Ultra low-cost start-up Canada Jetlines (AU, Toronto Pearson) has announced that it has wound up its business combination with Jet Metal Corp and will begin trading as a Tier 2 industrial issuer under the symbol "JET" on March 7. The new entity will use the proceeds released from escrow of CAD6.5 million (USD4.8 million) to pursue its licensing and regulatory requirements, recruit more staff, and roll out infrastructure to support its operations.

In late 2016, Jetlines secured an exemption to allow it to be up to 49% foreign-owned, citing the heavy costs of starting up an airline. It is now seeking offshore investors for additional capital.

Under its business plan, Jetlines will offer connectivity throughout Canada and into the United States with fares it claims will be 40% cheaper than Air Canada (AC, Montréal Trudeau) and WestJet (WS, Calgary). Talking with Business in Vancouver, Jetlines executive chairman Mark Morabito says that the airline is in the process of attaining its Air Operator's Certificate (AOC), but would not be drawn on a start date.

"We're not going to promise we'll be flying by 'X' date," he said. "There's a very detailed process that's involved in getting an airline flying and we're going to follow it step by step."

Fleet-wise, the carrier with start with two leased aircraft, although it has not provided further details. It has signed a definitive purchase agreement with Boeing (BOE, Washington National) to acquire up to twenty-one B737 MAX for delivery commencing in 2021. The agreement includes five firm orders for B737 MAX 7s, purchase rights for an additional sixteen B737 MAX, and some conversion rights to the B737 MAX 8 aircraft.