Category Archives: Jetlines

Jetlines secures additional funding, to lease two Airbus A320s from SmartLynx Airlines

Jetlines has made this announcement:

Jetlines provides an update on recent corporate developments related to its planned launch of airline operations in 2019. Jetlines has 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. As a result of the Company’s progress as well as the current status of financing initiatives, Jetlines has set a launch of commercial service targeted for December 17, 2019 using Vancouver (YVR) as Jetlines’ home airport.

As a result of this determination, 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.”

Jetlines announces planned routes out of Montreal Saint-Hubert Longueuil Airport

Canada Jetlines Ltd has announced that it intends to offer nonstop flights from Aéroport Montréal Saint-Hubert Longueuil (YHU) to several cities in Canada including cities in Quebec, as well as US destinations including Florida and New York.

Montreal Saint Hubert Airport is being expanded as part of a plan to position itself as a low-cost airport serving the Montérégie region of Quebec and Montréal. The airport’s location is closer to Montréal’s business and leisure core than Montréal’s main airport, Pierre Elliott Trudeau International Airport. Montreal Saint Hubert Airport is expected to be able to support ULCC airlines like Jetlines as early as the end of next year. The airport recently upgraded its runway, a project that received support from the federal government, who injected $13 million into the project. Montreal Saint-Hubert also has plans to build a new passenger terminal building.

The Company’s ability to service this airport is subject to the completion of the airline licensing process and the receipt of applicable regulatory approvals.

In other news, Canada Jetlines Ltd. and the Québec City Jean Lesage International Airport (YQB) have announced they have reached an agreement in principle. Canada Jetlines intends to provide future ultra-low fare service from the airport.

In 2017, Québec City Jean Lesage International Airport doubled its capacity by opening a brand-new international terminal. Since its privatization in 2000, the airport has tripled its traffic going from 643,000 passengers to 1.8 million in 2018. YQB remains one of the fastest growing airports in Canada, with an annual compound passenger growth rate of 7.2% per year for the last 15 years.

Québec City has long been recognized as a premium tourist destination for Canadians, Americans, and international visitors. In 2016, Québec City had over 4 million tourists and that number continues to increase annually. Jetlines is excited about its plans to come into the market and provide a low-cost alternative to locals and tourists alike.

Jetlines to be based in Vancouver

Jetlines made this announcement on social media:

Did you know that many of today’s most successful ULCCs fly out of primary airports while continuing to offer ultra low fares to their passengers? More travel and exploration are possible because of this!

Which ULCC’s you ask? Well, we’re talking about Spirit, easyJet, RyanAir, Vueling, Viva Aerobus, and AirAsia – to name a few.

We hear you Canada – convenience to get to and from the airport is important! But so is price. And we achieve both low-cost travel wishes by making YVR (Vancouver) home (above).

We can’t wait to welcome you onboard in the future.

The airline also issued this statement:

Jetline is pleased to announce that it has chosen Vancouver International Airport (YVR) to be its home airport and primary base of operations when it begins flight operations targeted for later this year. Jetlines has filed and received confirmation from YVR that all airport slots needed to operate their initial network using their first two Airbus A320 aircraft will be available.

Jetlines selected YVR as their future base for operations due to it being the second busiest airport in Canada, serving more than 25.9 million passengers in 2018. It is also the busiest airport in British Columbia and the airport with the largest catchment area. The airport has more than 2.5 million people living less than 30 minutes drive from it. As well as it being the closest airport to Vancouver’s city center, the airport is also extremely well connected to the city by transit with a rapid transit rail.

In addition to the desirable location and facilities, Jetlines was attracted to YVR due to their competitive rates and charges. The airport’s ConnectYVR program provides airlines a standard rate structure for landing and terminal fees. This program rewards airlines for efficiency and growing their services at YVR providing further incentive for Jetlines to build their base of operations out of Vancouver.

CEO Javier Suarez stated “I am extremely excited to be able to use Vancouver International Airport as our primary base of operations once we launch. The Greater Vancouver area population, cost to operate from the airport, and transit accessibility, linked with the enormous tourist attraction that Vancouver has, provides Jetlines with a massive business opportunity. Having launched more than 300 routes in my career with most of them out of primary airports, I have no doubt that the Vancouver Airport will offer Jetlines the opportunity to launch and profitably operate a large number of routes.”

“We welcome the news that Jetlines is planning to use YVR as their base of operations once they launch. It is great to hear that this Canadian-operated airline is making positive progress to begin offering service. We are excited that Jetlines intends to offer flights from YVR across Canada and to several sun destinations as this will provide added choice for our passengers in the future,” said Anne Murray, Vice President, Airline Business Development and Public Affairs, Vancouver Airport Authority.

The Company’s ability to service this airport is subject to the completion of the airline licensing process and the receipt of applicable regulatory approvals.

The prospective airline also announced it intends to provide ultra-low fare service from both the Kelowna International Airport (YLW) and the Winnipeg James Armstrong Richardson International Airport (YWG).

Previously announced routes:

SmartLynx Airlines to operate Airbus A320s for Jetlines during the winter seasons

Jetlines has issued this statement:

Canada Jetlines Ltd. is pleased to announce that it has entered into a subscription agreement with SmartLynx Airlines SIA for financing commitments of up to $15 million.

