Tag Archives: Jetlines

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

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 30^TH, 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.

GlobalX plans to take off this summer

Global Crossing Airlines (GlobalX) (Miami) is finalizing its FAA certification using the Airbus A320 family of aircraft. Subject to final FAA and DOT final approvals, GlobalX will fly as an ACMI, wet lease, and ad-hoc charter airline serving the US, Canadian, Caribbean and Latin American markets.

The new airline hopes to take off this summer once it receives its AOC.

The upstart currently has two aircraft:

In other news, ST Engineering will lease up to five Airbus A321 Passenger-to-Freighter (P2F) aircraft to Global Crossing Airlines (GlobalX).

The first A321 aircraft to be converted will be in April 2022 and will be placed on lease in the fourth quarter of 2022. The remaining four P2F aircraft will be converted and leased to GlobalX progressively.

In other news, the company previously provided an update on its Jetlines transaction:

Pending all regulatory approvals of the transaction, each shareholder of GlobalX will receive one share of Jetlines for every two shares of GlobalX on the Record Date. This transaction allows GlobalX to maximize the value of the Jetlines assets acquired in the reverse take-over, and to continue to drive value for our GlobalX and legacy Jetlines investors.

GlobalX effectively took control of the assets of upstart Jetlines.

Jetlines sues David Neeleman and affiliates for “tortious interference”

Jetlines has made this announcement:

Canada Jetlines Ltd. (Jetlines) has announced that the Company has commenced legal proceedings in the United States District Court (District of Connecticut) against David Neeleman, DGN Corporation and Breeze Aviation Group, Inc. for tortious interference with business expectancy and violation of the Connecticut Unfair Trade Practices Act. The case is No. 3:19-cv-01850.

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.

Video:

Jetlines introduces a new brand, livery and tagline prior to launch

Jetlines has made this announcement:

Canada Jetlines Ltd. (Jetlines) is pleased to announce a new and playfully provocative brand identity to serve and stand up for Canadians nationwide. The rebranding comes in preparation for commercial launch targeted for December 17, 2019.

Canadians pay among the highest airfares in the world. The recently announced intent to acquire Air Transat by Air Canada, as well as the sale of WestJet to Onex will only reduce competition and increase prices further. Consumers are rightfully frustrated and fed up.

The timing couldn’t be better for Jetlines. With the intent of being in the air by mid-December, the Company has developed a cheeky, rebellious identity system, as well as a brand promise anchored in the unapologetic and honest truth: “Flying sucks less when you pay less”

Jetlines is firmly principled to offer the lowest airfares in Canada. Because Canadians should have the right to affordable travel. Because everyone deserves an airline that flies for them. Because any other way is a complete rip-off. Of course, flying will still suck. There’s not much anyone can do about manspreading seatmates or tiny toilet stalls. But it will suck less when you pay less.

Working with Cossette, the new identity system is authentic, accessible and deliberately distinct from the expensive goliath incumbents in Canada. The logo incorporates a face with a knowing smirk created from an upside-down plane. It includes an additional suite of expressive faces to capture every emotion of travel. The new system will cover every touchpoint of the brand experience from the livery to uniforms to signature luggage and humourous airsickness bags.

“Jetlines is fighting for Canadians by creating competition and rebelling against Canadian ultra high airfares. Our new brand promise and design reflect our core philosophy of pushing back against the status quo and giving Canadian travellers a brand that empowers them to make their own decisions,” noted Javier Suarez, CEO of Canada Jetlines. “I would like to thank the entire Jetlines commercial team for building such a strong brand identity that reflects our passion and values, as well as extend my most sincere gratitude to our partner, Cossette, for all of their hard work and raw talent that has brought us here today.”

Images: Jetlines.

Video:

Jetlines is granted slots at Vancouver International Airport

Jetlines made this announcement:

Canada Jetlines Ltd. (Jetlines) is pleased to announce that it has been granted slots at Vancouver International Airport (YVR) to operate its first Winter Schedule. This announcement follows Jetlines’ February 7, 2019 news release announcing YVR as its home airport and primary base of operations when the Company intends to launch operations in December this year.

The slots will permit Jetlines to operate up to ten flights per day and over 1,000 flights during the first winter season from December 17, 2019 to March 28, 2020 as the Company plans to grow commercial operations and offer service in time for the upcoming winter holiday season. The initial two Airbus A320 aircraft that Jetlines has secured through its partnership with SmartLynx will be parked at YVR airport nightly.

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.

Jetlines ability to sell tickets and launch airline service remains subject to the completion of the airline licensing process, the receipt of applicable regulatory approvals and the completion of financing.

Jetlines announces a definitive lease agreement with SmartLynx for two Airbus A320s for December launch

Jetlines has announced that it has entered into definitive lease agreement with its partner, SmartLynx Airlines SIA, for two Airbus A320s that will be available for delivery in fourth quarter 2019 in line with the expected commencement of Jetlines’ operations.

Jetlines has set a launch of commercial service targeted for December 17, 2019 using Vancouver (YVR) as Jetlines’ home airport.

Jetlines’ operations department intends to conduct a familiarization inspection of the aircraft in the next few months to ensure the aircraft are in compliance with the Transport Canada A320 Type Certificate, and identify any additional equipment required.

The aircraft are scheduled to be delivered by November 5, 2019 and as part of the AOC (Air Operator Certificate) process, they will be inspected by Transport Canada prior to launching operations.

CEO, Javier Suarez commented, “I am thrilled with the favourable lease rates offered by our partner Smartlynx. I’m also very pleased to share that the aircraft will be delivered in flight-ready condition with no reconfiguration needed; keeping our turnaround time and costs down. The aircraft will be Jetlines branded with the previously defined ultra-low cost 180 seats with an all economy configuration. We are working hard to have these two aircraft flying right before the busy holiday season in December 2019.”

Executive Chairman, Mark Morabito commented, “I want to again express my appreciation to our partners at SmartLynx for working with Jetlines to conclude these definitive lease agreements on favorable terms. Jetlines continues to work on concluding the final component of its financing plan so that it can begin airline operations in time for the holiday season.”

The two Airbus A320’s have virtually identical conformity in design, features, and equipment, allowing Jetlines to expedite the necessary training and maintenance processes. The two aircraft will be configured with 180 ultra-light ACRO seats, helping the airline save fuel while increasing its payload.

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.

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: