Startup LCC Canada Jetlines has announced plans to raise $10 million and to list on the TSX Venture Exchange.
The carrier has signed a letter of intent with Inovent Capital, under which it will negotiate a reverse takeover that would give Canada Jetlines access to the stock market.
Under the proposed deal, Inovent aims to raise $10 million prior to the airline’s listing on the Venture Exchange.
Canada Jetlines plans to focus on an “ultra-low-cost” business model.
Jetlines President Dave Solloway said: “You build the airline that people want to fly, not necessarily the airline that would be in your dreams. The focus is on low airfares - about 40% lower than Air Canada and WestJet”.
Analysts have cautioned that the Canadian market in particular is difficult for LCCs to penetrate.