Canada Jetlines Ltd. (TSX-V: JET) (the “Company” or “Jetlines”) provides an update on recent corporate developments related to its planned launch of airline operations in 2019. Jetlines has made significant progress with respect to the airport agreements, commercial agreements and personnel additions required to launch operations. It has also announced financing transactions with SmartLynx Airlines SIA for up to $15 million and a Korean special purpose fund led and established by InHarv Partners Ltd. for up to $14 million. As a result of the Company’s progress as well as the current status of financing initiatives, Jetlines has set a launch of commercial service targeted for December 17, 2019 using Vancouver (YVR) as Jetlines’ home airport.
As a result of this determination, Jetlines and AerCap have mutually agreed to terminate the leases for two Airbus A320 aircraft, and Jetlines has entered into a letter of intent with its partner, SmartLynx Airlines SIA, for the lease of two alternate Airbus A320 that will be available for delivery in Q4 2019 in line with the expected commencement of Jetlines’ operations. The two aircraft will have the same configuration as the AerCap aircraft, with 180 ACRO seats. The letter of intent is subject to executing a definitive lease agreement and other conditions customary to a transaction of this nature.
Executive Chairman, Mark Morabito commented, “I am pleased with the Jetlines strategy of launching for the winter peak, in time for the holidays. The leased aircraft are on favorable terms as a result of our partnership with SmartLynx and this decision is expected to help Jetlines deliver better results than originally anticipated. In addition to our financing announcements with SmartLynx and InHarv, the Company continues to work with other groups in effort to secure the rest of the capital required for our start-up.”