Canadian low-cost startup Canada Jetlines has taken out a new loan with travel investment firm Roosheila Group for CAD$1.5 million ($1.12 million) to aid with its expansion.
Loan details
The new carrier, which officially launched services in September, has been bulking up its funding over the past year to support growth across North America. This is the second loan taken out with the Roosheila Group within six months; the airline previously entered into a CAD$1 million ($750,000) agreement in August 2022, providing the company with a further 50,000 shares across the next several years.
Canada Jetlines’ new agreement, announced on February 10, will add a further CAD$1.5 million to its funds for “aircraft acquisition, general corporate and working capital purposes.”
Running for five years following the date of advance, the airline will pay off the holdings company with equal monthly installments and an annual 10% “principle repayment” over the next five years, with a yearly interest rate of 7.95%.
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Unlike its previous loan, no shares have been issued on this occasion; however, Roosheila Group will remain one of the largest shareholders of the airline, representing a roughly 17% total stake (including warrants) in the airline as of April 2022.
Predicting growth
The past several months have seen significant growth for the airline. After receiving its Department of Transportation (DOT) authorization to begin US services in November, Canada Jetlines unveiled several new scheduled routes, including Las Vegas (LAS) and Melbourne Orlando (MLB), set to start later this month, while a second route to Cancun (CUN) is planned for March.
Canada Jetlines currently operates domestically from its base in Toronto (YYZ) to Calgary (CAL) and its latest addition of Vancouver (YVR), which launched in December.
Scheduled and charter operations for the carrier have scaled up rapidly; between December 2022 and January 2023, Canada Jetlines saw a nearly five-fold increase in charter flights compared to November 2022, with 95 charter flights completed, for a total of 350 hours.
A second leased Airbus A320 narrowbody was added to the airline’s fleet in November 2022, bolstering operations further. However, the leisure carrier is eyeing a further 13 jets to join its fleet over the next several years to meet anticipated tourism demand in Canada.
“Canada Jetlines sees significant opportunities in the Canadian travel and tourism sector, with strong demand domestically and in international markets like the USA, Mexico, Jamaica, and many others,” Canada Jetlines noted in a statement.
“The airline continues to build out strong relationships with tourism boards, airports, and economic development stakeholders and charter brokers.”
Alongside growing its network, the carrier has also been working to improve the customer experience during the booking process, partnering with a range of companies to upgrade its digital online offerings. In January, Canada Jetlines announced three new partnerships with TRAVELKORE, TripAdmit, and BOOM Group to provide customers with improved travel safety services, better booking options, and a streamlined travel rewards program.
Have you flown with Canada Jetlines? What was your experience? Let us know in the comments.
Source: ch-aviation