Canada will have to wait a little while longer to welcome its first Ultra Low Cost Carrier (ULCC) to the playing field.
In a statement, Canada Jetlines acknowledged that it has yet to secure an adequate financial backing that is required to successfully launch the airline in the Canadian market.
"The Company has made significant advancements towards launching commercial airline operations which have been detailed in prior news releases. Commercial agreements have been concluded with airports, suppliers, service providers and other key stakeholders. Jetlines has also made progress in the licensing process through the submission of operations manuals and licensing documents to Transport Canada and the Canadian Transportation Agency. However, the completion of the financing required to launch airline operations remains critical to Jetlines continued advancement and launch," a statement reads.
It continues: "With regards to financing efforts, Jetlines is currently discussing the opportunity with a number of institutions whose investments would be sufficient to launch operations. At this time, Jetlines’ partners at SmartLynx Airlines SIA and InHarv ULCC Growth Fund (“InHarv”) remain committed to seeing Jetlines through the financing process. Jetlines intent is to convert investor interest into financing commitments, but it cannot provide any assurances that this will occur."
This isn't the first time a planned launch has fallen through; Canada Jetlines last announced that it was eyeing a launch date of December 2019, with Vancouver International Airport (YVR) being the homeport.
The proposed newest member of Canada's LCC family first made the news backin 2014, when Canada Jetlines signed a purchase deal with Boeing for up to 21 B737 Max aircraft, in keeping with the company’s plans to launch as a low-cost carrier the following year.
Don't miss a single travel story: subscribe to PAX today!