, Las Vegas and Los Cabos to its network.

The carrier had initially planned to commence services in 3Q2014 from its hub at Vancouver International Airport. However, bad weather had forced the ULCC start-up to postpone its launch. Canada Jetlines stated it will launch within a six-month period after it secures institutional funding. In Apr-2016, Jetlines entered a definitive merger agreement with Jet Metal Corp to launch the start-up. In May-2016, the CTA issued a new state 1 letter, stating the carrier's financial requirement to receive an airline licence is now CAD27 million (USD20 million). The agency said 50% of this amount can be a line of credit. In Nov-2016, Canada Jetlines received an exemption from current foreign ownership rules, which will allow the start-up ULCC to access necessary capital in order to begin operations. The parties are now permitted to conduct domestic air services while having up to 49% foreign voting interests, with no single foreign investor or its affiliates having more than a 25% voting interest. The exemption order was granted for a five-year term ending on 01-Dec-2021. The carrier planned to commence on 01-Jun-2018, but stated it will not achieve the prospective start date and instead will launch on 17-Dec-2019. The launch was postponed again after it failed to satisfy financing conditions.

In Feb-2020, Jetlines entered a definitive agreement with Global Crossing Airlines (GlobalX) to combine Jetlines with GlobalX. Once combined, Jetlines and GlobalX would continue with an operating plan for Canada, including the continued advancement of Jetlines' air operator certificate. The combined entity would initially operate charters with major tour operators from Canada to major US leisure destinations, with aircraft to be branded as Jetlines and operated by GlobalX.

On 23-Jun-2020, GlobalX announced the closure of the business combination between GlobalX and Jetlines. The transaction included the changing of Jetlines' name to Global Crossing Airlines.

On 21-Apr-2021, GlobalX provided an update to the planned spin out of Jetlines: GlobalX and Jetlines entered an arrangement agreement in 2020, pursuant to which the ownership interest of Jetlines will be distributed to the shareholders of GlobalX; On the closing of the transaction, Jetlines and GlobalX will be operated as separate companies with separate management teams and boards of directors.

Canada Jetlines is on track to obtaining its operating licence from Transport Canada in Jun-2022. The carrier plans to launch operations from Toronto Pearson International Airport in summer 2022.

Jetlines received stage 2 approval from the Canadian Transportation Agency (CTA), having met the agency's financial requirements on 24-May-2022. A CTA commercial licence is expected to be issued following the issuance an air operator certificate by Transport Canada. On 27-May-2022, Canada Jetlines received approval from CTA to begin ticket sales prior to issuance of the carrier's commercial licence.

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