Category: Canada Jetlines

Jetlines Announces Successful Website Integration and Development in Preparation for Ticket Sales

Provided by Canada Jetlines Ltd/Globe Newswire

VANCOUVER, British Columbia, May 22, 2019 (GLOBE NEWSWIRE) — Canada Jetlines Ltd. (JET: TSX-V; JETMF: OTCQB) (the “Company” or “Jetlines”) is pleased to announce that the Company has successfully completed the integration of several systems necessary in order to start selling tickets and other ancillary purchases through the Jetlines website. The new website is expected to launch in Q3 2019, in time for Jetlines’ targeted commercial launch this December.

As part of Jetlines’ strategy to deliver a strong digital customer experience, and to drive the majority of ticket sales directly through the Jetlines’ website, the Company has successfully integrated several commercial systems in preparation for launch. This includes design and development of the core website together with the booking engine, payment processing systems, revenue management systems, and other ancillary services such as car rentals and hotel bookings.

Jetlines has successfully carried out the design, development, and integration of the new Jetlines website with the reservation system platform, Radixx (see news release dated September 18, 2018), as the booking engine for ticket sales. Through Radixx and its subsidiaries, Jetlines has developed a progressive and secure web application to deliver a website that is fast, user-friendly, and seamlessly integrated with the various tools and functionalities that will be available to Jetlines’ future customers.

In addition to the website build, Jetlines has completed necessary work with partner, Elavon (see news release dated February 26, 2019), to successfully and securely receive payments in both Canadian and US dollars and to connect with Adyen, Jetlines payment service provider of choice selected to accept e-commerce, mobile, and point-of-sale payments on the Jetlines website.

Jetlines has also completed the integration of the airRM systems (see news release dated January 15, 2019), Jetlines’ revenue management program selected to optimize ticket inventories.

Jetlines has successfully carried out the implementation of the hotel booking site connector through the Jetlines website. In addition, the Company is finalizing the car rental white label service integration.

CEO Javier Suarez commented, “While we have been working on building the foundation for our new website for several months, connecting it with our various preferred partners is what turns the website into an e-commerce platform capable of generating our forecasted revenue while delivering a unique and positive customer experience for our future guests. Our user-friendly design and clean sheet build for a website will help us maintain low payment processing costs – a savings that will soon help us achieve the goal of becoming the lowest fare airline in Canada. On top of that, we believe it will deliver an exceptional and memorable experience.”

Jetlines ability to sell tickets and launch airline service remains subject to the completion of the airline licensing process, the receipt of applicable regulatory approvals and the completion of financing.

Jetlines Announces a Definitive Lease Agreement with SmartLynx for Two Airbus A320 Aircraft in Line for December Launch

Provided by Canada Jetlines Ltd/Globe Newswire

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.

Jetlines Announces Definitive Subscription Agreement for Financing with Korean Special Purpose Fund

Provided by Canada Jetlines Ltd/Globe Newswire

VANCOUVER, British Columbia, May 15, 2019 (GLOBE NEWSWIRE) — Canada Jetlines Ltd. (JET: TSX-V; JETMF: OTCQB) (the “Company” or “Jetlines”) is pleased to announce that it has entered into a definitive subscription agreement (the “Agreement”) with InHarv Partners Ltd. (“InHarv”), on behalf of a Korean special purpose fund to be called InHarv ULCC Growth Fund (the “SPV Fund”), for a financing of $7 million (the “Principal Amount”).

InHarv is a hybrid of venture capital and private equity based in Seoul, South Korea whose strategic stance is to raise capital in South Korea for investment in cutting edge start-ups overseas. InHarv will be acting as lead & general partner for the Korean special purpose fund, and also investing as principal. The SPV Fund is to include the investment divisions of a number of leading Korean manufacturing and financial institutions as its group of limited partners. The SPV Fund will be created by InHarv to facilitate the investment into Jetlines.

Mr. Jong Chang, Founder and Chairman of InHarv, was previously Lead Partner of Booz Allen Hamilton, a global general management consultancy in the U.S., and a Senior Vice President and founding member of KBRI (now Moody’s Korea Inc.), the first credit rating agency in Seoul. Jong used to be one of the Economic Council Members for the President of South Korea, He also held positions as an independent board member of LG Chemical Co. of the LG Group based in Seoul and as an independent board member of Saint-Gabain Korea, a leading flat glass maker. Presently, Jong is the Chairman of the Board of ToolGen, Inc. a world leading DNA editing company based in Seoul Korea, and a Board Director of Verseau Therapeutics Inc. a world leading macrophage company based in Lexington, MA, USA, and of Chromis Optical Fiber Company based in Warren, NJ, USA.

Mark Morabito, Executive Chairman, commented “As we continue to advance our financing initiative, I am pleased to announce the signing of the definitive agreement with InHarv. Mr. Chang and his team are seasoned in identifying high potential start-up companies and I look forward to welcoming Mr. Chang to the Board of Directors of Jetlines after funding is complete.”

Details of the Offering

The offering (the “Offering”) will consist of 7,000 units (each, a “Unit”), with each Unit comprised of one $1,000 principal amount 10.00% senior secured convertible debenture of Jetlines (each, a “Debenture”) and 2,439.02439 variable voting share purchase warrants (each, a “Warrant”), and with each Warrant entitling the holder thereof to acquire one variable voting share of Jetlines (each, a “Warrant Share”) at a price of $0.41 per Warrant Share for a period of 36 months from the date of closing.  The Company will issue a total of 17,073,170 Warrants to the SPV Fund as part of the Units subscribed for by the SPV Fund.

The terms of the Debentures include:

  • a maturity date on such date that is 36 months from the date of issuance of the Debentures (the “Maturity Date”) and the principal amount of the Debentures, together with any accrued and unpaid interest thereon, will be payable on the Maturity Date, unless earlier converted in accordance with its terms;
  • each draw of the Principal Amount will accrue interest (“Interest”) from the drawdown date of such draw at the rate of 10% per annum, which Interest will be payable in cash annually on the anniversary date of the drawdown date of such draw, and on the conversion date or the Maturity Date, as the case may be;
  • all or a portion of the Principal Amount outstanding is convertible into variable voting shares of the Company (each, a “Share”) at the option of the holder at a conversion price of $0.41 per Share; and
  • the Debentures are subject to an origination fee of 5%, payable in Shares on each drawdown date at an issue price equal to the market price at the time of such drawdown date.

The funds will be available for drawdown based on the satisfaction of certain conditions. $4.9 million (70%) of the proceeds shall be available for drawdown by the Company once it receives from the Canada Transportation Agency an order allowing it to sell tickets for airline travel and the Company has completed additional financings for gross proceeds of $33 million. Jetlines intends to apply for this order in time to receive it in September 2019, approximately three months ahead of first flight. The remaining $2.1 million (30%) of the proceeds shall be available for drawdown upon the receipt by the Company’s subsidiary, Jetlines Operations, of its air operator certificate from Transport Canada.

The obligation of the Company to repay the Principal Amount and all unpaid Interest thereon to the SPV Fund will be secured by a security interest granted by Jetlines to the SPV Fund over all of the Company’s present and after-acquired property pursuant to a general security agreement to be entered into.

The SPV Fund is an arm’s length party to the Company and it is expected that the SPV Fund will become an insider of the Company on full conversion of the Principal Amount outstanding under the Debentures. Finders’ fees may be payable in connection with the Offering in accordance with the policies of the TSX Venture Exchange.

The Company will also grant the SPV Fund certain rights in connection with the closing of the Offering that will govern aspects of the relationship between the parties. These include the right of the SPV Fund to appoint two Board members, one of which must be a Canadian resident, and the grant of a pro-rata right to the SPV Fund to participate in future financings.

The net proceeds of the Offering will be used to further the business objectives of Jetlines in launching an ultra-low cost airline carrier in Canada, including advancing the licensing process, augmenting the leadership team with operations and commercial personnel, branding and marketing activities, as well as advance internet, digital media and IT systems initiatives.

The closing of the Offering is conditional the satisfaction of conditions to closing that will be contained in the Subscription Agreement. These conditions will include, among other things, approval of the TSX Venture Exchange for the Offering and the receipt of all other necessary consents, approvals and authorizations required by either party.

Jetlines Announces that SmartLynx has Agreed to Release Funds on Ticket Sales

Provided by Jetlines Airlines Ltd/GlobeNewswire

VANCOUVER, British Columbia, April 30, 2019 (GLOBE NEWSWIRE) — Canada Jetlines Ltd. (JET: TSX-V; JETMF: OTCQB) (the “Company” or “Jetlines”) is pleased to announce that SmartLynx Airlines SIA (“SmartLynx”) and Jetlines have amended the escrow release conditions associated with the $7.5 million subscription receipt financing that was completed in December 2018 (the “SmartLynx Offering”). The escrow release conditions have been amended to match the funding conditions that are subject to the pending financing with the Korean special purpose fund led and established by InHarv Partners Ltd. (“InHarv”) (see press release of March 28, 2019 for further details). The amended escrow release conditions will provide funds to Jetlines at an earlier date than previously agreed.

Under the amended terms with SmartLynx, the gross proceeds of the SmartLynx Offering will be released after Jetlines achieves certain milestones as described below.   $5.25 million (70%) of the proceeds shall be released upon the Company raising additional funds (the “Funding Milestone”) from a subsequent financing by June 30, 2019 (such completion date subject to waiver by SmartLynx). The Funding Milestone will be calculated by adding the amount of $3.85 million realized through the exercise of previously issued warrants since November 1, 2018  and the final amount committed under the InHarv financing at closing, and subtracting that total number from $40 million. In addition, the Company will be required to receive from the Canada Transportation Agency an order allowing it to sell tickets for airline travel. Jetlines intends to apply for this order in time to receive it in September 2019, approximately three months ahead of first flight.

The remaining $2.25 million (30%) of the proceeds shall be released upon the receipt by Jetlines Operations of its air operator certificate from Transport Canada.

Executive Chairman, Mark Morabito stated, “I would like to thank the SmartLynx group for their continued support of Jetlines. This amendment follows on their recent agreement to lease two Airbus A320 aircraft to Jetlines in order to allow for its planned December 17, 2019 start-up date. These amended escrow release terms will provide significant additional operational flexibility as funds will be available at an earlier date prior to start of operations and will allow Jetlines to better manage its capital. The terms will also be consistent with the funding conditions associated with the InHarv financing and together will provide the additional certainty of funding to the remaining investors that Jetlines is targeting to complete the remaining financing to launch airline operations.”

Jetlines Announces Anticipated Launch Timing

Provided by Canada Jetlines/Global Newswire

VANCOUVER, British Columbia, April 04, 2019 (GLOBE NEWSWIRE) — Canada Jetlines Ltd. (JET: TSX-V; JETMF: OTCQB) (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.”

Jetlines Announces Up to $14 Million Financing from a Korean Special Purpose Fund

Provided by Canadian Jetlines

March 28, 2019 – Canada Jetlines Ltd. (TSX-V: JET) (the “Company” or“Jetlines”) is pleased to announce that it has entered into a letter of intent (the “LOI”) with a Korean special purpose fund led and established by InHarv Partners Ltd. (“InHarv”) for a financing of up to $14 million (the “Offering”). InHarv is a hybrid of venture capital and private equity based in Seoul, South Korea whose strategic stance is to raise capital in South Korea for investment in cutting edge start-ups overseas. InHarv will be acting as lead & general partner for the Korean special purpose fund, and also investing as principal. The Korean special purpose fund includes the investment divisions of a number of leading Korean manufacturing and financial institutions as its group of limited partners. A special purpose vehicle (the “SPV Fund”) will be created by InHarv to facilitate the investment into Jetlines.

