VANCOUVER, British Columbia, May 16, 2019 (GLOBE NEWSWIRE) -- Canada Jetlines Ltd. (JET: TSX-V; JETMF: OTCQB) (the "Company" or "Jetlines") is pleased to announce that it has entered into definitive lease agreement with its partner, SmartLynx Airlines SIA, for two Airbus A320 that will be available for delivery in Q4 2019 in line with the expected commencement of Jetlines' operations. Jetlines has set a launch of commercial service targeted for December 17, 2019 using Vancouver (YVR) as Jetlines' home airport.
Jetlines' operations department intends to conduct a familiarization inspection of the aircraft in the next few months to ensure the aircraft are in compliance with the Transport Canada A320 Type Certificate, and identify any additional equipment required.
The aircraft are scheduled to be delivered by November 5, 2019 and as part of the AOC (Air Operator Certificate) process, they will be inspected by Transport Canada prior to launching operations.
CEO, Javier Suarez commented, "I am thrilled with the favourable lease rates offered by our partner Smartlynx. I'm also very pleased to share that the aircraft will be delivered in flight-ready condition with no reconfiguration needed; keeping our turnaround time and costs down. The aircraft will be Jetlines branded with the previously defined ultra-low cost 180 seats with an all economy configuration. We are working hard to have these two aircraft flying right before the busy holiday season in December 2019."
Executive Chairman, Mark Morabito commented, "I want to again express my appreciation to our partners at SmartLynx for working with Jetlines to conclude these definitive lease agreements on favorable terms. Jetlines continues to work on concluding the final component of its financing plan so that it can begin airline operations in time for the holiday season."
The two Airbus A320's have virtually identical conformity in design, features, and equipment, allowing Jetlines to expedite the necessary training and maintenance processes. The two aircraft will be configured with 180 ultra-light ACRO seats, helping the airline save fuel while increasing its payload.
About Canada Jetlines Ltd.
Canada Jetlines is set to become Canada's first true Ultra-Low Cost Carrier (ULCC) airline, with plans to operate flights across Canada and provide non-stop service from Canada to the United States, Mexico and the Caribbean. The Company plans to commence operations with the Airbus A320 fleet, the most widely used aircraft for ultra-low cost carriers worldwide. Jetlines is led by a board and management team with extensive experience and expertise in low-cost airlines, start-ups and capital markets. The Company was granted an unprecedented exemption from the Government of Canada that will permit it to conduct domestic air services while having up to 49% foreign voting interests.
For more information on Jetlines, please visit our website at www.jetlines.ca.
ON BEHALF OF THE BOARD
"Mark J. Morabito"
Canada Jetlines is part of the King & Bay group of companies. King & Bay is a merchant bank that specializes in identifying, funding, developing and supporting growth opportunities in the resource, aviation, and technology sectors.
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Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" concerning anticipated developments and events that may occur in the future. Forward-looking information contained in this news release includes, but is not limited to, statements with respect to (i) the commencement of operations and the success of expected future operations of the Company; (ii) the completion of additional financing; (iii) the projected start of airline operations; or (iv) the airports and routes that Jetlines intends to service.
In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the satisfaction of the conditions to closing of the Offering, the satisfaction of the escrow release conditions, the terms contained in the executed agreements to be entered into by the Company or its subsidiaries with the SPV, the receipt of financing to commence airline operations, the accuracy, reliability and success of the Jetlines' business model; the timely receipt of governmental approvals; the timely commencement of operations by Jetlines and the success of such operations; the legislative and regulatory environments of the jurisdictions where the Jetlines will carry on business or have operations; the impact of competition and the competitive response to the Jetlines' business strategy; and the availability of aircraft. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks related to, the ability to obtain financing at acceptable terms, the impact of general economic conditions, domestic and international airline industry conditions, future relations with the SPV, volatility of fuel prices, increases in operating costs, terrorism, pandemics, natural disasters, currency fluctuations, interest rates, risks specific to the airline industry, the ability of management to implement Jetlines' operational strategy, the ability to attract qualified management and staff, labour disputes, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits; risks related to disputes under the agreement with Boeing to acquire 737-Max aircraft, and the additional risks identified in the "Risk Factors" section of the Company's reports and filings with applicable Canadian securities regulators. There is no assurance that the closing of the Offering will occur. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.
Source: Canada Jetlines Ltd.