Tag Archives: Canada Jetlines

Jetlines to start operations this summer from Toronto

Canada Jetlines has announced it will begin operations out of Toronto Pearson International Airport with a targeted start date in the summer of 2022.

Toronto Pearson is Canada’s largest airport, and pre-COVID served 50.5 million arriving and departing passengers annually.

Canada Jetlines will operate out of the airport with a fleet of Airbus family aircraft, starting with the A320.

Canada Jetlines will operate to international destinations throughout the U.S., Mexico, Caribbean, and domestic cities in Canada.

Charter Operations are targeted to commence in the summer of 2022.

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CAE and Canada Jetlines, Ltd. sign exclusive 5-year pilot training agreement

CAE has announced that it has signed an exclusive 5-year training agreement with Canada Jetlines, Ltd. Under the agreement, CAE will train Jetlines pilots on the CAE 7000 XR Airbus A320 full-flight simulator (FFS) at the CAE Montreal Training Centre.

Jetlines anticipates its inaugural flight in the spring of 2022, offering Canadians more selection and more economical options to fly to sun destinations in the southern United States, Caribbean, and Mexico.

Canada Jetlines, Ltd. selected the Airbus A320 as its fleet standard due to the aircraft’s best-in-class operating economics, customer comfort and fly-by-wire technology. The company will begin servicing the flying public in 2022.

Jetlines’ first Airbus A320 is painted

Jetlines (Canada Jetlines) will take delivery of its first Airbus A320 in January.

Airbus A320-214 C-GCJL (msn 4175, ex OE-IAV) was painted at Shannon.

Global Crossing Airlines reports a loss of $5.26 million in its first quarter, now operates for Havana Air, will fly for Jetlines, introduces a new livery

GlobalX (Global Crossing Airlines) Airbus A320-214 N276GX (msn 2695) LAS (Nick Dean). Image: 955771.

Global Crossing Airlines (GlobalX) issued this financial report for its first quarter:

Significant highlights and milestones for the quarter include:

  • Obtained its US FAA Aircraft Operating Certificate as a US 121 Flag and Supplemental Carrier
  • Obtained its Certificate of Public Convenience and Necessity for Foreign Charter Air Transportation from the US DOT to Fly Internationally
  • Entered Revenue Service on August 7, 2021 with one Airbus A320 Aircraft; Three aircraft in operation by September 30, 2021
  • Signed leases for one Airbus A321 converted freighter and two A320 passenger aircraft; Signed letters of intent for one A321 converter freighter and one A320 passenger plane

Global Crossing Airlines Group, Inc. “GlobalX” reported its financial results for its first quarter of revenue operations which occurred in the third quarter ended September 30, 2021, including revenue of $3.1M and net operating loss of $5.26M or ($.10) per diluted share. Included in GlobalX’s operating results are an estimated $2.1 million in expense related to pre-revenue operations during the quarter, as well as approximately $750 thousand in non-recurring expenses. All dollar amounts in this press release are in United States dollars.

“WE HAD A VERY SMOOTH ENTRY INTO REVENUE OPERATIONS AND THE GLOBALX TEAM HAS PERFORMED EXCEEDINGLY WELL,” SAID ED WEGEL, CHAIRMAN AND CEO OF GLOBALX. “DURING OUR FIRST SEVEN WEEKS OF OPERATIONS WE OPERATED MORE THAN 150 REVENUE FLIGHTS, AND APPROXIMATELY 400 BLOCK HOURS, FOR NEARLY A DOZEN CUSTOMERS.”

“ON AUGUST 30TH, WE RECEIVED OUR FINAL AUTHORITY FROM THE US DEPARTMENT OF TRANSPORTATION TO FLY INTERNATIONAL CHARTERS. THIS ENABLES US TO FLY TO THE CARIBBEAN, MEXICO, LATIN AMERICA, AND CANADA. WE CAPITALIZED ON THAT AUTHORITY BY IMMEDIATELY EXECUTING ON INTERNATIONAL CONTRACTS, AND WE HAVE BEEN CONTINUING TO EXPAND OUR INTERNATIONAL CLIENT BASE.”

