Category Archives: Jetlines

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.

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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:

 

Canada Jetlines prepares for takeoff with definitive lease agreement for two Airbus A320 aircraft

Canada Jetlines Ltd. has announced that it has partnered with AerCap, a global leader in aircraft leasing and aviation finance, and has signed a Definitive Lease Agreement for two Airbus A320 aircraft, effective June 12, 2018. Delivery of the two aircraft is expected by the first half of 2019.

AerCap is the world’s largest independent aircraft leasing company with a well-diversified portfolio of high-quality aircraft. They provide aircraft to a global network of approximately 200 airline customers in approximately 80 countries and is recognized as the most active aircraft trader globally. AerCap’s President & Chief Commercial Officer, Philip Scruggs commented, “We are very pleased to welcome our new customer airline, Jetlines, and particularly pleased to play a role in the start-up of their new operations. We wish the board and management team every success and we look forward to working with the Jetlines team as they begin operations.”

The two committed Airbus A320’s are sister aircraft, having virtually identical conformity in design, features, and equipment, allowing Jetlines to expedite the necessary training and maintenance processes to commence operations at an earlier date. The sister aircraft are 12 years old.

Executive Chairman Mark Morabito stated, “Our operations team has worked diligently on securing quality aircraft, carrying out a meticulous vetting process to ensure that the aircraft are fit for Jetlines and our future passengers.” Mr. Morabito continued, “I am pleased to report that we are now positioned to carry out the remainder of work to complete our licencing process and that we are continuing to advance our financing initiatives, personnel recruitment, and airport agreements.”

The pre-existing purchase agreement with Boeing for the 737-MAX’s for delivery in 2023 remains in place. Jetlines plans to use the Airbus planes to support its start-up operations and is not limited from securing a Boeing fleet in future, should the Company decide to do so.

Image: Jetlines.

Proposed Route Map:

 

Jetlines to lease two Airbus A320s in order to start operations

Jetlines (Vancouver) has issued this update:

Canada Jetlines Ltd. provides an update on recent corporate developments related to aircraft acquisition.

Jetlines concluded a term sheet on April 23, 2018 to lease two Airbus A320 aircraft and made a deposit payment of US$876,000. The term sheet is subject to executing a definitive lease agreement and other conditions customary to a transaction of this nature.

Once a definitive lease agreement is concluded for these aircraft, the Company will be able to provide new guidance to the market on its projected start-up date and aircraft delivery schedule.

The Company is targeting the conclusion of a definitive lease agreement before the end of Q2, 2018.

In the interim, Jetlines continues to advance its efforts with personnel recruitment, airport agreements, the licensing process and the financing plan.

The upstart had been previously planning to start operations with Boeing 737s.

Jetlines delays its start-up due to aircraft shortages

Jetlines has issued this update:

Jetlines is pleased to provide an update on certain recent corporate developments related to financing, the regulatory process, aircraft acquisition, personnel additions and launch timeline.

Jetlines has been diligently pursuing a number of initiatives required for the start-up of operations as an ultra-low-cost carrier. Over the last year since Jetlines commenced trading on the TSX Venture Exchange, it has accomplished the following:

  • Appointment of Mr. Stan Gadek as Chief Executive Officer (former CEO of Sun Country Airlines and Senior Vice President Finance, Chief Financial Officer and Treasurer for NYSE listed, AirTran Holdings).
  • Jetlines concluded arrangements to offer service from John C. Munro Hamilton International Airport, Abbotsford International Airport and Halifax Stanfield International Airport. More airport agreements are expected to be announced in the second quarter of 2018.
  • Jetlines substantially advanced the licensing process with the ongoing preparation of manuals and documentation required for the Air Operator Certificate. Jetlines also hired several of the key executives required by Transport Canada including VP Flight Operations, VP Maintenance and Flight Attendant Manager. Further key personnel announcements are expected early in the second quarter 2018.
  • Advanced the financing process by providing detailed materials to interested investors and its investment bankers including definitive route plans, flight schedules, market demand analysis, detailed financial model, balance sheet, level of operations, market study and Canadian airport analysis.
  • Jetlines commenced trading on the OTCQB under the stock symbol JETMF. This has provided more access to U.S. investors and allows Jetlines to better utilize the foreign ownership exemption that was received in December 2016, allowing for more access to necessary capital in order to begin commercial operations.
  • Jetlines assembled a world class aviation board of directors with experience from some of the world’s best ULCC carriers including Wizz Air, easyJet and Spirit among others.

The key items remaining to commence flight operations are the completion of the licensing process, aircraft acquisition and completion of the financing process.

With respect to aircraft acquisition, the current market for leased aircraft has tightened considerably during 2017 and early 2018. The principal reasons are the well documented engine manufacturing issues for the Airbus neo-powered aircraft, the increased demand for the Boeing freighter conversion program for Boeing 737-800s and world-wide traffic demand exceeding projections. All of these factors have led to increased demand and decreased supply of used aircraft available for lease. Jetlines previously secured aircraft under an LOI; however, the lessor was unable to provide a definitive delivery date.

At this stage Jetlines is in advanced negotiations with several major aircraft lessors to secure the aircraft required to support both its start-up and growth plans.

However, it will not attain a June 2018 start-up date as previously projected. Once Jetlines has secured definitive aircraft delivery dates, it will provide new guidance to the market on its projected start-up date. It expects to provide an update announcement in the second quarter of 2018.  In the interim Jetlines continues to advance its efforts with personnel recruitment, airport agreements, the licensing process and the financing plan.

Photo: Jetlines.