The ultra low cost airline world got more crowded on Thursday with the announcement that Canada Jetlines plans to launch June 1 with fares of less than $100. But the airline will need to tap into the potential of new regulations that allow up to 49 percent foreign ownership of airlines. CEO Stan Gadek is quoted by BNN as telling an investor conference on Tuesday that he’ll look outside the country for capital to launch the airline because domestic investors don’t have any experience with the low-fare model.
Canada Jetlines is expecting to be based in Hamilton and serve mainly secondary market airports with really low fares. It wants to start with four Boeing 737s and hopes to add four a year to a total of 24. It’s up against some major competition with WestJet’s Swoop starting about the same time and Flair Airlines already in operation and looking to establish a big enough bridgehead to weather Swoop’s entry.