Canada Jetlines

[Junior]

14 hours ago, Kip Powick said:

Perhaps he is looking for advice as to where he should redirect his resume ???

Just curious how one gets a bunch of high time Airbus pilots in Canada. Maybe a few low time Air Transat pilots on layoff but that would be about it.

[IFG]

18 hours ago, Junior said:

Just curious how one gets a bunch of high time Airbus pilots in Canada. Maybe a few low time Air Transat pilots on layoff but that would be about it.

Hi, Junior - There are probably quite a few guys back in Canada from overseas gigs (wallets full, COVID cutbacks?). I know 5-6 myself, all with extensive 'bus'sing experience, and I'm not all that 'plugged-in' anymore.

Cheers - IFG 

[Guest1]

19 hours ago, Junior said:

Just curious how one gets a bunch of high time Airbus pilots in Canada. Maybe a few low time Air Transat pilots on layoff but that would be about it.

Not sure about "a bunch" but I know of a few leaving Cathay and coming back to Canada. 

[Junior]

Thanks for the replies guys. I wish them the best. Was a bit curious about their ownership structure in light of the Flair issue.

[Junior]

I found some old info on the subject. I guess Jetlines was given an exemption, so hopefully everything is OK. Nice to have a new Airbus operator in the country(ignore the old picture).

 

"

Canada Jetlines wins exemption to foreign ownership limit

Author of the article:

Debora Van Brenk

Publishing date:

Nov 03, 2016  •  November 3, 2016  •  2 minute read

 

Article content

An ultra-low-cost airline that’s aiming to include regular London flights as part of its service has won a key concession that will allow it to get off the ground.

Canada Jetlines’ plans were hamstrung by a regulation that set foreign ownership levels at a maximum of 25 per cent.

But federal Transport Minister Marc Garneau has announced Jetlines can be exempt from that regulation out of interest for the public good, as long as controlling interest remains in Canadian hands.

“We want Canadians to feel that air travel is affordable,” said MP Kate Young (L–London West), parliamentary secretary to Garneau.

She said talks are under way to allow for a blanket provision that airlines be allowed as much as 49 per cent foreign ownership.

Canada is a large country with a small population, which makes it important for airlines to be able to seek additional capital, Young said. “It’s expected to mean more competition, more choice, and lower prices for Canadians.”

Calgary-based Enerjet also won an exemption from the existing foreign-ownership rules.

The decision clears the runway for as many as 40 different flight routes to and from secondary airports in Canada — including potentially London International Airport — and in several U.S. states, at prices about 30 per cent lower than their competitors’ lowest fare.

Jetlines would be based in Vancouver, Hamilton and Winnipeg, and in this region would fly its aircraft out of London, Kitchener and/or Hamilton.

“All the airports could have increased capacity,” said Jim Scott, president of Canada Jetlines. London does have good service, he said Thursday, but added there is plenty of room for Jetlines’ point-to-point service from secondary airports such as London’s to major hubs.

London International Airport Authority president Mike ­Seabrook said the federal move “is certainly a step in the right direction.”

Seabrook said he has been in numerous meetings and discussions with Canada Jetlines and it gives every indication London meets its market and business model. “They certainly have done a lot of market research, a lot of legwork.”

Thousands of passengers “leak” out of the area to pick up flights from Toronto, Detroit and Buffalo because of cost or convenience. Canadians take an estimated five million flights a year from U.S. airports near where they live. Those passengers are going to be Jetlines’ primary customers.

In an interview earlier this year, Scott said the move here could create 50 full-time jobs, 650 indirect jobs and $150 million in annual economic benefit.

The company hopes it can be up and flying by next summer, Scott said Thursday.

The cost of a fare would get a passenger the seat, with fees for optional services such as baggage check-in or in-flight food."

[Guest1]

17 minutes ago, Junior said:

I found some old info on the subject. I guess Jetlines was given an exemption, so hopefully everything is OK. Nice to have a new Airbus operator in the country(ignore the old picture).

As a result they moved the goal from 25% to 49%.  I suspect they will not move beyond that.

Government Announces Changes in Foreign Ownership Rules for Canadian Airlines – ‘Change in Fact’?

