VANCOUVER, British Columbia, Sept. 03, 2019 (GLOBE NEWSWIRE) -- Canada Jetlines Ltd. (JET: TSX-V; JETMF: OTCQB) (the “Company” or “Jetlines”) announces that SmartLynx Airlines SIA (“SmartLynx”) remains committed to Jetlines and has agreed to extend the funding milestone under the definitive subscription agreement. The new deadline is September 30, 2019, such completion date subject to further extension or waiver by SmartLynx based on its assessment of corporate progress (see update below on commercial and operational progress).
As specified in the Company’s press release of July 8, SmartLynx will provide $7.5 million in financing under the terms of a convertible debenture. The amended offering terms were set to match the financing terms agreed to with InHarv ULCC Growth Fund (“InHarv”). Please refer to the Company’s press releases dated July 8, 2019 and July 30, 2019 for further information on the SmartLynx financing.
Mark Morabito, Executive Chairman, commented “I am pleased that SmartLynx has elected to push out our funding milestone and would like to thank both SmartLynx and InHarv for their continued support as true partners of Jetlines. It is important to remember that SmartLynx specializes in full-service ACMI (Aircraft-Crew-Maintenance-Insurance) aircraft lease services and is the leading ACMI provider in Europe for Airbus A320 aircraft. SmartLynx aircraft have been utilized by major airlines including Norwegian, EasyJet, Thomas Cook and TUI and its partnership with Jetlines extends not only through SmartLynx’ s investment, but also through SmartLynx’ s ability to contribute its years of experience in airline operations, aircraft leases, maintenance operations and other matters to help Jetlines succeed”.
The Company is pleased to provide an update on significant recent commercial and operational developments.
Commercial
Jetlines has completed the build of its new website and it is ready to sell tickets. Following successful integration by Jetlines ancillary services partners, Booking.com and CarTrawler, the new website enables customers to rent cars and book hotels at very competitive prices, and the Company to maximize ancillary revenues.
In recent months, Jetlines has secured remarkable brand awareness thanks to our new tagline Flying Sucks Less When You Pay Less, and to our Protest in the Sky video-release, which has been viewed by thousands of Canadians. In partnership with award-winning marketing agency Cossette, Jetlines has developed and plans to deploy a launch campaign as soon as the Company receives permission to sell tickets.
Operations
Jetlines continues to advance its Air Operator Certificate (AOC) application with Transport Canada, having now submitted all but one of the required operations manuals. Once operational, the Company is confident that the processes it has defined will enable the airline to exceed the highest safety standards.
The Company has completed the incorporation of most of the required software systems, utilizing the latest in technological automation and cloud platform solutions. In preparation for launch, Jetlines continues to build-out its expert operational team, which now incudes a COO, VP Flight Operations, VP Maintenance, Head of Training, Chief Pilot, Flight Attendant Manager and Safety Manager.
Jetlines believes that due to proposed consolidations resulting from a surge in M&A activity in the Canadian airline industry, the ULCC market opportunity has never been greater. The Company is looking forward to the Competition Bureau announcing its position on its ongoing investigation into WestJet’s alleged predatory pricing through its subsidiary, Swoop.
The Company continues to make progress on building out the airline and is now closer than ever to starting operations. The Company and SmartLynx are currently reworking the aircraft lease arrangements. However, the final date for airline launch is subject to meeting the financial requirements of Canadian regulatory authorities. The Company will provide further timing updates once the necessary funding commitments have been secured. Please refer to the Company’s management's discussion and analysis for the six-months ended June 30, 2019 for further information on the SmartLynx aircraft lease agreements.
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. The Company plans to commence operations with the Airbus A320 fleet, the most widely used aircraft for ultra-low cost carriers worldwide. 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.
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.
For more information on Jetlines, please visit our website at www.jetlines.com.
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:
Toll Free: 1-833-226-5387
Email: investor.relations@jetlines.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 (i) the commencement of operations and the success of expected future operations of the Company; (ii) the routes that Jetlines intends to service; (iii) the future benefits of the SmartLynx and InHarv agreements disclosed in this press release; and (iv) Jetlines ability to offer the lowest airfares in Canada.
In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or " or variations of such words and phrases or statements 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 receipt of financing to commence airline operations, the accuracy, reliability and success of the Jetlines’ business model; the timely receipt of governmental approvals; the timely commencement of operations by Jetlines and the success of such operations; 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; 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, the ability to obtain financing at acceptable terms, the impact of general economic conditions, domestic and international airline industry conditions, future relations with shareholders, volatility of fuel prices, increases in operating costs, terrorism, pandemics, natural disasters, 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; and the additional risks identified in the "Risk Factors" section of the Company's reports and filings with applicable Canadian securities regulators. There is no assurance that the closing of the Offering will occur. 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.