Canada Jetlines gets another $13.5 Million in equity financing

The financially constrained Canada Jetlines has announced a new deal with an arm’s length investor Jetstream Aviation Inc. to raise $13,500,001.  The Offering consists of common shares issued at $0.1721252 per share.

The Offering is scheduled to close in three separate tranches. The first settlement will occur within two business days of the approval of the Neo Exchange Inc. This first tranche will see the Investor purchase 19,598,017 Shares, equal to approximately 19.9% of the issued and outstanding shares of Canada Jetlines, for an aggregate purchase price of $3,373,313.

Canada Jetlines says it intends to use the money to expand its fleet with another aircraft. Jetstream does not currently hold any shares and when all the financing has been given it will own approximately 50% of the struggling airline.  

The completion of the second and third tranches shall require shareholder approval under the rules and policies of exchange and Canada Jetlines says it will seek approval at a special meeting of shareholders that will be scheduled promptly to occur in Ontario. If all is approved at the end of the transaction Jetstream Aviation will hold 78,431,287 Shares of the airline, representing approximately 50% of the firm.  

As part of the transaction, the Investor will have the right to nominate two directors to the Board of Directors of the Company. The first director will be nominated concurrent with the closing of the second tranche of the offering. The second director will be nominated concurrent with the closing of the third tranche of the offering.

Canada Jetlines currently has a fleet of 3 Airbus A320s aircraft and flies mostly charter services for local sports teams and limited scheduled flights to holiday hotspots of Jamaica, Mexico, Las Vegas and Florida.  The carrier has a published target of 15 jets by 2025, however, that plan seems increasingly unlikely and to facilitate such an increase the airline is said to need a further $50 million. 

This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.

Canadian Government orders 4 Airbus A330 Multi Role Tanker Transport aircraft

The Canadian Government has awarded Airbus Defence and Space with a contract for four newly-built Airbus A330 Multi Role Tanker Transport aircraft (MRTT) and for the conversion of five used A330-200s in a quest to strengthen Canada’s continental defence capabilities. The current contract has an order value of approximately CAD $3 billion or 2.1€ billion (excluding taxes).

Known as the Strategic Tanker Transport Capability (STTC), this new fleet of aircraft will replace the ageing CC-150 Polaris (A310 MRTT), operated by the Royal Canadian Air Force (RCAF). The existing A310 fleet is being used to perform air-to-air refuelling operations, military and personnel and cargo airlift, medical evacuations, as well as strategic transport of Government of Canada officials.

“As the world’s most advanced multirole tanker aircraft, the A330 MRTT perfectly matches Canada’s needs to protect its sovereignty as well as to enhance operations both in the North American Aerospace Defence Command (NORAD) as well as in NATO,” said Mike Schoellhorn, Chief Executive Officer of Airbus Defence and Space. “Canada achieves this enhancement of operations not only by improving interoperability with other allied A330 MRTT customer nations but also due to the aircraft’s technological primacy ahead of the global competition.”

The newly-built A330-200s will be assembled at the A330 aircraft Final Assembly Line in Toulouse, France. Scheduled to enter into conversion at A330 MRTT facilities in Getafe, Spain, in mid-2025, the first MRTT will be delivered to the RCAF in 2027. 

Under the agreement, the A330 MRTTs will be equipped with both the hose and drogue and a boom as refuelling options, cybersecurity solutions and countermeasures. All of them could be installed with the also included Airbus Medical Evacuation kit solution, consisting of 2 Intensive Care Units and additional stretchers.

The contract covers a full suite of training services including the most advanced training devices such as the Full Flight Simulator to prepare and maintain crew readiness as part of the modernisation of the Canadian Armed Forces’ air operational training infrastructure.

Following an open procurement process, in April 2021, Airbus was selected as the only qualified supplier for the CC-150 tanker replacement. With 76 orders from 15 customers and able to carry up to 300 troops, the A330 MRTT accumulates 90 percent market share outside the U.S.A. and more than 270,000 flight hours. As a mature platform, the aircraft has been proven in combat in theatres of operations like the Middle East and the Eastern Flank in Europe, with interoperability, mission success and availability rates as highlights of its performance.

Airbus has been a leading industrial player in Canada’s aerospace sector for almost 40 years. The company employs over 4,000 people locally and sources approximately CAD $2 billion from Canadian companies.  

Canada Jetlines gets final FAA approval for U.S. flight operations

Canada Jetlines has been granted the authority to operate and fly to and from the United States by the Federal Aviation Administration (FAA). 

"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.

Canada’s Flight Attendants Call on Ottawa to Save Their Jobs and Industry

Canada’s Flight Attendants Call on Ottawa to Save Their Jobs and Industry

Canada’s flight attendant union, the Canadian Union of Public Employees (CUPE), is calling on the federal government to act immediately to keep communities across Canada connected and save thousands of jobs in the airline industry.

“Canada remains the only G7 country without a comprehensive plan to support airline workers,” said Wesley Lesosky, President of CUPE’s Airline Division. “Our industry is on life support – we need Ottawa’s help now, and doing so will make all Canadians safer.”