November 2016 Transportation Bulletin  5 minute read

The Canadian federal government’s Minister of Transport, Marc Garneau, announced on November 3, 2016 that the government of Canada plans to raise the cap on foreign ownership of Canadian airlines from 25% to 49%.  The government appears to be responding to calls from industry and the recommendations in a report from the former Minister of Transport, David Emerson, to encourage more foreign investment in Canadian airlines to foster increased competition.  Minister Garneau also announced that, pending the implementation of amendments to Canadian Transportation Act (“CTA”), exemptions from the current 25% ceiling would be granted and that exemptions have been granted for two discount airlines, Canada Jetlines and Enerjet.  This appears to be a useful step to bring Canada in line with the foreign ownership model for airlines in other G7 countries but, as always, “the devil is in the details”.

The CTA requires in a two-step process that the operators of domestic air services in Canada must be “Canadian”.  First, section 57 requires that no person may operate an air service unless that person holds a licence issued under the CTA.  Second, section 61(a)(i) requires that an applicant for a license must establish “to the satisfaction of the Agency”, being the Canadian Transportation Agency, that the applicant is “Canadian”.

Section 55(1) of the CTA defines the term “Canadian” to mean a Canadian citizen or a permanent resident or other entity that is incorporated or formed under the laws of Canada or a province, that is controlled in fact by Canadians and of which at least 75% of the “voting interests” are owned and controlled by Canadians.  Presumably, the Minister’s announcement refers to this threshold such that the proposed change will reduce the percentage of voting interests that Canadians must hold to 51%.  However, the Minister’s announcement does not deal with the far more challenging requirement of section 55(1) that the corporation must be “controlled in fact” by Canadians.

Although the concept of ‘control in fact’ is not defined in the CTA, the Canadian Transportation Agency has published a detailed guideline setting out the factors it will consider in assessing whether a Canadian airline is controlled in fact by Canadians.  It is clear from those factors that the percentage ownership of voting shares is only one of many factors that will allow the Agency to conclude whether or not an airline is not controlled in fact by Canadians.  Arguably, the increase in the percentage of voting interests held by a non-Canadian investor will only make it more difficult to satisfy the control in fact test.  The reality is that the Agency has made it clear, even in circumstances in which non-Canadians hold 25% or less of the voting interests, that fact is far from conclusive that the Canadians who hold 75% or more of the voting interests actually control the corporation.

The National Transportation Agency (as it then was) set out the test for control in fact in its 1993 decision related to a proposed investment by American Airlines in Canadian Airlines as follows:

“There is no one standard definition of control in fact but generally, it can be viewed as the ongoing power or ability, whether exercised or not, to determine or decide the strategic decision-making activities of an enterprise. It also can be viewed as the ability to manage and run the day-to-day operations of an enterprise. Minority shareholders and their designated directors normally have the ability to influence a company as do others such as bankers and employees. The influence, which can be exercised either positively or negatively by way of veto rights, needs to be dominant or determining, however, for it to translate into control in fact.” [emphasis added]

The non-exhaustive list of factors to be considered by the Agency in assessing whether there is control in fact by Canadians includes the following:

• Risks and Benefits – Who hold the majoring of the business financial risks and who is entitled to receive the majority of its benefits?
• Concentration of Voting Interests – If a non-Canadian or a group of non-Canadians, individually or together, holds a concentration of the voting interests, it could be indicative of Canadians not being able to exercise control in fact.
• Board of Directors – Canadian shareholders must have the right to appoint the majority of the Board of Directors.  In addition, the majority of the Board members must be Canadian.
• Officers – Control implications could arise if officers have a relationship with non-Canadian shareholders that provides a vehicle through which the non-Canadian shareholders can exert their influence over the operations of the air carrier.
• Shareholder and Board Meetings – The corporation’s quorum provisions must require that a majority of the shareholders or directors at a shareholders or Board meetings must be Canadian and that a majority of the members at a Board meeting have been appointed by Canadian shareholders.
• Veto Rights – Generally, there are no Canadian ownership implications associated with non-Canadian shareholders and their designated directors having veto rights to protect minority shareholders’ investment but veto rights which are comprehensive and broad could indicate that control resides with non-Canadians

There are numerous other factors that will be considered by the Agency including: security rights, the terms of any options and warrants, the existence of rights of first refusal and pre-emptive rights, debt arrangements or guarantees between the corporation and its shareholders, any leases of assets by a shareholder to the corporation, the relative financial strength of the investor, any management agreements or operational or service agreements between the shareholder and the corporation.  The essence of the test is whether non-Canadians have the ability, whether exercised or not, to influence the management or control of the corporation.

