Ultra-low fare start-up, Canada Jetlines, has reported that it will not attain its June 2018 start-up date as previously projected due to factors impacting availability of aircraft to lease.
The airline released an update on corporate developments in relation to financing, the regulatory process, aircraft acquisition, personnel additions and launch timeline.
Key items remaining to commence flight operations are the completion of the licensing process, aircraft acquisition and completion of the financing process.
The company reports that the current market for leased aircraft has “tightened considerably” during 2017 and early 2018. Jetlines suggested principle reasons included engine manufacturing issues for Airbus neo-powered aircraft, increased demand for the Boeing freighter conversion programme for Boeing 737-800s and global traffic demand exceeding projections.
The airline said these factors have led to increased demand and decreased supply of used aircraft available for lease.
Canada Jetlines has previously secured aircraft under an LOI (Letter of Intent), however said the lessor was unable to provide a definitive delivery date.
Jetlines is in advanced negotiations with several major aircraft lessors to secure the aircraft required to support its start-up and growth plans, but will not attain its projected June start-up date.
The airline will provide new guidance to the market on its projected start-up date once Jetlines has secured definitive aircraft delivery dates, and expects to provide an update in the second quarter of 2018.
In the interim, Jetlines will continue to advance efforts with personnel recruitment, airport agreements, the licensing process and the financing plan.
