Jetlines postpones launch indefinitely

By Skies Magazine | October 29, 2019

Canada Jetlines will not be taking to the air on Dec. 17 as planned.

Instead, the Vancouver-based ultra-low-cost carrier (ULCC) is reportedly laying off most of its staff and will not be paying additional deposits to receive its first two Airbus A320 aircraft.

The delay comes after Jetlines failed to secure $40 million in additional required financing, prompting both SmartLynx and InHarv ULCC Growth Fund to terminate their investment commitments.

No further launch date will be announced until the required funding is arranged.

Meanwhile, executive chairman Mark Morabito plans to continue meeting with investors in an attempt to secure financing. Jetlines’ contracts have been put on hold and documentation submitted to Transport Canada will continue to be updated as needed, said the airline.

Jetlines’ management has repeatedly aired concerns about the lack of competition in Canada’s airline industry to the national Competition Bureau, reportedly making several presentations between January and July 2019.

The start-up alleges that WestJet’s ULCC arm, Swoop, is purposely pricing its airfares lower than other airlines and trying to prevent Jetlines from entering the market.

In July, Jetlines staged a “protest in the sky,” in which skydivers protested the Competition Bureau’s perceived lack of action to protect competition in Canada’s airline industry. The skydivers displayed signs encouraging people to sign a petition on the Jetlines website.