Applying its assessment of these factors, the Agency can and has found that control in fact does not reside with Canadians even when voting interests held by non-Canadians are limited to 25%.  McMillan LLP acted recently as counsel for a Chinese investor seeking approval of its proposed acquisition of a 25% voting interest, and a total economic interest of 49%, in Harbour Air Seaplanes.  The application was filed and processed on a confidential basis.  However, we can report that the Agency ultimately approved the investment, but only following a careful examination of the factors potentially affecting control to assess whether control in fact remained with Canadians and to ensure that there was no prospect that any of those factors might allow control to be influenced by the foreign investor.

Accordingly, it is difficult to see how the proposed increase in the threshold for voting interest to 49% will have the desired effect of facilitating an increase in investment by foreigners in Canadian airlines.  Given the broad range of factors that the Agency will consider in assessing whether control in fact resides with Canadians as required by the CTA, allowing non-Canadians to hold 49% of the voting interests is not helpful.  In fact, the challenge for a Canadian airline to demonstrate ‘control in fact’ by Canadians will be even more daunting if 49% of its voting interests are held by foreigners.  The hard question now is how the government will deal with the real issue of ‘control in fact’.

by Karl E. Gustafson, QC

A Cautionary Note

The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

© McMillan LLP 2016

[Guest1]

Order No. 2022-A-11

May 25, 2022

 

APPLICATION by Canada Jetlines Operations Ltd. (applicant) for an exemption from the application of section 59 of the Canada Transportation Act, SC 1996, c 10 (CTA).

 

Case number: 

22-12409

 

BACKGROUND

The applicant has applied to the Canadian Transportation Agency (Agency), pursuant to section 80 of the CTA, for an exemption from the application of section 59 of the CTA to permit it to sell, cause to be sold or publicly offer for sale in Canada a domestic service, large aircraft, in the absence of a licence.

Section 59 of the CTA states that no person shall sell, cause to be sold or publicly offer for sale in Canada an air service unless, if required under Part II of the CTA, a person holds a licence issued under that Part in respect of that service and that licence is not suspended.

The applicant applied for a licence to operate a domestic service, large aircraft. However, as the licence has not yet been issued, the applicant is requesting an exemption from the application of section 59 of the CTA.

The applicant indicates that it intends to commence commercial activities in Canada as early as June 2022.

The applicant states that it seeks the exemption from the application of section 59 of the CTA to commence commercial activities prior to the issuance of its domestic licence in order to operate its service with revenue-carrying passengers starting in June.

ANALYSIS

The Agency deals with applications for exemptions from the application of section 59 of the CTA on a case-by-case basis. Section 59 is a consumer protection measure intended to prevent situations in which consumers in Canada pay for a service to an entity that does not hold a licence issued by the Agency and are left out of pocket or experience any manner of inconvenience or hardship that may result if that entity does not commence operations on schedule.

Accordingly, the Agency, prior to granting an exemption from the application of section 59 of the CTA, considers whether the applicant is taking all the necessary steps to meet all the licence issuance requirements and whether the applicant has demonstrated a high probability of obtaining the required licence prior to the proposed date for commencing operations.

In particular, a Canadian air carrier applying for a domestic licence must establish that it:

1. is Canadian;
2. meets the prescribed financial requirements;
3. has the prescribed liability insurance coverage in respect of the service to be provided under the licence; and
4. holds a Canadian aviation document (CAD) issued by Transport Canada in respect of the service to be provided under the licence.

In this case:

1. The Agency is satisfied that the applicant is Canadian.
2. The Agency has received the documentation and is working on the final approval regarding the applicant's prescribed financial requirements.
3. The Agency has not yet received a certificate of insurance confirming that the applicant complies with the liability insurance requirement, as the applicant has indicated that it will only obtain the insurance immediately prior to commencing the operation of its air service.
4. The Agency has considered the steps that the applicant has taken to obtain a CAD from Transport Canada, and is satisfied that the CAD will likely be issued in June 2022.

