“We’re able to get airplanes at one heck of a price. Where it looks like things are down, that’s the best time to get in.”
May 26, 2021
Global Crossing Airlines has announced details of its intention to spin-out Canada Jetlines to its shareholders. If you are a GlobalX shareholder on the record date of June 24th this year, you will receive one share in Canada Jetlines for every two shares you own in GlobalX. This is a rare opportunity to have stock in two separate airlines by owning GlobalX before the record date.
Investors may remember that the past version of Canada Jetlines was looking to raise more than $50 million to become Canada’s first scheduled ULCC (Ultra-Low Cost Carrier) but after exhaustive efforts it was never able to get off the ground.
Fast forward to today, Canada Jetlines as a charter airline is looking to capitalize on the opportunity to get aircraft at a significant discount due to the COVID pandemic. Jetlines is poised to become a sun destination airline for Canadians to take advantage of with an expected travel surge when restrictions are finally lifted.
Serial Canadian entrepreneur Ravinder Minhas recently joined the Canada Jetlines board of directors and was interviewed by CBC stating “People go, “Whoa. What are you doing? Are you nuts?” Yet Mr. Minhas believes that there has never been a better time to launch an airline in Canada. “We’re able to get airplanes at one heck of a price. Where it looks like things are down, that’s the best time to get in.”
In June 2020, GlobalX airlines took over the shell of the past Canada Jetlines (TSX-V: JET) and started trading on the TSX-V after closing a $1.5 million $0.25 USD unit financing. Shares briefly ran to $3.30 and as of this writing now sit at just over $2.00 as the airline finishes its FAA certification. GlobalX is a US based airline that will operate charter and cargo flights and will operate independent of Canada Jetlines which will be looking to finance its start-up likely commencing in June.
The CBC video can be viewed by clicking here.
The CBC News article can be read here.