Canada Jetlines Ltd. set a launch date for its commercial airline service, targeting December 17, 2019, from its home base of Vancouver International Airport (YVR). Planning to leverage an Ultra Low Cost Carrier model, Canada Jetlines explains its target launch date is the result of new financing partnerships, particularly based on a transaction with SmartLynx Airlines SIA for up to $15 million.
The new airline also recently announced a financing transaction with a Korean special purpose fund, led and established by InHarv Partners Ltd., for up to $14 million.
As a result of its agreement with SmartLynx Airlines SIA, Jetlines explains it has mutually agreed with AerCap to terminate the leases for two Airbus A320 aircraft. Jetlines instead has entered into a letter of intent with SmartLynx Airlines for the lease of two alternate Airbus A320 that will be available for delivery in the fourth quarter of 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.
“I am pleased with the Jetlines strategy of launching for the winter peak, in time for the holidays,” said Mark Morabito, executive chairman, Canadian Jetlines. “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.”
