Canada Jetlines: The Airline That Never Was Plans Vacation Arm
Anna Kroupina, Open Jaw
Canada Jetlines owner Global Crossing Airlines Inc. (Global X) is planning to "spin-out" the stalled airline to an existing shell company and rename it Canada Jetlines Vacations (CJV).
Miami-based Global X, which fully owns Canada Jetlines, is currently pursuing certification in the United States and intends to supply CJV with aircraft and crew to fly vacation charters to Florida, Atlantic City and the Caribbean. In JUL 2020, Global X signed an airport and terminal use agreement with ACY, which it said it will use as a northern charter base of operations.
According toSimpleFlying, charter flights from Canada will take place from YYZ and YUL.
"We believe Canadians seek more alternatives when it comes to airlines and vacation providers," Ed Wegel, Chairman and CEO of Global X, said in a news release.
He added that "creating a stand-alone public company committed to serving the Canadian market represents a unique opportunity and will ultimately bring to fruition the long term vision of our original Canada Jetlines shareholders to provide choice to Canadians when it comes to vacation and air travel."
In a business update at the end of AUG, Wegel said the company currently has two aircraft under contract, an Airbus A320 and A321, and that Cuba operations will launch "soon after we are certified."
In a JUN business update, Wegel said Global X's vision for Jetlines is not to be a scheduled airline.
"The original Jetlines vision was to be a scheduled airline, which requires a lot more capital and assets than what we need to start a charter airline. That allows us the ability to get started with less capital, much more quickly, and get a platform in place before doing anything else," he said.
Canada Jetlines has struggled to take off for years. Most recently, it planned to launch ultra-low fare service from YHM and YKF in summer 2018, but over the following years those plans kept changing and getting pushed back as it faced difficulties securing funds. Its final push was in JUN 2019, when it vowed to take off in DEC 2019.
The launch didn't happen. Instead, the company announced that month it had signed a letter of intent with Global X for a business combination.
In JUN 2020, shareholders of Canada Jetlines Ltd. overwhelmingly approved the sale to Global X with 95.89% in favour of the transaction. Wegel says Global X has funding sources lined up to complete the transaction, which is subject to standard closing provisions.
Anna Kroupina Journalist
Anna is OJ's newest member and she joins the team as a writer/reporter. She co-writes the daily news and covers events. Although she's new to the industry, pursuing a career path in travel/tourism has been a goal since her first family road trip to the Florida Keys sparked a desire to discover the world and this exhilarating, fast-paced industry.