Provided by Canada Jetlines Ltd/Globe Newswire
VANCOUVER, British Columbia, Sept. 03, 2019 (GLOBE NEWSWIRE) — Canada Jetlines Ltd. (JET: TSX-V; JETMF: OTCQB) (the “Company” or “Jetlines”) announces that SmartLynx Airlines SIA (“SmartLynx”) remains committed to Jetlines and has agreed to extend the funding milestone under the definitive subscription agreement. The new deadline is September 30, 2019, such completion date subject to further extension or waiver by SmartLynx based on its assessment of corporate progress (see update below on commercial and operational progress).
As specified in the Company’s press release of July 8, SmartLynx will provide $7.5 million in financing under the terms of a convertible debenture. The amended offering terms were set to match the financing terms agreed to with InHarv ULCC Growth Fund (“InHarv”). Please refer to the Company’s press releases dated July 8, 2019 and July 30, 2019 for further information on the SmartLynx financing.
Mark Morabito, Executive Chairman, commented “I am pleased that SmartLynx has elected to push out our funding milestone and would like to thank both SmartLynx and InHarv for their continued support as true partners of Jetlines. It is important to remember that SmartLynx specializes in full-service ACMI (Aircraft-Crew-Maintenance-Insurance) aircraft lease services and is the leading ACMI provider in Europe for Airbus A320 aircraft. SmartLynx aircraft have been utilized by major airlines including Norwegian, EasyJet, Thomas Cook and TUI and its partnership with Jetlines extends not only through SmartLynx’ s investment, but also through SmartLynx’ s ability to contribute its years of experience in airline operations, aircraft leases, maintenance operations and other matters to help Jetlines succeed”.
The Company is pleased to provide an update on significant recent commercial and operational developments.
Jetlines has completed the build of its new website and it is ready to sell tickets. Following successful integration by Jetlines ancillary services partners, Booking.com and CarTrawler, the new website enables customers to rent cars and book hotels at very competitive prices, and the Company to maximize ancillary revenues.
In recent months, Jetlines has secured remarkable brand awareness thanks to our new tagline Flying Sucks Less When You Pay Less, and to our Protest in the Sky video-release, which has been viewed by thousands of Canadians. In partnership with award-winning marketing agency Cossette, Jetlines has developed and plans to deploy a launch campaign as soon as the Company receives permission to sell tickets.
Jetlines continues to advance its Air Operator Certificate (AOC) application with Transport Canada, having now submitted all but one of the required operations manuals. Once operational, the Company is confident that the processes it has defined will enable the airline to exceed the highest safety standards.
The Company has completed the incorporation of most of the required software systems, utilizing the latest in technological automation and cloud platform solutions. In preparation for launch, Jetlines continues to build-out its expert operational team, which now incudes a COO, VP Flight Operations, VP Maintenance, Head of Training, Chief Pilot, Flight Attendant Manager and Safety Manager.
Jetlines believes that due to proposed consolidations resulting from a surge in M&A activity in the Canadian airline industry, the ULCC market opportunity has never been greater. The Company is looking forward to the Competition Bureau announcing its position on its ongoing investigation into WestJet’s alleged predatory pricing through its subsidiary, Swoop.
The Company continues to make progress on building out the airline and is now closer than ever to starting operations. The Company and SmartLynx are currently reworking the aircraft lease arrangements. However, the final date for airline launch is subject to meeting the financial requirements of Canadian regulatory authorities. The Company will provide further timing updates once the necessary funding commitments have been secured. Please refer to the Company’s management’s discussion and analysis for the six-months ended June 30, 2019 for further information on the SmartLynx aircraft lease agreements.