Canada Jetlines Ltd. and SmartLynx Airlines SIA are issuing this press release to confirm that the previously announced $7.5 million financing is still proceeding.
Jetlines and SmartLynx agreed to restructure the financing such that it will be completed by way of a convertible debenture instead of subscription receipts. For regulatory reporting purposes, SmartLynx was required to issue a press release regarding the restructured financing in order to confirm that financing is no longer being completed by way of subscription receipts.
On July 29, 2019, Jetlines and SmartLynx entered into a definitive subscription agreement with respect to the $7.5 million convertible debenture financing. The amended offering terms are set to match the financing terms agreed to with InHarv ULCC Growth Fund.
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:
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.
Proposed Route Map:
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 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.
Canada Jetlines Ltd. has announced that it intends to offer ultra-low fare service from Halifax Stanfield International Airport (YHZ), when it begins flight operations targeted for Summer 2018.
Stan Gadek, CEO of Jetlines stated, “We are pleased to announce the selection of Halifax Stanfield International Airport as our eastern operations base. Halifax is the leading airport of the Atlantic provinces and we look forward to lowering the cost of air travel to and from Atlantic Canada with our Ultra-Low Fares.” This announcement marks the third airport that Jetlines has agreed to terms with, in addition to Hamilton, ON and Abbotsford, BC, as we continue to implement our strategy of becoming Canada’s first true Ultra-Low Cost Carrier (ULCC).
Canada is spawning two new ultra low-fare airline proposals. Both are based on the Spirit Airlines, Allegiant Air and Ryanair models where are all services are unbundled and passengers select and pay for whatever they want. All services have a charge amount with an attractive low base ticket price.
Canada Jetlines (Vancouver) is a new startup airline proposal that intends to establish low fare flights out of Vancouver International Airport with Airbus A319s.
Read the full story from the Financial Post: CLICK HERE
Jet Naked will offer fares at less than 60% of those currently sold by Air Canada and WestJet.
Read the full story from the Financial Post: CLICK HERE
Both prospective airlines are in the raising capital investor phase.