Jetlines postpones launch indefinitely

Avatar for Skies MagazineBy Skies Magazine | October 29, 2019

Estimated reading time 1 minute, 53 seconds.

Canada Jetlines will not be taking to the air on Dec. 17 as planned.

Canada Jetlines has recently reached an agreement with SmartLynk airlines to lease two Airbus A320s. Canada Jetlines Photo
Canada Jetlines has postponed its launch indefinitely and will not be taking delivery of its first two Airbus A320 aircraft. Canada Jetlines Image

Instead, the Vancouver-based ultra-low-cost carrier (ULCC) is reportedly laying off most of its staff and will not be paying additional deposits to receive its first two Airbus A320 aircraft.

The delay comes after Jetlines failed to secure $40 million in additional required financing, prompting both SmartLynx and InHarv ULCC Growth Fund to terminate their investment commitments.

No further launch date will be announced until the required funding is arranged.

Meanwhile, executive chairman Mark Morabito plans to continue meeting with investors in an attempt to secure financing. Jetlines’ contracts have been put on hold and documentation submitted to Transport Canada will continue to be updated as needed, said the airline.

Jetlines’ management has repeatedly aired concerns about the lack of competition in Canada’s airline industry to the national Competition Bureau, reportedly making several presentations between January and July 2019.

The start-up alleges that WestJet’s ULCC arm, Swoop, is purposely pricing its airfares lower than other airlines and trying to prevent Jetlines from entering the market.

In July, Jetlines staged a “protest in the sky,” in which skydivers protested the Competition Bureau’s perceived lack of action to protect competition in Canada’s airline industry. The skydivers displayed signs encouraging people to sign a petition on the Jetlines website.

 

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2 Comments

  1. CANADA’s Competition Bureau is a joke …just like the CRTC !!!

    SAD what other Airlines (WESTJET) will do to kill the competition !!!

  2. IT LOOKS LIKE THIS AIRLINE IS JUST A PIPE DREAM.
    IF THE COMPANY AND THEIR PLAN WERE WORTH A DIME
    THERE WOULD BE NO LACK OF INVESTORS AND MONEY.
    JET LINES IS JUST A COULDA AIRLINE. THE COMPETITION IS
    NOT GOING TO JUST STEP ASIDE AND LET THEIR MARKET
    CRUMBLE. YOU HAVE TO BE CREATIVE AND ONE UP THEM
    ON WHY YOU SHOULD EARN THE BUSINESS. CRYING AND POINTING YOUR THUMB DOES NOTHING. WE WILL HAVE TO
    WAIT TO SEE WHO IS NEXT WITH AN AIRLINE IDEA. AS FOR
    JETLINES THANKS FOR COMING OUT !!!!

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