MR. WEGEL FURTHER ADDED: “NOW THAT THE FAA CERTIFICATION IS BEHIND US, OUR FOCUS IS ON DELIVERING EXCEPTIONAL CUSTOMER VALUE, WHILE SCALING THE AIRLINE TOWARDS PROFITABILITY. WE ARE EXTREMELY ENCOURAGED ABOUT THE DEMAND FOR OUR PRODUCT OFFERING AS WELL AS OUR GROWING PORTFOLIO OF CUSTOMERS.”

Third-Quarter Results

Flights in the third quarter of 2021 totaled 378 block hours with revenue of $3.1M, both of which were zero for the same period in 2020. Operating losses during the quarter were driven by the investments necessary to achieve FAA certification and limited number of aircraft. During the quarter GlobalX operated two Airbus A320s and one Airbus A321 aircraft for 91 total combined days available for sale.

GlobalX ended the quarter with $8.9 million in cash and restricted cash.

Outlook

Looking ahead, GlobalX projects strong demand for its services and a resulting increase in revenue block hours in the fourth quarter of 2021. GlobalX will seek to continue to increase its flight activity to Cuba and the Dominican Republic, as well as flights on behalf of the US Government agencies, US-based hotel and casino operators, and for college football team clients (including NCAA football bowl game flights). GlobalX is accepting delivery of three aircraft in the coming weeks and expects to have as many as 6 aircraft operating by the end of the year. This will result in an estimated 270% increase in total combined aircraft days available for sale in the fourth quarter versus third.

Commenting on the results, Mr. Wegel stated: “We believe we are now developing a strong foundation for our airline, with a strong team of airline professionals, and we are well positioned going into 2022.”

About Global Crossing Airlines

GlobalX is a US 121 domestic flag and supplemental airline flying the Airbus A320 family aircraft. GlobalX flies as an ACMI and wet lease charter airline serving the US, Caribbean, and Latin American markets.

In other news, Canada Jetlines Operations Ltd. and Global Crossing Airlines Group Inc. have announced that Canada Jetlines (through its Canada Jetlines Vacations Ltd.) subsidiary, and GlobalX (through its GlobalX Air Tours LLC subsidiary) intend to launch their first partnership on the sale of public charter flights between Toronto and Florida.

The arrangement is the first between the two companies since GlobalX completed the spin out of Canada Jetlines in June 2021 to shareholders. Under the terms of the arrangement, Canada Jetlines Vacations will jointly market and sell seats on GlobalX public charter flights over a six-week period. Round trip charter flights are expected to operate from Toronto to Miami and Fort Lauderdale weekly beginning in March 2022.

The parties are targeting that tickets will go on sale in December 2021, pending receipt of all final regulatory approvals including approval from, and completion of Canada Jetlines Vacation registration with, the Travel Industry Council of Ontario (TICO).

Flights will be operated on GlobalX Airbus A320 aircraft.

Canada Jetlines intends to start operating flights to Florida with its own A320 aircraft once it has completed its certification and receives all required government approvals.

In other news, GlobalX also announced on November 15 it commenced operations for Havana Air:

Global Crossing Airlines Group, Inc. and ViajeHoy, LLC, d/b/a Havana Air (Havana Air) are pleased to announce that they have commenced scheduled charter service from Miami and Tampa to Havana.

The initial service, granted under approval from the U.S Department of Transportation, operates six times weekly between Miami and Havana, and twice weekly between Tampa and Havana.

Both GlobalX and Havana Air plan for the number of flights to increase as Cuba fully opens post-pandemic.

On September 30, 2021, US DOT approved the GloablX fleet size increase to 6 aircraft, subject to FAA approval as each enters service. N279GX (below) entered revenue service on October 1, 2021. N278GX entered service at the end of October bringing the fleet to 4. Two additional A320s will enter service within 60 days growing the fleet to 6.

Airbus A320 N278GX also wears updated 2021 livery:

Top Copyright Photo: Pictured in the inaugural 2021 livery: GlobalX (Global Crossing Airlines) Airbus A320-214 N276GX (msn 2695) LAS (Nick Dean). Image: 955771.

Jetlines and SmartLynx confirm $7.5 million financing still proceeding

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.

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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:

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.