Jetlines, Global Crossing Airlines enter into business combination

Canada Jetlines Ltd. (JET: TSX-V) (JETMF: OTCQB) has announced it has entered into a letter of intent with Miami-based Global Crossing Airlines, regarding a business combination of Jetlines and GLOBALX, the company said.

GLOBALX is a developing United States based charter airline and is financially backed by two Miami based private-equity firms.

GLOBALX plans to operate a US 121 charter airline using the Airbus A320-200 aircraft. GLOBALX business model includes the intention to provide ACMI and wet lease contracts to airlines operating within and to the United States and develop aircraft interchange with leading European charter/tour operators GLOBALX is currently in regulatory certification and is led by an operating team with a combined 140 years´ experience — including the former head of maintenance for two major US based A320 LCC carriers, and two retired Principal FAA inspectors with specific experience in the new Safety Management Systems and Quality Assurance.

Jetlines has determined that the Transaction provides the best opportunity at the present time to maximize value for the Company. The current intra-Canadian airline market is in a state of flux with consolidation ongoing at the major carriers, as well as at least three currently operating or planned market entrants in the Ultra-Low Cost Carrier segment.