“This financing transaction with the Korean SPV Fund is an important pillar of Jetlines’ financing plan. Combined with the SmartLynx financing completed at the end of 2018 and $8.8m in proceeds received through the exercise of previously issued share purchase warrants, Jetlines has raised a significant portion of the funds that it needs to launch airline operations. We intend to raise the balance of the proceeds through additional debt and equity financings in the near term and negotiations are well advanced in this regard” commented Mark Morabito, Executive Chairman of Jetlines.

Javier Suarez, CEO of Jetlines added “There is significant penetration of ULCC airlines in South Korea. They understand the value proposition associated with these types of airlines and the returns Korean local investors have obtained investing in these airlines. The extensive due diligence that the Korean SVP Fund have conducted to date provides further validation of the need for a true ULCC in Canada and Jetlines’ business plan.”

Canada Jetlines Provides Update on Aircraft Maintenance and Operations

Provided by Canada Jetlines

VANCOUVER, British Columbia, March 14, 2019 (GLOBE NEWSWIRE) — Canada Jetlines Ltd. (JET: TSX-V) (JETMF: OTCQB) (the “Company” or “Jetlines”) is pleased to provide an update on recent operational developments related to Jetlines’ build out in preparation for a targeted launch later this year.

Aircraft Maintenance and Preparation for Delivery

Jetlines signed an agreement with AKKA Technologies (AKA: EPA) for the paint livery engineering drawings, stencils and placards. AKKA ranks as the European leader in engineering consulting and R&D services in mobility and carries a strong presence globally. AKKA is also accomplishing the cabin interior reconfiguration Engineering through a direct contract with the aircraft lessor.

Jetlines signed an agreement with Flightcraft Maintenance Services Ltd. (“FMS”) in Winnipeg for the aircraft reconfigurations. FMS has been engaged to install the 180 Passenger configuration with new ACRO Series 3 Superlight ST+ seats, new carpets and convert the cargo holds to bulk load configuration. With over 20 years in the business, FMS has established itself internationally as a reliable and consistent aircraft maintenance and overhaul facility. FMS is Transport Canada and EASA certified, and is internationally recognized as a leader in global Maintenance, Repair, and Operations (MRO) services.

Jetlines has reached an agreement with TRAX, the leading global provider of aviation maintenance mobile and cloud products, for their maintenance software and services. TRAX has become the best-selling aircraft fleet management software on the market today by providing a robust suite of products and services to over 170 customers worldwide. TRAX’s products provide the means to manage and maintain all information generated and allows for complete information flow with leading-edge tools for customization that will enable Jetlines to maintain an efficient process and tight cost control as a result.

Phil Larsen, VP Maintenance commented, “We are very pleased to have these highly recognized suppliers working with us for the launch of Jetlines. With AKKA Technologies doing the engineering and kit provisioning, and Flightcraft accomplishing the reconfiguration and maintenance, we can be assured a great high-quality product.”

Integrated Flight Operations Software – SysAIO

Jetlines also announces an agreement with SysAIO Inc., a Canadian company that provides a series of high-end online applications through a SaaS (software as a service) model. SysAIO will be providing Jetlines with a cutting-edge online aviation product, AvAIO (Aviation – All-In-One). AvAIO is an enterprise level aviation system that provides cost-effective operations and crewing solutions. SysAIO was selected by Jetlines for their experience in working with start-ups and their abilities to meet the challenging technical aspects of the aviation industry. Jetlines selected SysAIO due the unique flexibility it provides, allowing a smaller airline to customize the software to their individual needs as it relates to crew scheduling, reporting tools, and customization of the Safety Management System (SMS) modules, rather than conforming to legacy systems that often prescribe higher costs.

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.

Jetlines ability to launch airline service remains subject to the completion of the airline licensing process, the receipt of applicable regulatory approvals and the completion of financing.

Canada Jetlines Partners with Elavon to Provide Secure Payment Processing

Provided by Canada Jetlines/Globe Newswire

VANCOUVER, British Columbia, Feb. 26, 2019 (GLOBE NEWSWIRE) — Canada Jetlines Ltd. (JET: TSX-V) (JETMF: OTCQB) (the “Company” or “Jetlines”) is pleased to announce that it has signed an agreement with Elavon, Inc., a wholly owned subsidiary of U.S. Bancorp (NYSE: USB), as its payment processing partner of choice.

Elavon provides end-to-end payment processing solutions and services to more than 1.3 million customers in the United States, Europe, Canada, Mexico, and Puerto Rico, and is a leading payments provider to airlines around the world.

Elavon will provide Jetlines’ customers with a secure and easy-to-use payment processing platform. Its omnichannel payment solutions will allow Jetlines’ future passengers to pay however they want whether its in-person, online, on the phone, or on their mobile device. Elavon also offers top-tier security controls to protect Jetlines and its future passengers’ data and privacy. Elavon’s platform will prevent fraud through its advanced and proprietary risk management tools, fraud detection solutions, and managed chargeback services.

Jetlines Chief Financial Officer, Carlo Valente, commented, “Elavon and U.S. Bank have a track record of delivering reliable, innovative, and secure payment solutions. Elavon is consistently rated among the top global payment providers and offers secure payments solutions that comply with industry standards. With data breaches becoming more and more common today, security of customer payments is crucial while also reducing the cost of payment card industry (PCI) data compliance. Elavon meets these needs with its award-winning, international processing platform and global payment solutions.”

“We are honored Jetlines named us their payments processing partner of choice,” said Brett Turner, head of airline acquiring, Elavon. “We’ve been processing payments for the airline industry since 1989, serving global and regional carriers of all sizes. Adding Jetlines to our portfolio of airline customers deepens our commitment to the Canadian market.”

About Elavon, Inc.

Elavon, a wholly owned subsidiary of U.S. Bancorp (NYSE: USB), provides end-to-end payment processing solutions and services to more than 1.3 million customers in the United States, Europe, Canada, Mexico, and Puerto Rico. As the leading provider for airlines and a top five provider in hospitality, healthcare, retail, and public sector/education, Elavon’s innovative payment solutions are designed to solve pain points for businesses from small to enterprise-sized.

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.

Jetlines Announces Commercial Agreements with Booking.com/Google Flights/Travel Fusion and Salesforce

Provided by Canada Jetlines

VANCOUVER, British Columbia, Feb. 19, 2019 – Canada Jetlines Ltd. (JET: TSX-V) (JETMF: OTCQB) (the “Company” or “Jetlines”) is pleased to provide an update on recent commercial developments related to Jetlines’ build out in preparation for launch.

Distribution

Jetlines has reached agreements with two companies to supplement its approach to selling tickets directly through the Jetlines website.

Jetlines has signed an agreement with Travel Fusion, a leading online travel content aggregator and innovator of Direct Connect distribution solutions. Travel Fusion operates the world’s largest Direct Connect distribution and payment platform, directly linking hundreds of travel suppliers to Online Travel Agencies, online (Corporate) Booking Tools, Travel Search and Mobile services. Travel Fusion aggregates over 220 low cost carriers, full service carriers, and rail operators. Travel Fusion’s proven and scalable architecture enables fast adaptability to changes in the industry and includes full support for ancillary services.

Jetlines will enter into an agreement with Google Flights, an industry leading flight search engine. Google Flights allows you to book flights from more than 300 airline and online travel agency partners. It has the built-in capability to book one-way, round-trip, and multi-city tickets, and includes functionalities such as an interactive calendar, price graphs to find the best fares, and the capability to filter flight searches by cabin class, airlines, and number of stops.

Ancillaries

Jetlines has reached an agreement with CarTrawler, a global leader in end-to-end travel technology that will give Jetlines’ future passengers access to a suite of ground transportation solutions including car rental, bus, rail, chauffeur and taxi transfers directly from the Jetlines’ website. CarTrawler’s platform is used by over 100 different international airlines including Ryanair, Virgin Australia, AirAsia, FlyDubai and Vueling by connecting international car rental brands, buses, chauffeurs and taxi transfers from over 2,000 agents in 50,000 locations.

Jetlines is entering into an agreement with Booking.com, one of the largest e-commerce companies in the world. The Booking.com website and mobile application is available in over 40 languages, and offers over 28 million listings world-wide. Jetlines’ customers will be able to book their ideal accommodation quickly and easily through Jetlines’ website without incurring any added fees. Booking.com is also supported by a dedicated team of customer support specialists that work to continuously improve customer experience and the ease of transactions.

E-Commerce & Marketing

While Jetlines and the marketing agency of record, Cossette, continue to work on the comprehensive marketing plan for 2019, Jetlines has entered into a partnership with Salesforce to leverage their digital marketing and CRM services and expertise. Jetlines’ ability to operate through a clean-sheet design allowing it to bring technology and personalization to the forefront of the customer experience is a significant opportunity for Jetlines. Salesforce’s innovative data-driven approach will allow Jetlines to best utilize the information that its future passengers share and to optimize sales and marketing initiatives.

“We are determined to make travel easy and affordable to Canadians in a very open and honest way. We want to give our future customers the optionality of when and how they purchase their Jetlines’ tickets, and what ancillary products or services they may want to add when travelling with us,” commented Jordi Porcel, Chief Sales, Marketing, and Customer Experience Officer. “We are committed to providing a positive experience for our future passengers and that is reflected in the agreements we are reaching with key companies that are leaders in their respective industries,” Mr. Porcel added.

Canada Jetlines and Québec City Airport Sign Agreement

Provided by Canada Jetlines

February 13, 2019 Canada Jetlines Ltd. (TSX-V: JET) (the “Company” or “Jetlines”) and the Québec City Jean Lesage International Airport (YQB) (the “Québec City airport”, “YQB” or the “airport”) are pleased to announce they have reached an agreement in principle. Canada Jetlines intends to provide future ultra-low fare service from the airport.

In 2017, Québec City Jean Lesage International Airport doubled its capacity by opening a brand-new international terminal. Since its privatization in 2000, the airport has tripled its traffic going from 643,000 passengers to 1.8 million in 2018. YQB remains one of the fastest growing airports in Canada, with an annual compound passenger growth rate of 7.2% per year for the last 15 years.

Québec City has long been recognized as a premium tourist destination for Canadians, Americans, and international visitors. In 2016, Québec City had over 4 million tourists and that number continues to increase annually. Jetlines is excited about its plans to come into the market and provide a low-cost alternative to locals and tourists alike.

Javier Suarez, Jetlines CEO, stated “Québec City is an exciting addition to our future route network that will provide more Canadians with diversified and low-cost alternatives to explore this beautiful country. Jetlines plans to offer domestic as well as international flights. Québec City is also home to world-class tourism infrastructure and has been an increasingly popular destination for many travelers in recent years. This partnership will allow us to tap into the market opportunity available and stimulate demand for more travel, which Jetlines will be able to leverage to grow its business.”

“We salute Canada Jetlines’ willingness to serve the passengers of Québec City. This decision aligns perfectly with our development strategy to improve accessibility to Québec City, increase the region’s connections to the rest of the world, and support its economic growth, visibility and prestige”, said Gaëtan Gagné, President and CEO of YQB. “Bringing a low-cost option to Québec City was one of our top priority for the future and one of the reasons why we’ve expanded our terminal. I am delighted to see that this strategy is paying off and we welcome Jetlines with enthusiasm”, he concluded.

The Company’s ability to service this airport is subject to the completion of the airline licensing process and the receipt of applicable regulatory approvals.