Ultra-low-cost carrier Canada Jetlines has placed an order worth US$438 million for five of Boeing’s (NYSE:BA) 737 MAX aircraft.
Although Vancouver-based Canada Jetlines is scheduled to begin offering flights in mid-2015, Boeing is not expected to deliver the order until 2021.
“The 737 MAX’s are for our long-term plan,” Canada Jetlines president David Solloway told Business In Vancouver.
In the meantime, the company will lease Boeing 737-300s, and Boeing Next Generation (NG) 737-700s and 737-800s.
“The MAX airplane is considered a game-changer. They have about a 25-30% fuel efficiency over the 737-300s and about a 20% efficiency over the NGs,” Solloway said.
The Boeing deal also provides Canada Jetlines with the purchase rights for another 16 more planes, which would bring its total fleet to 21.
“We’re just very excited about getting into the market and start flying in the second quarter of 2015, bringing Canadians low-cost airfares,” Solloway said.
“It’s such a huge void in the marketplace.”
Inovent Capital, which is merging with Canada Jetlines, filed a prospectus in late November to raise $50 million to get the Vancouver-based carrier off the ground.
“It’s been a very interesting project to get involved in when we first met them back in June,” Inovent CEO David Brett told Business In Vancouver.
“We had originally planned to raise $10 million through a public offering…and it just grew from there.”
