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.