In the present circumstances, considering the intent of section 59 of the CTA and the fact that the applicant is taking the necessary steps to meet all the licence issuance requirements, the Agency, pursuant to paragraph 80(1)(c) of the CTA, exempts the applicant from the application of section 59 of the CTA, effective from the date of this Order until such time as a decision is made to either issue or not issue a licence, permitting it to sell, cause to be sold or publicly offer for sale in Canada a domestic service, large aircraft, without holding the required licence, subject to the following conditions:

1. All advertising in any media, whether written, electronic or telecommunications, shall include a statement that the air service is subject to the Agency's approval, and all prospective passengers shall be informed, before a reservation is made or a ticket is issued, that the air service is subject to the Agency's approval;
2. Should the licence not be issued or still not be issued by the time that an air service sold to a passenger is to be used, the applicant shall arrange to provide alternative air transportation by an appropriately licensed air carrier, at no additional cost, for all passengers who have made reservations with the applicant. If such arrangements are not possible or acceptable to the passengers, the applicant shall arrange to provide a full refund of all monies paid by the passengers. The applicant will also indicate on every contract or ticket who will be operating the service.

For clarification, this exemption from the application of section 59 of the CTA does not relieve the applicant from the requirement to hold a licence in respect of the service to be provided, and, accordingly, no flights shall be operated until the appropriate licence authority has been granted. This exemption also does not relieve the applicant from the requirement to apply its published tariffs, on file with the Agency and in effect, to sales of transportation for each point.

 

Member(s)

[Junior]

Sounds like they need an exemption for some reason. Did something not go as planned?

[Guest1]

3 hours ago, Junior said:

Sounds like they need an exemption for some reason. Did something not go as planned?

Exemption requested is normal for a start up so they can advertise and sell seats in advance of the final licences.  Thus the guarantees withing the ruling. 

[Guest1]

Quote

Canada Jetlines Successfully Completes Necessary Transport Canada Demonstration Flights

8 July 2022Canadian Aviation News

July 08, 2022

TORONTO–(BUSINESS WIRE)–Canada Jetlines Operations Ltd. (NEO: CJET) (“Canada Jetlines”) the new all-Canadian, leisure airline, is proud to announce successful completion of all demonstration flights for Transport Canada in the process to obtain its Air Operator Certificate (AOC). On July 5, 2022, Canada Jetlines operated a flight from the Region of Waterloo International airport to Greater Moncton Roméo Leblanc International airport and back, to the satisfaction of Transport Canada inspectors.

“We are extremely proud of our operations team for successfully completing this comprehensive program with Transport Canada. There are only a few administrative items for Transport Canada to complete before issuing the AOC, which is expected to be completed within the next two weeks”Tweet this

“We are extremely proud of our operations team for successfully completing this comprehensive program with Transport Canada. There are only a few administrative items for Transport Canada to complete before issuing the AOC, which is expected to be completed within the next two weeks,” shared Eddy Doyle, CEO of Canada Jetlines. “As a start-up during the pandemic, we emphasize preparation and collaboration. We are currently staffed and equipped to accommodate and welcome guests to travel with Canada Jetlines.”

With the aim to begin airline operations in the next few weeks, Jetlines intends to begin ticket sales imminently. Please visit www.jetlines.com to learn more, sign up for email updates, and follow on all social media platforms to join the Canada Jetlines family.

About Cana

 

[Junior]

Canada Is Getting A Brand New Airline & It's An 'All-Canadian Airline That Is All About Value' (msn.com)

[Vsplat]

All Canadian, eh?  Seems to me there was an exemption issued to the 25% foreign ownership limit back in the day.  How much is held outside of Canada now?

Vs

[Maverick]

17 hours ago, Junior said:

Canada Is Getting A Brand New Airline & It's An 'All-Canadian Airline That Is All About Value' (msn.com)

Visionary sees a crowded market and says "me too!"

[boestar]

if I had a dollar for all of the "Brand new canadian airlines" that no longer exist I could buy a meal at Mcdonalds

 

[Vsplat]

If I had a nickle for every time crew sked tried me on I could retire.  Wait,,,,

[conehead]

1 hour ago, boestar said:

if I had a dollar for all of the "Brand new canadian airlines" that no longer exist I could buy a meal at Mcdonalds

 

[Vsplat]

That looks like hors d'oeuvres..... only 370 cals, hardly worth the gas to drive over.  Let's add 2 all beef patties special sauce....

[Guest2]

Networks

Canada Jetlines applies for permission to fly Florida routes

By Pilar Wolfsteller16 September 2022

Canadian discount start-up airline Canada Jetlines has applied to the US Department of Transportation (DOT) for authority to fly to the USA.