SmartLynx specializes in full-service ACMI (Aircraft-Crew-Maintenance-Insurance) aircraft lease services and is the leading ACMI provider in Europe for Airbus A320 aircraft. SmartLynx aircraft has been utilized by major airlines including Norwegian, EasyJet, Thomas Cook and TUI.

The net proceeds of the Offering will be used to further the business objectives of Jetlines in launching an ultra-low cost airline carrier in Canada, including advancing the licensing process, augmenting the leadership team with operations and commercial personnel, branding and marketing activities, as well as advance internet, digital media and IT systems initiatives.

In connection with the Offering, Jetlines Operations and SmartLynx will enter into an agreement whereby SmartLynx shall provide ACMI (Aircraft-Crew-Maintenance-Insurance) services to Jetlines operations during the following eight winter seasons. This agreement will allow Jetlines to increase its capacity in the market during the very busy Canadian Winter Season.

In addition, SmartLynx and the Company will enter into a two-year agreement that will provide Jetlines with services and certain proprietary software meant to support Jetlines during the early stage of their operations.

It is expected that the Offering will close on or before December 24, 2018.

Jetlines selects CAE for Airbus A320 pilot training

Canada Jetlines Ltd. has announced the signing of an exclusive Airbus A320 pilot training agreement with global aviation training leader CAE.

Starting in the first half of 2019, CAE instructors will train Jetlines’ pilots at CAE’s training centre in Montreal using the latest training equipment suite.

In addition, the airline’s pilots will have access, on-site and remotely, to the most advanced training material, leveraging Pelesys, a CAE company, for Airbus A320 comprehensive ground-school training solutions. This holistic training solutions experience reduces the time spent in the classroom and will allow crews to be more productive while ensuring their technical knowledge is maintained at the highest standards.

Jetlines has completed a second set of advance lease payments to AerCap, a global leader in aircraft leasing and aviation finance, for two Airbus A320 aircraft.

Delivery of Airbus A320 msns 2594 and 2663 are expected by early Q2 of 2019.

Both aircraft are currently with Air New Zealand and are approaching end of lease service with the airline. Jetlines has made another deposit to AerCap for USD $438,000 per the terms of the agreement and in demonstration of the continued partnership. To date Jetlines has made payments totalling USD $2,190,000 toward securing these aircraft.

Planned Route Map:

Jetlines advances AOC process with submission to Transport Canada

Canada Jetlines Ltd. is pleased to announce that the Company successfully submitted operations manuals to Transport Canada in order to receive its Air Operator Certificate (AOC) in preparation for first flight in 2019.

The Company has achieved a major milestone in the Project Plan with the submission of the operations manuals. Weekly updates have been provided to the Principal Operations Inspector and Jetlines has completed the amendment of required manuals to Airbus A320 operations and has provided these documents to the regulatory authority.

The Company will now focus on completing the second milestone through the amendment to training programs and completion of the contracts required for Airbus training. The final milestone will be achieved through conducting interviews, hiring and the training of all staff to prepare for aircraft delivery in the second quarter of 2019.

“With the submission of our manuals to Transport Canada, Jetlines has realized a significant milestone in our operations. We look forward to continuing to work with Transport Canada in order to further our licencing process and satisfying all requirements”, stated CEO, Javier Suarez. “We are proud of the operations team and the work they have carried out to date. Their hard work and talent have brought us one step closer to enabling Jetlines to offer a true ultra-low fare service for the long haul” added Executive Chairman, Mark Morabito.

Jetlines also announces that is has closed its private placement with Mr. Lukas Johnson for aggregate gross proceeds of $700,000. Mr. Johnson was issued 1,627,907 variable voting shares at a price of $0.43per share. The shares issued in the private placement are subject to certain escrow conditions regarding future sale of stock including a statutory four month hold period that expires on January 13, 2019.

In other news, Jetlines has announced the appointment of Mr. Javier Suarez as Chief Executive Officer of Canada Jetlines after being promoted from the role of Chief Commercial Officer.

Lukas Johnson commented, “…I understand the need for a true ultra-low-cost carrier airline in Canada and that is why I am investing $700,000 into the company. Javier has a great deal of experience and knowledge, and I have absolute confidence in his ability to successfully step into this role. I will be assisting with continued progression of the launch plans for the next two months to ensure a smooth transition.”

Mr. Javier Suarez has over 15 years of airline experience with expertise in most commercial functions, strategy and operations, and we are more than excited for Javier to step into his new role as CEO and to take Canada Jetlines through its first flight.

All images by Jetlines.

Proposed Route Map:

Jetlines goes with Airbus

Jetlines (Vancouver) has apparently decided to go with Airbus. It has reportedly cancelled its order with Boeing although neither party has confirmed the report.

Jetlines has previously stated it will commence operations with two Airbus A320 aircraft.

The prospective airline continued;

“The majority of ultra-low cost carriers worldwide operate with the Airbus A320 fleet based on its fuel-efficient narrow-body framework that supports a high-density seat configuration, making it an ideal choice for Jetlines to start operations with.”

It now appears the airline will now only operate with one type.

Previously Boeing and Jetlines had announced an order for five 737 MAX 7s, valued at $438 million at current list prices. The deal originally included purchase rights for an additional 16 737 MAXs.

Canada Jetlines Ltd. is set to become Canada’s first ultra-low fare airline.

All images by Jetlines.

Planned routes for the new airline: