Category Archives: Jetlines

‘A rebellion against high fares’: New low cost airline launching in Hamilton

Canada Jetlines to be based out of Hamilton and Waterloo

 

A new ultra-low cost airline that claims it will have the lowest base fares in Canada is launching out of the Hamilton and Waterloo airports in June of 2018.   Stan Gadek, CEO of  Canada Jetlines, made an announcement about the new carrier’s plans in Toronto on Monday.   “As Canadians, why are you paying so much for airfare?    I don’t understand it.    You don’t have to,” Gadek said.
“The industry has evolved to the extent now where carriers have lower cost structures, lower price of fuel, lower input costs – and yet air fares are extremely high here in Canada.    There’s no rational basis for that.”
“We’re going to start a rebellion against high fares in Canada.”

The move comes as Hamilton’s airport more than doubled its passenger numbers in the first six months of this year, compared to the first half of 2016.    The airport currently hosts flights operated by five passenger carriers:   Flair (formerly NewLeaf), Air Canada, WestJet, Air Transat and Sunwing Airlines.
Passenger numbers at Hamilton’s airport have long fallen short of expectations, dropping more than 100,000 since 2009.    But the new discount airlines, and the bigger carriers trying to compete with them, appear to be turning that trend around.   About 10 per cent of them are coming from Buffalo and upstate New York, according to a report from the airport.
Gadek said that Canada Jetlines will launch on June 1 in 2018, with two 189-seat aircraft, configured for all coach seating.   The airline will start with flights from Hamilton and Waterloo to Vancouver, Edmonton, Calgary, Winnipeg, and Halifax.   There will be a “soft start” for 60 days, Gadek said, so the company can demonstrate to Transport Canada that they can operate in accordance with procedure.    Then, he said, expansion will ramp up.
After 60 days from launch, Canada Jetlines says it will add two more planes, and expand to 14 locations, including St. John’s Las Vegas and Orlando.

Canada Jetlines

These are the destinations that Canada Jetlines says it will serve by April of 2019. (Canada Jetlines)

Six months in, the company plans to add two more planes for a total of six, and fly to 23 markets, including Tampa, Fla. And Cancun.   “This will be a fairly rapid expansion,” Gadek said.   The company also claims it will have the lowest costs of any airline in Canada or the U.S.  “How low will those fares go?   Well, I like to say it will be about the same cost as a pair of jeans, quite honestly,” Gadek said.   He did not give specific indications of prices, but said base fares will usually be under $100.  Exact prices will depend on the market and the time of the year, he said.
The company will be competing with other low cost carriers like NewLeaf and Flair Airlines.   Both Flair and NewLeaf have been linked since NewLeaf launched last summer, offering flights for as little as $59 one way between Canadian cities such as Abbotsford, Halifax, Edmonton, Hamilton and Winnipeg.
NewLeaf launched with a rocky start, with the Consumers’ Association of Canada issuing an alert concerning NewLeaf and Flair over what it called “arbitrary cancellations and alterations to flight dates and times.”

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Canada’s Jetlines signs deal to lease two 737-800s

 

Hopeful Canadian upstart Jetlines has signed a letter of intent with an unnamed US lessor to acquire two Boeing 737-800s – aircraft that would supplement the carrier’s plans to purchase at least five new 737 Max.   The Vancouver-based company in a 7 September media release also says it now expects to begin flights in summer 2018 and to begin ticket sales next spring.   Jetlines does not name the US leasing company, but says the letter of intent calls for the 737s to be delivered in April 2018.   The aircraft will be fitted with 737-800’s maximum capacity of 189 seats in an all-coach class configuration, Jetlines adds.
The company does not provide other details.
Jetlines had initially planned to begin flights using 737 Classics, according to securities documents filed by former partner company Inovent Capital.   The company also in December 2014 placed firm orders with Boeing to purchase five 737 Max 7s, with deliveries scheduled for 2023, according to Jetlines‘ most-recent securities filings.   That deal also includes options for 16 737 Max and conversion rights to the 737 Max 8.   Several years ago, Jetlines, then a private company, had hoped to become publicly traded through a merger with publicly-traded Inovent.
That partnership crumbled and Jetlines instead partnered with another publicly-traded company called Jet Metal.
Jet Metal and Jetlines merged their operations in February through a deal that made Jetlines a public company and raised C$6.8 million ($5.6 million) in the process.   Jetlines‘ plans received a boost in November 2016 when Canada’s government granted Jetlines and another prospective start up called Enerjet an exemption from Canada’s 25% cap on foreign ownership of airlines.  The exemption raised the cap to 49%, a move Jetlines and Enerjet praised as providing access to additional capital.