The Vancouver-based leisure carrier, which has not yet launched revenue flights, is “developing relationships with Melbourne-Orlando and Sarasota Bradenton International airports for Florida service”, it says in a 13 September filing.

Orlando and Sarasota are among several Florida destinations popular with Canadian tourists during the northern hemisphere’s winter. Thousands of tourists, also known as “snowbirds”, flock to the warmer climate between November and April.

Source: Canada Jetlines

Canada Jetlines takes delivery of its first aircraft on 27 December 2021

The carrier, which has pushed back its launch several times, now says it will begin revenue service on 22 September, with flights between its base in Toronto and Calgary International airport. It had previously planned to begin flying to Winnipeg and Moncton, New Brunswick, in early August, but delayed the start from 15 August to 29 August, and now to end-September.

According to Cirium fleets data, the carrier has just one airframe, an 11-year-old Airbus A320 formerly operated by Colombian flag carrier Avianca and Turkey’s Pegasus. Jetlines has said it aims to acquire four more 737s annually starting in 2023, with plans to have 25 jets in 2025.

Jetlines has been many years in the making. The airline went through numerous top management changes since coming onto the scene as early as 2014. It is the second of two start-up Canadian discount airlines slated to launch this year. The other, Calgary-based Lynx Air, began revenue flights in April using new Boeing 737 Max 8s.

Lynx and Jetlines join WestJet subsidiary Swoop and Flair Airlines – both of which operate 737s – in that country’s low-cost segment.

[Guest2]

CANADIAN AVIATION NEWS

CANADIAN AIRLINE AND INDUSTRY NEWS

Canada Jetlines Receives Final FAA Approval for U.S. Flight Operations

19 December 2022Canadian Aviation News

TORONTO, ON, DECEMBER 19, 2022 – Canada Jetlines Operations Ltd. (NEO: CJET) (“Canada Jetlines” or the “Company”) the new, all-Canadian, leisure airline, is pleased to announce that the United States (U.S.) Federal Aviation Administration (FAA) has granted the carrier authority to operate and fly to and from the United States. This news follows the recent economic authority granted by the U.S. Department of Transportation, several weeks ago.

“The U.S. is a major market for Canadian travellers and we are looking forward to expanding our international network.  Jetlines is ready to start flying to the Melbourne/Orlando International airport in Florida and to the  Harry Reid International Airport in Las Vegas, with both inaugural flights scheduled for January 19, 2023,” stated Eddy Doyle, President & CEO Canada Jetlines.

This update follows Canada Jetlines’ confirmation of nonstop service to Vancouver, which officially launched with the inaugural flight on December 9, 2022. In addition to its regular service, Canada Jetlines will operate numerous charter flights throughout December. Canada Jetlines will also be welcoming a second Airbus A320 aircraft as of December 19, 2022, which will help meet demand during peak travel season.

About Canada Jetlines

[Guest1]

Determination No. A-2023-18

February 1, 2023

 

APPLICATION by Canada Jetlines Operations Ltd. (applicant) pursuant to subsection 69(1) of the Canada Transportation Act, SC 1996, c 10 (CTA).

 

Case number: 

22-45561

 

The applicant has applied to the Canadian Transportation Agency (Agency) for a licence to operate a scheduled international service, large aircraft, in accordance with the Arrangement between the Government of Canada and the Government of the Republic of Cuba set out in an Agreed Minute, signed on May 8, 2015 (Arrangement).

The Agency is satisfied that the applicant meets all the applicable requirements of subsection 69(1) of the CTA. The Agency also finds that the pertinent terms and conditions of the Arrangement have been complied with.

Accordingly, the Agency issues the licence.

Pursuant to subsection 71(1) of the CTA, the licence is subject to the conditions prescribed by the Air Transportation Regulations, SOR/88 58, and the following conditions:

1. The Licensee is authorized to operate a scheduled international service on the route(s) set out in the Arrangement.
2. The scheduled international service is to be conducted in accordance with the Arrangement and any applicable arrangements agreed to between Canada and Cuba.

 

Member(s)

Mark MacKeigan

 

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[Guest1]

Determination No. A-2023-21

February 1, 2023

 

APPLICATION by Canada Jetlines Operations Ltd. (applicant) pursuant to subsection 69(1) of the Canada Transportation Act, SC 1996, c 10 (CTA).

