Canada Jetlines eyes June 1 launch

Incoming ULCC Canada Jetlines is eyeing foreign investment to fund the airline’s June 1 launch, according to CEO Stan Gadek.

The Canadian Press reported that during an investor conference on Tuesday, Gadek said that he has received interest from ‘significant undisclosed airline investors,’ adding that the initial focus is foreign capital, particularly from Europe and the US, because there's a lack of risk capital in Canada.

The airline has received a foreign ownership exemption from the federal government, which will allow for 49 per cent foreign ownership with no single investor having more than a 25 per cent stake, the report stated.

Earlier this fall, Canada Jetlines announced that it will start operations from Hamilton, Ont., and will add Abbotsford, B.C. in 2019, with plans to fly out of Montreal. It will initially fly four Boeing 737s, adding four annually to reach 24 planes by 2023.

The airline, which plans to offer fares with an average below $100, will launch in June alongside WestJet’s ULCC Swoop, bringing the number of Canadian low-cost carriers to three; Flair Airlines, previously operating as NewLeaf, was launched in 2016.