Canada Jetlines (AU, Toronto Pearson) has postponed its operational launch, earlier scheduled for June 2018, as it is struggling to secure aircraft on time, the Canadian ultra-low-cost carrier has announced in a regulatory filing.
"The current market for leased aircraft has tightened considerably during 2017 and early 2018. The principal reasons are the well-documented engine manufacturing issues for the Airbus neo-powered aircraft, the increased demand for the Boeing freighter conversion program for B737-800s and worldwide traffic demand exceeding projections. All of these factors have led to increased demand and decreased supply of used aircraft available for lease," Jetlines has said.
While the carrier had previously signed a Letter of Intent with a lessor, no firm delivery date has been agreed on. Jetlines has said it is currently in talks with several major lessors regarding both the start-up aircraft and future fleet plans.
According to the ch-aviation fleets module, Jetlines currently has a firm order for five B737-7s with Boeing. Deliveries of the type are not expected to commence before the first quarter of 2019.
Jetlines plans to issue an update regarding its launch date in the second quarter of 2018.
"In the interim Jetlines continues to advance its efforts with personnel recruitment, airport agreements, the licensing process and the financing plan," the Canadian carrier has added.
Jetlines has already signed contracts with airports at Halifax, set to become its eastern operational hub, Abbotsford, which will become the western hub, and Hamilton, ON. It plans to announce further destinations during the course of the second quarter of 2018.
