Canada Jetlines says it is getting foreign capital support for June 1 launch

MONTREAL — Canada Jetlines’ CEO says the fledgling airline is looking for capital outside of Canada to help fund the June 1 launch of the ultra low-cost carrier.

Stan Gadek told an investor conference Tuesday that it has received interest from significant undisclosed airline investors.

He says the initial focus is foreign capital because there’s a lack of risk capital in Canada while Europe and the United States have experience with the low-cost business model.

The federal government has given the airline an exemption from foreign ownership rules that will allow it to have 49 per cent foreign ownership with no single investor having more than a 25 per cent stake.

Canada Jetlines plans to start operations from Hamilton, Ont., and will add Abbotsford, B.C. in 2019 and hopes to fly out of Montreal down the road.

It will initially fly four Boeing 737s, adding four annually to reach 24 planes by 2023.

Ganek says the airline will offer the absolute lowest fare in the marketplace, with an average below $100.

He criticized WestJet’s (TSX:WJA) claims that it can double revenues from fees for flight changes, cancellations and checked bags.

Ganek says customers will make their decision based on the final cost so airlines can’t get carried away charging ancillary fees.

Earlier, WestJet CEO Gregg Saretsky told the Scotiabank transportation and aerospace conference that Canada hasn’t historically supported more than the equivalent of 2.5 airlines.

He said the plans for three new startups, plus its Swoop and Air Canada Rouge brands will make for a crowded market.

Saretsky added that the Calgary-based airline won’t make Air Canada’s mistakes in launching Rouge in 2013 by ensuring passengers don’t get any nasty surprises.

Flights will be booked on a separate website, check-in will be at a separate Swoop airport counter and the uniforms will be a different colour.

Just Posted

Accused murderer takes stand

Jason Klaus said he had no idea his family would be killed by Joshua Frank

St. Patrick’s school modernization could include asbestos removal

Red Deer Catholic Regional Schools have told staff, students and parents connected… Continue reading

Campaign renews push to make Bighorn Backcountry a wildland provincial park, ATV groups unhappy

A push to provide provincial protection for the Bighorn Backcountry area has… Continue reading

Providing more services while keeping taxes low is Blackfalds’ dilemma

Town has undergone years of above-average growth

Creationist will speak at home-schooling convention in Red Deer

Ken Ham has debated Bill Nye on the Earth’s origins

VIDEO: Replay Red Deer: Nov. 19

Watch news highlights from the week of Nov. 13

Creationist will speak at home-schooling convention in Red Deer

Ken Ham has debated Bill Nye on the Earth’s origins

Update: Innisfail girl found

A 15-year-old missing Innisfail girl has been located safe and sound. Police… Continue reading

Cost to fix Phoenix pay system to surpass $540 million, auditor general says

The federal government’s chronic salary struggles will take more time and more… Continue reading

Red Deer Christmas Bureau to help 1,300 children this year

Demand is high, but Red Deer always provides

CP Holiday train makes stops in Central Alberta

The popular train will feature entertainment from Colin James and Emma-Lee

Kittens rescued after allegedly being tossed from vehicle

Couple finds abandoned kittens new home through Facebook

VIDEO: ‘Party bus’ goes up in flames in Vancouver

Fire crews responded to the late night blaze

Chicken crosses B.C. road, stops traffic

Rooster makes early morning commuters wait in Maple Ridge

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month