 

Case number: 

22-45568

 

The applicant has applied to the Canadian Transportation Agency (Agency) for a licence to operate a scheduled international service, large aircraft, in accordance with the Agreement on Air Transport between the Government of Canada and the Government of Jamaica, signed on December 20, 2016 (Agreement).

The Agency is satisfied that the applicant meets all the applicable requirements of subsection 69(1) of the CTA. The Agency also finds that the pertinent terms and conditions of the Agreement have been complied with.

Accordingly, the Agency issues the licence.

Pursuant to subsection 71(1) of the CTA, the licence is subject to the conditions prescribed by the Air Transportation Regulations, SOR/88 58, and the following conditions:

1. The Licensee is authorized to operate a scheduled international service on the route(s) set out in the Agreement.
2. The scheduled international service is to be conducted in accordance with the Agreement and any applicable arrangements agreed to between Canada and Jamaica.

 

Member(s)

Mark MacKeigan

Determination No. A-2023-17

February 1, 2023

 

APPLICATION by Canada Jetlines Operations Ltd. (applicant) pursuant to subsection 69(1) of the Canada Transportation Act, SC 1996, c 10 (CTA).

 

Case number: 

22-45542

 

The applicant has applied to the Canadian Transportation Agency (Agency) for a licence to operate a scheduled international service, large aircraft, in accordance with the Arrangement between the Government of Canada and the Government of Antigua and Barbuda set out in an Agreed Minute, signed on May 10, 2016 (Arrangement).

The Agency is satisfied that the applicant meets all the applicable requirements of subsection 69(1) of the CTA. The Agency also finds that the pertinent terms and conditions of the Arrangement have been complied with.

Accordingly, the Agency issues the licence.

Pursuant to subsection 71(1) of the CTA, the licence is subject to the conditions prescribed by the Air Transportation Regulations, SOR/88 58, and the following conditions:

1. The Licensee is authorized to operate a scheduled international service on the route(s) set out in the Arrangement.
2. The scheduled international service is to be conducted in accordance with the Arrangement and any applicable arrangements agreed to between Canada and Antigua and Barbuda.

 

Member(s)

Mark MacKeigan

[Guest1]

Determination No. A-2023-20

February 1, 2023

 

APPLICATION by Canada Jetlines Operations Ltd. (applicant) pursuant to subsection 69(1) of the Canada Transportation Act, SC 1996, c 10 (CTA).

 

Case number: 

22-45567

 

The applicant has applied to the Canadian Transportation Agency (Agency) for a licence to operate a scheduled international service, large aircraft, in accordance with the Agreement on Air Transport between Canada and the European Community and its Member States, signed on December 18, 2009 (Agreement).

The Agency is satisfied that the applicant meets all the applicable requirements of subsection 69(1) of the CTA. The Agency also finds that the pertinent terms and conditions of the Agreement have been complied with.

Accordingly, the Agency issues the licence.

Pursuant to subsection 71(1) of the CTA, the licence is subject to the conditions prescribed by the Air Transportation Regulations, SOR/88-58, and the following conditions:

1. Subject to the availability of rights as set out in Annex 2 of the Agreement, the Licensee is authorized to operate a scheduled international service on the route set out in the Agreement.
2. The scheduled international service is to be conducted in accordance with the Agreement and any applicable arrangements agreed to between Canada and the European Community and its Member States.

Determination No. A-2023-23

February 1, 2023

 

APPLICATION by Canada Jetlines Operations Ltd. (applicant) pursuant to subsection 69(1) of the Canada Transportation Act, SC 1996, c 10 (CTA).

 

Case number: 

22-45572

 

The applicant has applied to the Canadian Transportation Agency (Agency) for a licence to operate a scheduled international service, large aircraft, in accordance with the Arrangement between the Government of Canada and the Government of Saint Lucia set out in an agreed Minute, signed on May 5, 2016 (Arrangement).

The Agency is satisfied that the applicant meets all the applicable requirements of subsection 69(1) of the CTA. The Agency also finds that the pertinent terms and conditions of the Arrangement have been complied with.

Determination No. A-2023-22

February 1, 2023

 

APPLICATION by Canada Jetlines Operations Ltd. (applicant) pursuant to subsection 69(1) of the Canada Transportation Act, SC 1996, c 10 (CTA).

