Canada’s Ultra-Low Fare Airline


Overview: Jetlines is currently in the government airline licencing process and plans to operate an ultra-low cost carrier (“ULCC”) airline throughout Canada and provide non-stop jet service from Canada to the United States, Mexico and the Caribbean. Jetlines will start with six Boeing 737 aircraft in its first year of operations and expand to 40 aircraft over the first eight years of operations. Jetlines has an experienced management team and Board, including a former ULCC commercial officer with senior executive experience, a member with senior airline financing experience, and a previous low cost airline CEO. Jetlines has also received an exemption from the Government of Canada that will permit it to conduct domestic air services while having up to 49% foreign voting interests

Our Business Plan: Jetlines is currently executing its business plan using all of the industry techniques to lower costs to become Canada’s first “pure version” ULCC airline. Pure version ULCC airlines like easyJet, Wizz Air, Ryan Air, Air Asia and Spirit Airlines, use more cost saving techniques than “discount airlines within a major airline”, like the failed discount airline “Zip” (2002 to 2004) created by Air Canada, the failed discount airline “Ted” (2002 – 2008) created by United Airlines, or the failed discount airline “Song” (2003 to 2006) created by Delta Airlines.

Pure version ULCC airlines are also different than Indirect Service Providers (e.g. NewLeaf) that are really travel companies renting aircraft from different airlines, but lack the ability to lower costs to the same extent as a pure version ULCC airline. Jetlines will use the proven and profitable pure version ULCC model to significantly lower airfares in order to create millions of new passengers, and plans to retain these passengers by demonstrating a “passion for service”.

Jetlines’ “clean sheet” ULCC business plan also opens up for jet air service many of Canada’s secondary airports that lack this type of service, but have demonstrated a strong business case for jet service into their communities. Jetlines plans to operate scheduled point-to-point all jet air service with primary bases at the Vancouver International Airport ("YVR") and Southern Ontario (Hamilton International Airport (“YHM”), and/or Region of Waterloo International Airport (YKF)), with a secondary base at the Winnipeg International Airport (“YWG”). This is consistent with the May 9, 2017 announcement that established the Southern Ontario Airport Network (“SOAN”) of eleven airports that surround Toronto. The focus of SOAN is to enhance air transportation service and capacity in the region and the low fare air service that will be offered by Jetlines will directly serve this goal. Jetlines can confirm that it has commenced negotiations with some of the SOAN member airports with the intent to operate ULCC flights using these airports.

Our Business Structure: Jetlines is a federally incorporated company subject to the Canada Business Corporations Act, listed on the TSX Venture Exchange (“TSXV”), ticker symbol “JET”. It intends to operate as a licensed Canadian airline. Its capital structure has been formed in order to comply with Canadian airline licensing requirements and provides for common voting shares to be held by Canadians, and variable common voting shares to be held by foreigners.

Foreign Ownership Exemption: On December 2, 2016, the Federal Government provided Jetlines an exemption from the current foreign ownership rules. The Exemption Order was granted for a five-year term ending on December 1, 2021 and will permit Jetlines, through its operating subsidiary, to conduct domestic air services once it satisfies all the remaining licensing requirements. The Exemption Order was issued subject to certain conditions, including:

  1. at all times, at least 51% of the voting interest of Jetlines must be owned by Canadians;
  2. no single foreign investor or its affiliates can own more than a 25% voting interest in Jetlines;
  3. no non-Canadian air carrier or its affiliates can own more than a 25% voting interest in Jetlines; and
  4. at all times Jetlines must be controlled in fact by Canadians.

At the end of the term of the Exemption Order, Jetlines must conform to the legislative requirements on foreign ownership that are in place at such time.

Our Branding Philosophy: “Affordable Airfares with a Passion for Service”

Our Motto: “Flying Your Way”, provides the opportunity for customers to add their own value to a flight.

Our Target Customer: An airline for people who wish to save money when travelling by air. By offering no frills low base fares, and providing customers the ability to choose which additional options to pay for, they will be able to control their travel budget like never before. Our passengers want low base fares, convenience, great service, safety, and value options, all in one package. This is something that does not presently exist in the Canadian market. Many of our customers cannot afford to fly with the two dominant Canadian airlines, and other speciality airlines in Canada are limited by existing high costs and are not flying to the extent that customers would prefer. By applying the ULCC model, not only will more Canadians fly more often, but a ‘new’ market of Canadian travelers will be created, comprised of persons who:

  1. are not presently flying from Canadian airports due to high airfares;
  2. are not flying because of the lack of jet service from Canada's secondary airports/local airports;
  3. are using American ULCC airlines flying from airports located in border towns near the Canada-United States border; or
  4. are not flying to domestic or trans-border destinations because the service is not currently offered, or is offered via multiple stops and connections (which is unappealing for travellers).

Our Values:

Safety - safety is paramount at Jetlines, and underscores all plans of operations;

Our Customer - maximizing our guest’s value proposition by providing the lowest possible pricing, excellent passenger comfort and convenience, and the highest level of customer service available;

Our People – hand-picked, professionally trained and customer-centric, delivering great customer experiences, building brand awareness and loyalty, and most importantly, earning repeat business; and

Innovation - using innovation and technology to continuously drive customer satisfaction and corporate profitability, while reducing and controlling costs.

Our Customer Service Value Proposition:

  1. A high-touch customer-centric service level both in-flight and on-ground, a result of our focus on cabin attendant recruitment, training, management support and individual ‘empowerment’;
  2. Culturally diversified staff, including cabin attendants;
  3. Value added ‘up-sales’ and ancillary products that are made simple, clear and reasonable;
  4. A seamless and continuous in-flight service responding to customer wants and needs, with a range of ‘route specific’ products and services, true to the philosophy that ‘one size does not fit all’;
  5. An addition commission-based pay structure for all cabin attendants for on-board sales;
  6. A high cabin attendant presence in the cabin during the flight with increased accessibility for the passengers; and
  7. A goal to provide a simple and friendly customer experience