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Jetlines

Low Cost Carrier
Startup
IATA: n/a
ICAO: n/a

About

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 has received Stage 1 approval from the Canadian Transportation Agency to operate scheduled services and will shortly 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. On 15-Dec-2014, the start-up announced an order for five 737 MAX 7s. The order, valued at USD438 million, includes purchase rights for an additional 16 737 MAXs and some conversion rights for the 737-8 MAX. The aircraft are scheduled for delivery from 2021. Canada Jetlines also entered a LoI for two Boeing 737-800NG aircraft with a major US-based aircraft leasing company, scheduled for delivery in Apr-2018. The carrier plans to operate with four Boeing 737-300 aircraft in its initial start-up phase.

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 it's 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 revised its commencement date to 01-Jun-2018.

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