 

Case number: 

22-45570

 

The applicant has applied to the Canadian Transportation Agency (Agency) for a licence to operate a scheduled international service, large aircraft, in accordance with the Agreement between the Government of Canada and the Government of the United Mexican States on Air Transport signed on July 27, 2018 (Agreement).

The Agency is satisfied that the applicant meets all the applicable requirements of subsection 69(1) of the CTA. The Agency also finds that the pertinent terms and conditions of the Agreement have been complied with.

[Rich Pulman]

Interesting. Jetlines has two airplanes and every time I go to work one is sitting on an FBO ramp at the north end of CYYZ with its engine covers on. A friend who works there says they did multiple flights to cover for the Sunwing meltdown over the holidays. So riddle me this… How does a 2-plane airline have spare capacity? 

[FA@AC]

2 hours ago, Rich Pulman said:

How does a 2-plane airline have spare capacity? 

They don't fly their scheduled routes much.  Last time I looked, they were only operating 5-6 flights per week.

Edited February 3, 2023 by FA@AC

[Guest1]

Months after launching, discount airline Canada Jetlines temporarily pulls out of Calgary market

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It's leasing its aircraft, crew to another carrier; expected to return in spring or fall

Karina Zapata · CBC News · Posted: Apr 04, 2023 5:00 AM MDT | Last Updated: 3 hours ago

The last Canada Jetlines flight between Toronto and Calgary was on Jan. 19, 2023. (Canada Jetlines/Instagram)

56

comments

After announcing an optimistic launch last September, with its inaugural flight landing in Calgary, Canada's newest discount airline has temporarily pulled out of the Calgary market and will focus on leasing its aircraft to another carrier.

Canada Jetlines began operations on Sept. 22 and was scheduled to service twice weekly flights from Toronto's Pearson International Airport to Calgary International Airport.

But earlier this year, it quietly removed Calgary as a destination from its website. It currently flies travellers from Toronto to Vancouver, Las Vegas and Cancun and back.

The company's chief commercial officer, Duncan Bureau, says the decision is temporary.

"We still believe Calgary is an important part of our market," he said.

The original plan was to service Calgary year-round, Bureau says, but plans changed when the airline received an opportunity to lease one of its two aircraft and crew to another carrier.

Now, one of its planes is operating into high-demand destinations in Mexico and the United States and its other plane is dedicated to an ACMI (airplane, crew, maintenance and insurance) operation.

• Canada Jetlines, the latest airline to enter a crowded field, set to take off

"We will be back into Calgary probably in the spring or fall of 2023," said Bureau, though he says that depends on the airline's ability to add new aircraft to its fleet.

Canada Jetlines currently has two Airbus A320s — an all-economy jet with 174 seats. Bureau says the plan is still to fly 15 aircraft by 2025.

Prioritizing ACMI operations

Bureau says Jetlines recently came off an ACMI contract, and has just signed another five-month daily contract.

ACMI operations are when airlines offer their airplane, crew (both cockpit people and cabin crew), maintenance and insurance to another individual or company. It operates completely on that individual or company's schedule and under their marketing.

"What that does for Jetlines is it gives us guaranteed flying hours at a negotiated rate. So the risk for us is significantly less because someone else is taking the risk of the operating cost of the aircraft," said Bureau.

Canada Jetlines has pulled out of the Calgary market for the winter but expects to be back this spring or fall if it can expand its fleet. (CBC)

Bureau wouldn't say who the aircraft is being leased to, but he said it's an attractive offer for airlines and they usually take the opportunity.

Order for 5 Boeing aircraft

Rick Erikson, an independent aviation analyst based in Calgary, says the entire situation would usually make him question the airline's business plan and financials. 

But that changed when he saw that Canada Jetlines recently ordered five brand new 737 MAX 7 planes from Boeing.

"Those aircraft are $50 million plus each, and I suspect there's going to be some pretty good money put down to hold those delivery positions," said Erikson.

"That gives me a little more confidence in Jetlines and certainly how deep their pockets are."

• Another discount airline takes off — but they may not all survive

• Startup airlines hope to capitalize on pent-up travel demand

Under the order, Canada Jetlines is added to a waitlist among other airlines. Erikson says Jetlines could be waiting until well into 2024, or even into 2025.

"I wouldn't be surprised if they lease some 737 Max probably starting in the fall…and into the winter schedule to prepare themselves for when they take delivery of their own aircraft."