Canadian startup Jetlines is suing David Neeleman of DGN Corporation and Breeze Aviation Group for $27 million citing "tortious interference with business expectancy and violation of the Connecticut Unfair Trade Practices Act."
The fledgeling discount carrier is alleging that Neelman and his affiliates embarked on "a predatory scheme" to sabotage the relationship between Jetlines and an international investment bank - which ultimately ended its interest in raising new capital for the airline.
Jetlines is also claiming that Neeleman and his affiliates had secret communications and meetings in order to lure its former chief executive Lukas Johnson - who left the airline in late 2018 to work for Neeleman's planned US startup, Moxy Airways.
Neeleman is the founder of Canadian carrier WestJet and US carrier JetBlue Airways; while also being the founder of Brazil's Azul remaining the company's board chair.
Jetlines announced last month that it laid off most of its employees after failing to secure $40 million in financing and the loss of key investment partner - this resulted in the postponing of its planned December launch.