Jet Metal has entered into a definitive agreement with start-up airline Canada Jetlines (Jetlines) to form a new ultra-low cost carrier (ULCC).
The new deal is followed by an agreement signed in February between Jetlines and Jet Metal with respect to a business combination of both companies.
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The companies are currently preparing materials for their respective shareholder meetings to approve the new deal and obtain all required regulatory approvals, including the approval of the TSX Venture Exchange.
Jetlines has plans to operate scheduled point-to-point all jet air service across Canada with primary bases at Vancouver and Hamilton international airports, with a secondary base at Winnipeg International Airport.
Established in 2013, the carrier is also planning to operate flights throughout Canada, the US, Mexico and the Caribbean.
While operating its flights, Jetlines expects to use the commercial aviation ULCC profitability model in order to attract new passengers and reduce cost.
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By GlobalDataJet Metal and Jetlines have not mentioned timeline for completion of the deal, which is subject to a number of closing conditions.
After signing a letter of intent for the deal in February, Canada Jetlines president and CEO Jim Scott said: "With this transaction, Jetlines will have the working capital to move forward in earnest and we expect to be announcing a number of major developments in a timely manner."
