Canada Jetlines (AU, Toronto Pearson) has applied to the Canadian government for exemption from the country's ownership laws in which foreign voting rights in local carriers are limited to 25%.

The start-up said in a statement that it had petitioned Canadian Minister of Transport, Marc Garneau, to allow it to offer foreign investors up to 49% of its total voting rights. This, it said, would allow it to lure in international investors that specialize in investing in and supporting Ultra Low Cost Carriers (ULCC) such as itself.

In 2009, the Canadian parliament passed legislative changes to the Canadian Transportation Act providing the framework for an increase to 49%. They were, however, never formally implemented.

Jetlines is in the process of executing a reverse takeover of Jet Metal Corp., a company already listed on the TSX Venture Exchange. Once completed, it plans to undertake an IPO in the hopes of raising additional capital needed to cover initial start-up costs including fleet procurement.

Last month, it announced it would require CAD27 million (USD20.9 million) to satisfy Stage I (Financial Fitness) of its airline licensing process with the Canadian Transportation Agency (CTA).

Once operational, Jetlines plans to offer scheduled budget flights throughout Canada and into the United States.