Skip to main content
Access every election story that matters
Enjoy unlimited digital access
$1.99
per week for 24 weeks
Access every election story that matters
Enjoy unlimited digital access
$1.99
per week
for 24 weeks
// //

David Solloway, president at Canada Jetlines Ltd., is photographed at Vancouver International Airport in Richmond, B.C.,  on July 10, 2014.

Rafal Gerszak/The Globe and Mail

Canada Jetlines Ltd., a new airline that plans to begin operating in Canada in 2015, has signed an order to buy five Boeing Co. planes and says it may order as many 21.

The airline, which is in the midst of an initial public offering that is designed to raise $50-million, said the deal involves firm orders for five Boeing narrow-bodied 737 airplanes and purchase rights for an additional 16 aircraft. The purchase of five planes would cost the airline $438-million (U.S.) at Boeing's current list price of $87.7-million each.

"This agreement with Boeing is a major milestone for Jetlines," the company's chief executive Jim Scott said in a statement.

Story continues below advertisement

Canada Jetlines said in a prospectus for the IPO that $13-million (Canadian) of the $50-million it is trying to raise through the IPO will be spent as a down payment on the new planes.

It plans to start operations next year with leased Boeing 737 planes and increase the size of its fleet to eight planes by 2016 if demand warrants.

A market exists in Canada for an airline with revenue-per-available-seat-mile of 10 cents, compared with Air Canada's 18 cents and the 16 cents generated by WestJet Airlines Ltd., the prospectus said.

Base airfares are scheduled to be 30- to 40-per-cent lower than those offered by Air Canada and WestJet, the document said.

The plan is to fly mainly between Vancouver and destinations not now being served by major carriers.

Flights from Vancouver to the B.C. cities of Prince Rupert and Prince George, as well as Fort McMurray, Alta., Saskatoon, Regina and Winnipeg are targeted, according to documents filed with securities regulators.

The documents also point to unspecified destinations in the United States and Mexico.

Story continues below advertisement

The airline's model is based on so-called ultra-low-cost carriers that charge cheap fares, but also generate revenue through baggage fees, charges for seat selection and in-flight meals.

Low fares and new destinations will attract customers who are discouraged from flying because of high airfares and

the lack of jet service to some Canadian cities or are flying out of U.S. airports near the Canadian border on low-cost United States airlines, the regulatory filings said.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Tickers mentioned in this story
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

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

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