Canada’s Ultra-Low Fare Airline

Canada Jetlines Ltd. plans to be the first ULCC operating in Canada




November 4, 2016

Canada Jetlines, planning to launch operations in summer 2017, will build strong primary and secondary routes by operating scheduled point-to-point jet air service with primary bases at the Vancouver International Airport (“YVR”) and in Southern Ontario. Jetlines plans to operate flights throughout Canada, the United States, Mexico and the Caribbean, starting with six Boeing 737 aircraft in the first year of operation and expanding to 40 aircraft over the first eight years of operations.

Canada Jetlines will use the proven and profitable commercial aviation ULCC model to attract new passengers with low airfares, and plans to retain these passengers by demonstrating a “passion for service”. The ULCC model focuses on standardization of plane size and seating options, point to point flight patterns, using lower cost airports options. This provides a business focus on cost control while ancillary revenue is achieved through customer up-sales for additional services. It has proven highly profitable throughout the world and is growing significantly as part of the total airline market.

Jetlines looks forward to working closely with its various stakeholders to successfully launch operations in the Canadian market.

Jetlines:


Estimates the demand for lower airfare in Canada equals a market of 10 million new passenger trips per year flying domestically, to the USA, Mexico and the Caribbean;

Believes that this 10 million passenger market is currently unserved;

With a clean sheet opportunity, has the ability to structure its costs as a ULCC airline to dominate this 10 million passenger market, which equals 60 new Boeing 737-700 aircraft;

Is led by a knowledgeable management team with Canadian and international experience who understand the airline industry and is supported by an accomplished Board of Directors;

Plans to offer base airfares significantly lower than those of major existing carriers in Canada;

Intends to offer high levels of service with on demand in-flight service;

Plans to, where possible, use non-major airports in Canada to attract new passengers;

Has signed a definitive purchase agreement with The Boeing Company to acquire up to twenty-one (21) Boeing 737 MAX aircraft for delivery commencing in 2021. The Agreement includes five (5) firm orders, purchase rights for an additional sixteen (16) 737 MAX and some conversion rights to the 737-8 MAX aircraft; and

Has constructed a detailed 40 aircraft route structure model and business plan to cover the first eight years of operations; and

Jetlines has completed Phase 2 of a four phased approach to establish Canada Jetlines as the first Ultra Low Cost Carrier (“ULCC”) airline in Canada:

Phase 1 – Feasibility and Initiation;

Phase 2 – Planning and Development;

Phase 3 – Plan Execution (build-out); and

Phase 4 – Operations.

Jetlines is currently in the process of securing institutional funding for Phase 3 and 4.