UPDATE ON JETLINES

Posted on 09/12/2016

Jetlines, Canada’s latest planning-to-be new ultra-low cost carrier filed an application earlier this year asking for changes to ownership rules surrounding airlines. Jetlines asked for an exemption to the 25 percent foreign voting interest as it apparently has a potential European investor.

The 25 percent rule is an ongoing problem for airline start-ups in Canada, as foreign investors are always concerned that they will lose any meaningful voice in decisions regarding an airline in which they have made a significant investment.
Jetlines’ application, which asks for an increase to 49 foreign voting investment, was filed in June this year and Jim Scott, president and CEO of Canada Jetlines, reportedly said that the company hoped to hear from the federal government by late August.
Scott said Jetlines planned to begin operations about six months after receiving approval from Transport Canada and securing full funding. It will apparently offer fares 40 percent lower than competitors.
The ULCC intends to launch service out two primary hubs - Vancouver and Hamilton, with a secondary base in Winnipeg. An eight-year plan would see 18 planes in southwestern Ontario at smaller airports including Waterloo and London. The company eventually hopes to be able to fly to every major Canadian and US city.
There has been no update on the filing, and no announcement from Jetlines, but we have learned that John Korenic vice president, Commercial & IT, and chief operating officer Rick Lang have both resigned from the company.