LONDON – On September 12, the new Canadian start-up carrier, Canada Jetlines, revealed its intention to raise yet more additional financing privately in order to begin its operations.
The Further Start-Up Financing
In less than three weeks since Canada Jetlines announced a new loan agreement with Rooshelia Group Inc for a $1 million loan as well as obtaining their Canadian Air Operating Certificate (AOC), the new start-up Canadian airline has revealed more of its plans to bring in more financing in order for them to successfully begin commercial operations.
Their new intention is to bring in a further between $1.2 and $1.5 million or $0.255 per unit in order to assist with the acquisition of aircraft as well as funding their corporate tasks and working capital measures.
The request for the additional financing has been proposed to not only the carriers founding shareholder, Global Crossing Airlines Group, their management team, but also its current employees.
Which, as an incentive, whoever participates in bringing in cash towards the goal of between $1.2 and $1.5 million will receive one additional share unit for every six share units they subscribe to.
As part of the new financing goal, Canada Jetlines has already obtained yet another loan of $130,000 from an unnamed arm’s length third-party lender. This particular loan will be carried out under the following four terms –
- The loan will hold an interest rate of 7% per annum.
- A maturity date of six months from the closing date will be set, which can be renewed for an extra six months upon the agreement of both Canada Jetlines and the third-party lender.
- The loan’s principal and interest amounts are payable at maturity unless, if the loan is renewed for the additional six months, only interest would be payable.
- The loan is unsecured.
At present, the carrier has only one aircraft in its fleet, an Airbus A320, registered as C-GCJL and currently leased from Jackson Square Aviation (JSA).
Of course, in line with the new financing above, they are actively seeking additional funds to bring in more aircraft, which are likely to be more Airbus A320s.
A few weeks ago, when Canada Jetlines was granted its Canadian AOC, their Chief Executive Officer, Eddy Doyle, said:
“The entire team at Canada Jetlines is thrilled to obtain our AOC after meeting all necessary operation standards and passing all inspections. We thank Transport Canada and greatly appreciate the tireless effort and diligence they undertake to approve new airlines.”
“We excitedly look forward to our launch date, meeting the increased demand for convenient, leisure travel in Canada and beyond and providing more options to explore the world.”
It is evident that Canada Jetlines is raring to go full steam ahead with its start-up plans and is eagerly awaiting to begin commercial operations.
However, the additional funds highlighted above will mean that the carrier will be able to survive for longer during their start-up phase, where they will be aiming to earn trust from the people of Canada to bring in their expected passenger volumes.