Skip to main content

Rendering of a Canada Jetlines aircraft, a new ultra-low-cost airline that says it expects to start operations in December 2019.

Canada Jetlines

Canada Jetlines Ltd. is postponing its planned December launch and laying off most employees after failing to secure $40-million in required financing and losing investment partners.

The company says the Dec. 17 startup of the ultralow-cost airline will be delayed to an undisclosed date and it will not pay additional deposits to receive the first two Airbus 320 planes next month.

Jetlines says it couldn’t satisfy financing conditions in addition to funds committed by SmartLynx Airlines. As a result, SmartLynx and InHarv ULCC Growth Fund have exercised their rights to terminate their investment commitments.

Story continues below advertisement

The company says it has been difficult to engage investors because they believe WestJet Airlines, which owns discount carrier Swoop, will “react very aggressively once the company starts operations, and in fact have already done so in anticipation of Jetlines entry into the market.”

As a consequence, it plans to reduce activities until the Competition Bureau finalizes its investigation into WestJet actions.

Canada Jetlines says a market analysis it retained has found evidence that Swoop is pricing significantly lower than other discount carriers and below avoidable costs on the routes identified by the Competition Bureau investigation.

It plans to conserve cash by laying off most employees except a core team led by the executive chairman, Mark Morabito, who will continue meeting with investors trying to secure financing. Chief executive Javier Suarez has resigned effective immediately along with board member Zygimantas Surintas.

“It is very unfortunate that we have to postpone our launch date,” Mr. Morabito said. “We have built as much as anybody can without access to more capital. We have invested in bringing on board the most talented people who have done an incredible job putting together our operations manuals and systems, our brand, website and all other commercial components needed for launch.”

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter
To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies