Miami-headquartered Global Crossing Airlines, doing business as GlobalX (G6, Miami International), intends to spin out its wholly-owned subsidiary Canada Jetlines Operations, formerly known as Canada Jetlines (AU, Toronto Pearson), into an existing shell company, renaming it Canada Jetlines Vacations (CJV).
Under the corporate realignment, GLOBALX said in a statement on September 8 that it intends to provide CJV with aircraft and crews to operate vacation charter flights from Canada to Florida, Atlantic City, and the Caribbean.
GLOBALX will retain a controlling interest in the new corporation and is evaluating the possibility of distributing its residual ownership interest in the entity to its shareholders on a pro-rata basis.
As previously reported, Global Crossing Airlines announced it had closed the merger between the US and Canadian companies on June 23, which followed the signing of a Letter of Intent (LOI) with Jetlines in December 2019 and a definitive agreement in March.
GLOBALX is currently a new-entrant airline in its FAA certification phase intending to use A320 Family aircraft as an ACMI and wet-lease charter airline serving the US, Caribbean, and Latin American markets.
"We believe that creating a stand-alone public company committed to serving the Canadian market represents a unique opportunity and will ultimately bring to fruition the long-term vision of our original Canada Jetlines shareholders to provide choice to Canadians when it comes to vacation and air travel," explained Ed Wegel, chairman and chief executive of GLOBALX.
He added that GLOBALX had "identified funding sources to complete the proposed transaction, subject to completion of a public listing of Canada Jetlines Vacations and other customary conditions."
