The newest kid on the block (though not totally on the scene yet) in Canadian aviation is budget carrier Canada Jetlines. We last heard about them in July with their current launch date set as December 17th of this year. With just under two months left – what’s happening with this airline?
The latest news
In May, we reported that Canada Jetlines had leased two A320s from SmartLynx Airlines SIA. Then in July, the airline issued a very brief operational update that discussed the hiring of a recruiting agency for its staff and the selection of a cloud-based IT platform.
Most recently, however, we saw an operational update from the airline at the beginning of this month. In it, Canada Jetlines announced a seven-year agreement with American aeronautics company Jeppesen. Jeppeson offers “navigational information, operational planning tools, flight planning products and software”.
The October update also touched on its “talent-based hiring assessments for Pilots, Flight Attendants and other Leadership Positions” which commenced at the beginning of September. This is done in conjunction with a company by the name of Gallup – an analytics and advisory firm.
Lastly, the company made an announcement regarding the settlement of debts to its creditors. This has been done by issuing over 700,000 “common and variable voting shares” of the company – traded on the Toronto Stock Exchange’s venture subsidiary, the TSX Venture Exchange. At the time of writing, the company is trading at C$0.21 per share.
Still no tickets for purchase
Included as a footnote to their July AND October updates, Canada Jetlines reminds readers that tickets are not yet for sale:
“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.”
It should go without saying that an airline doesn’t really operate without passengers buying tickets. Therefore, reading that the ability to sell tickets is still awaiting regulatory approval is of slight concern.
About the parent company
Canada Jetlines is actually owned by investment firm King & Bay. The company identifies itself as…
“…an incubator for businesses since 2003, growing to invest in promising business ventures in the natural resource, airline and tech sectors. With an eye to the latest trends and leveraging the vision of our founder, we have become the experts in panning through the rubble of risk to extract the gold of opportunity.”
Looking at the company’s website, it appears to have a very small portfolio of mining companies as well as one lithium energy venture and two IT companies. Does this company have the expertise and capital to really get this airline going? I guess we will find out soon…
We wish we had more to tell you, but that’s it for now. We reached out to the airline for another update but haven’t heard back yet. Hopefully, things are progressing smoothly and the December launch date remains. Once up and running the airline will be going head to head with other budget carriers like Swoop and Flair.
Given the challenges of starting an airline, how optimistic are you that Canada Jetlines can take-off? Would you purchase shares in the company? Let us know by leaving a comment!