Global Crossing Airlines, trading as GlobalX (G6, Miami International), has applied to the US Department of Transportation (DOT) for certificates of public convenience and necessity covering interstate and foreign charter flights amid plans to offer charter/ACMI services later this year using a single A320-200.
Global said in its submission that it plans to lease its first aircraft and proffer it on the charter market, with ACMI deals accounting for "most" of its revenues. The start-up plans to operate in both domestic and foreign markets but did not offer any further details. As its business matures, it "expects to add A320 aircraft through capital raises and revenue growth".
Global is in the process of merging with stalled Canadian ULCC start-up, Canada Jetlines (AU, Toronto Pearson), which has now decided to abandon its original plan of launching in Canada. The merger has yet to be approved by Jetlines' shareholders and the final go-ahead is expected by May this year. Global Crossing Airlines said that with the completion of the merger, its current shareholders will have just over 40% of the new company. A further 25% stake will be held by existing Jetlines' shareholders, and the remainder will be distributed through new share issuances.
Global Crossing Airlines hopes to raise USD1.5 million in its initial share offering plus another USD3 million through the issue of warrants. The start-up said it is "limiting the value of the first offering in recognition of the current investor climate. But it believes market conditions will improve, and its ability to raise subsequent funds will be greatly enhanced, as early as the third quarter of 2020".
