Canada Jetlines (AU, Toronto Pearson) says it hopes to conclude its AOC certification process with the Canadian Transportation Agency (CTA) this May in time for a July launch. Outlining its revised launch plans in an investors prospectus seen by ch-aviation, the start-up says its fleet will initially consist of a pair of leased B737 Classic aircraft based out of Vancouver International. Though it will initially focus on western Canadian cities, it also plans to apply to authorities in the United States, Mexico, and several undisclosed Caribbean island nations for traffic rights.
"Within the first 36 months of operations (assuming Jetlines receives its United States, Mexico and Caribbean flight rights as anticipated) Jetlines plans to lease seven Boeing 737 Classics and one Boeing 737NG aircraft, and, subject to availability of financing, to lease or purchase a further eight Boeing 737NG aircraft for a total of sixteen aircraft," it said.
In addition to opening up longer routes to the airline, the B737 NextGens are also expected to offer a soft transition into the Boeing 737MAX aircraft for which the carrier has ordered five B737 MAX 7s while maintaining purchase rights for an additional sixteen B737 MAX jets.
In December 2014, the carrier in conjunction with parent Inovent Capital Inc. announced plans to go public on the TSX Venture Exchange. Overall, it hopes to realize at least CAD50million (USD43.16million) in funds from the offering.
The IPO is critical to the carrier's fleeting plans as Boeing (BOE, Washington National) has the unilateral right to either terminate its agreement or amend certain of its terms if Jetlines has not raised, by way of a debt or equity or otherwise, at least CAD8 million by January 15, 2015 or CAD35 million by May 31, 2015, or has failed to secure it AOC from the CTA by May 31, 2015.
