Weeks after losing two key investors and suing a WestJet co-founder in an unrelated matter, Canada Jetlines has announced that it will enter into a letter of intent with U.S.-based Global Crossing Airlines (GLOBALX), with respect to a business combination of Jetlines and GLOBALX.
READ MORE: Canada Jetlines sues WestJet co-founder
According to Canada Jetlines, GLOBALX plans to operate a US 121 charter airline using the Airbus A320-200 aircraft. GLOBALX business model includes the intention to provide ACMI and wet lease contracts to airlines operating within and to the United States and develop aircraft interchange with leading European charter/tour operators.
In addition to the core business of GLOBALX, the combined company will continue with an operating plan for Canada, Jetlines said. This includes continuing to advance the Air Operator Certificate for Jetlines through the continued refinement of the Jetlines operating manuals and maintained in submission ready status. The company also plans to initially operate charter operations in concert with major tour operators from Canadian cities to major leisure destinations in the United States. It is intended that GLOBALX aircraft will be used to operate these flights, branded as Jetlines and operated by GLOBALX.
The transaction is subject to the execution of a definitive transaction documents, approval of the TSX Venture Exchange, approval of the Jetlines and GLOBALX shareholders and other conditions customary for a transaction of this nature, Jetlines said, adding that “there can be no assurance that the transaction will be completed as proposed or at all.”
After numerous launch delays, Canada Jetlines announced in October that investors SmartLynx and InHarv ULCC Growth Fund “have exercised their rights to terminate their investment commitments,” after the airline failed to secure financing of $40 million. Then, in November, the company announced that it was suing WestJet Airlines co-founder David Neeleman in the U.S., alleging interference in the ULCC’s bid to begin flying.
A launch date for the company is yet to be confirmed.
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