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.”
Cooperation between the two companies began in 2016 when Latvian based ACMI provider wet-leased 2 aircraft to Belgium airline for a busy summer season.
The collaboration proved to be successful and continued during the following seasons with the increasing number of units leased each year.
At the end of 2018, SmartLynx Airlines and TUI Airlines Belgium reached their most ambitious agreement to date.
Starting in 2019, for 3 summer seasons in a row, 4 SmartLynx aircraft will be flying under TUI flight numbers sharing best business practices together. Belgium is considered to be the base for the 2019 operations and the bases for the remaining contract term will be decided.
Top Copyright Photo (all others by the airline): SmartLynx Airlines (Latvia) Airbus A320-211 YL-BBC (msn 142) AYT (Ton Jochems). Image: 907247.
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.
In December 2017 SmartLynx signed a long-term damp lease agreement for 2018 with Jet2.com.
According to the agreement between SmartLynx Airlines Ltd. and Jet2.com, SmartLynx will damp lease one 220-seat Airbus A321-200 with Latvian registration mark of YL-LCV (msn 2216) to Jet2.com from May 15, 2018 until October 31, 2018. The aircraft will operate from the base in Birmingham Airport (BHX), UK.
Smartlynx took delivery of YL-LCV on December 15, 2017 from Macquarie Airfinance Acquisitions Ltd. (Ireland).
Aircraft will fly to holiday destinations such as Rhodes, Tenerife, Lanzarote, Larnaca, Palma de Mallorca, Menorca, Ibiza, Malaga, Fuerteventura etc.
SmartLynx had a successful collaboration with Jet2.com in 2017.
In December 2017 SmartLynx Airlines Ltd. signed a long-term wet lease agreement for 2018 with the German leisure airline Condor Flugdienst GmbH.
According to the agreement between SmartLynx and Condor, SmartLynx will wet lease to Condor a 220-seat Airbus A321-200 with the Latvian registration mark of YL-LCQ (msn 2211) from January 7, 2018 to March 31, 2018. The aircraft will operate from the base in Munich Airport (MUC), Germany.
The aircraft will fly to holiday destinations such as Rhodes, Tenerife, Lanzarote, Larnaca, Palma de Mallorca, Menorca, Ibiza, Malaga, and Fuerteventura.
Condor is a new partner of SmartLynx.
In other news, in 2017 SmartLynx introduced a new livery, now applied to ES-SAM.
All photos by SmartLynx.
SmartLynx route map:
Video: YL-LCQ was previously operated for Thomas Cook Airlines:
According to the agreement between SmartLynx Airlines Estonia OU, the Estonian subsidiary of SmartLynx Airlines Ltd., and TUI Airlines Belgium N.V. signed in November 2017, SmartLynx will wet lease three Airbus A320 swith Estonian registration marks ES-SAO (msn 936), ES-SAK (msn 888) and ES-SAS (msn 1725) to TUI Airlines Belgium.
The aircraft seating configuration is 180 Y all economy, MTOW 77 tons.
The lease term for all three aircraft differs, the total term of the leases ranges from April 16, 2017 until October 30, 2018.
All aircraft will operate from the base in Brussels, Belgium.
This is a continuation of a successful collaboration initiated between these two airlines in 2016.
At the beginning of 2017, SmartLynx wet leased two aircraft Airbus A320 to TUI Airlines Belgium.
In November 2017, SmartLynx Airlines signed a long-term wet-lease contract with easyJet. According to the contract, SmartLynx will lease to easyJet six 180-seat Airbus A320: four with Latvian registration marks (YL-LCT, msn 2233; YL-LCU, msn 1762; YL-LCS, msn 566 and YL-LCN, msn 662) and two with Estonian registration marks (ES-SAO, msn 936 and ES-SAQ, msn 984). The lease term for all aircraft is from January 7 until March 31,2018.
All aircraft will operate from Tegel Airport in Berlin, Germany.
This is a continuation of a successful collaboration between the two airlines in the beginning of 2017 when SmartLynx wet leased three aircraft A320s to easyJet.
Astraeus' Boeing 737-76N G-STRH (msn 32737) arrives at Rome (Fiumicino) from Manchester with Manchester United fans for the match with Barcelona. Copyright Photo: Aldo Bidini.
Trawel Fly (Bergamo-Orio al Serio) is a new airline operating from the Milan area (Bergamo and Malpensa) and Verona to holiday destinations such as Olbia, Cagliari, Naples, Catania, Crotone, Crete and Rhodes. Operations commenced on May 30 with a charter flight from Bergamo to Olbia with a leased Astraeus Boeing 737-76N G-STRH (msn 32737) painted in full red, green and white colors of Trawel Fly. Scheduled operations began on June 6 with a Bergamo-Crotone roundtrip. The company also employs SmartLynx Airlines to operate the Milan (Malpensa)-Crotone route and Seagle Air to operate the Verona-Crotone route.