VANCOUVER, British Columbia, March 13, 2018
(GLOBE NEWSWIRE) -- Canada Jetlines Ltd.
(TSX-V:JET) (OTCQB:JETMF) (the “Company” or
“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.
About Canada Jetlines Ltd.
Canada Jetlines is set to become Canada’s first
true ultra-low cost carrier (ULCC) airline, with plans to operate
flights across Canada and provide non-stop service from Canada to
the United States, Mexico and the Caribbean. Jetlines is led by a
board and management team with extensive experience and expertise
in low-cost airlines, start-ups and capital markets. The Company
was granted an unprecedented exemption from the Government of
Canada that will permit it to conduct domestic air services while
having up to 49% foreign voting interests.
For more information on Jetlines, please visit
our website at www.jetlines.ca.
ON BEHALF OF THE BOARD
"Mark J. Morabito"
Executive
Chairman
Canada Jetlines is part of the King & Bay group of
companies. King & Bay is a merchant bank that specializes in
identifying, funding, developing and supporting growth
opportunities in the resource, aviation, and technology
sectors.
For more information, please contact:
The Howard Group Inc.
Tel: (403) 221-0915
Toll Free: 1-888-221-0915
Jeff Walker: jeff@howardgroupinc.com
Cautionary Note Regarding Forward-Looking
Information
This news release contains "forward-looking
information" concerning anticipated developments and events that
may occur in the future. Forward looking information contained in
this news release includes, but is not limited to, statements with
respect to the airports that Jetlines intends to utilize, the
routes that Jetlines intends to fly, Jetlines business plan,
Jetlines ability to offer ultra-low fares, and future airline
operations of the Company.
In certain cases, forward-looking
information can be identified by the use of words such as "plans",
"expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved" suggesting future outcomes, or other expectations,
beliefs, plans, objectives, assumptions, intentions or statements
about future events or performance. Forward-looking information
contained in this news release is based on certain factors and
assumptions regarding, among other things, the accuracy,
reliability and applicability of the Jetlines’ business model; the
timely receipt of governmental approvals, including the receipt of
approval from regulators in Canada, the United States, Mexico and
other jurisdictions where Jetlines may operate; the timely
commencement of operations by Jetlines and the success of such
operations; the ability of Jetlines to implement its business plan
as intended; the legislative and regulatory environments of the
jurisdictions where the Jetlines will carry on business or have
operations; the impact of competition and the competitive response
to the Jetlines’ business strategy; the completion of financing for
airline operations; and the availability of aircraft. While the
Company considers these assumptions to be reasonable based on
information currently available to it, they may prove to be
incorrect.
Forward looking information involves known
and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of the Company to
be materially different from any future results, performance or
achievements expressed or implied by the forward-looking
information. Such factors include risks related to acts of God, the
impact of general economic conditions, changing domestic and
international airline industry conditions, volatility of fuel
prices, increases in operating costs, terrorism, pandemics,
currency fluctuations, interest rates, risks specific to the
airline industry, the ability of management to implement Jetlines’
operational strategy, the ability to attract qualified management
and staff, labour disputes, regulatory risks, including risks
relating to the acquisition of the necessary licenses and permits,
financing, capitalization and liquidity risks, including the risk
that the financing necessary to fund operations may not be obtained
and the additional risks identified in the "Risk Factors" section
of the Company's reports and filings with applicable Canadian
securities regulators.
Although the Company has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking information, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. Accordingly, readers should not place undue reliance on
forward-looking information. The forward-looking information is
made as of the date of this news release. Except as required by
applicable securities laws, the Company does not undertake any
obligation to publicly update or revise any forward-looking
information.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) has reviewed or accepts
responsibility for the adequacy or accuracy of this
release.
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