Canada Jetlines Provides Statement on WestJet Announcement
VANCOUVER, British Columbia – April 20, 2017 – Jim Scott, CEO of Canada Jetlines Ltd. (TSXV: JET) (the “Company” or “Jetlines”) made the following statement in response to WestJet’s announcement earlier today that it plans to launch an ultra-low cost carrier airline:
“Today’s announcement by WestJet is recognition that millions of Canadians continue to be underserviced by airlines in markets throughout the country, while millions more are looking for a lower-cost option than what has been offered by Canada’s two dominant carriers.”
“We believe that what Canadians need however, is a genuine Ultra Low-Cost Carrier (ULCC) and greater competition. Today’s announcement offers nothing more than an ‘airline within an airline’ that will not increase competition into the market, and it remains to be seen whether it will be able to achieve the full benefits of a ULCC.”
“Most ‘airlines within airlines’ that have attempted to offer low-cost options for air travelers have failed in North America, including Zip, Ted, Song, Metrojet, Calite, and United Shuttle. The continent is littered with the graves of these lower-cost airlines, precisely because the model doesn’t work when the airline is owned by another airline.”
“Successful and genuine ULCC airlines such as Ryanair, Spirit, EasyJet, Air Asia, and Allegiant Airlines, are able to achieve the full benefits of a ULCC, including lower-cost, precisely because they operate independently of a parent carrier.”
“Jetlines will continue to work toward its goal of providing new low-cost options for the more than 10 million Canadians who are not choosing to fly in Canada and repatriating the five million annual flights Canadians have been accessing via US airports, by providing Canadian consumers with a genuine ULCC and more competition.”
Jetlines’ is executing its business plan to become Canada’s first true ultra-low cost carrier (“ULCC”) airline. Jetlines will use the proven and profitable commercial aviation ULCC model to create new passengers with low airfares, and plans to retain these passengers by demonstrating a “passion for service”. Jetlines plans to operate flights throughout Canada and provide non-stop service from Canada to the United States, Mexico and the Caribbean, starting with six Boeing 737 aircraft in its first year of operations. Jetlines has an experienced management team and Board and has received an exemption from the Canadian Government that will permit it to conduct domestic air services while having up to 49% foreign voting interests.
For more information on Jetlines, please visit our website at www.jetlines.ca.
ON BEHALF OF THE BOARD
“Mark J. Morabito”
President & CEO
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This news release contains “forward-looking information” concerning anticipated developments and events that may occur in the future. Forward looking information contained in this news release includes, but is not limited to, statements with respect to with respect to: (i) Jetlines’ business objectives, operational timelines, operating cost expectations and investment requirements; (ii) anticipated operational and structural trends in the Canadian passenger airline market; (iii) removal of conditions relating to the completion of the Transaction; (iv) execution of the Transaction Documents; (v) completion of the Concurrent Financing; (vi) receipt of TSXV and shareholder approvals of the Transaction; and (vii) waiver of the sponsorship requirements.
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Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks related to acts of God, the impact of general economic conditions, changing domestic and international airline industry conditions, volatility of fuel prices, increases in operating costs, terrorism, pandemics, currency fluctuations, interest rates, risks specific to the airline industry, the ability of management to implement Jetlines’ operational strategy, the ability to attract qualified management and staff, labour disputes, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund operations may not be obtained and the additional risks identified in the “Risk Factors” section of the Company’s reports and filings with applicable Canadian securities regulators.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information.
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