Jetlines Welcomes Proven Ultra-Low Cost Airline Executive as New CEO


VANCOUVER, British Columbia, Sept. 11, 2018 (GLOBE NEWSWIRE) -- Canada Jetlines Ltd. (JET: TSX-V) (the “Company” or “Jetlines”) is pleased to announce the appointment of Mr. Javier Suarez as Chief Executive Officer of the Company after being promoted from the role of Chief Commercial Officer.

Javier is replacing the Company’s former CEO, Mr. Lukas Johnson. Mr. Johnson recently informed the Company that he will be returning to the United States for personal and family reasons. Prior to his departure, he is showing his support for Jetlines and its new CEO by investing $700,000 into the Company.

Lukas Johnson commented, “While I need to return to the United States at the end of October 2018 for personal and family reasons, I am very supportive of Javier and Jetlines business plan. I understand the need for a true ultra-low cost carrier airline in Canada and that is why I am investing $700,000 into the Company. Javier has a great deal of experience and knowledge, and I have absolute confidence in his ability to successfully step into this role. I will be assisting with continued progression of the launch plans for the next two months to ensure a smooth transition.”

Mr. Javier Suarez has over 15 years of airline experience with expertise in most commercial functions, strategy and operations. Most recently, Javier was Vice President, Network Planning, Revenue Management, E-Commerce with ultra-low cost carrier VivaAerobus. Javier was part of the senior management team that improved profitability from a breakeven in 2014 to becoming the most profitable airline in Mexico in 2017. During his tenure, he was responsible for growing its fleet from 13 to 32 aircraft between 2014 and 2018. He was also part of the team who recently negotiated the purchase of VivaAerobus’ 25 new Airbus 321NEO aircraft.

Javier’s previous experience includes holding progressively senior roles with Vueling Airlines from 2010 to 2014, a successful low cost carrier in Europe, most notably as the Director of Network Planning, Scheduling, Slots and Corporate Affairs. During his tenure, Javier managed the network of the airline, growing the fleet size from 38 to 105 aircraft in a four-year span. He defined the Vueling network strategy that operated close to 400 routes that generated over USD $2 billion in revenue. Additionally, Javier was responsible for launching more than 200 routes over three years, achieving a 92% success rate. Prior to his tenure with Vueling, Javier held the role of Senior Strategist with Qatar Airways from 2008 to 2010 and Quality Manager with Iberia Regional AirNostrum from 2002 to 2006.

Javier has earned a Masters in Management from Harvard University, Masters in Marketing from ESIC Marketing School in Madrid, and Bachelor of Arts, Airline Business Administration from the University of Madrid. “With years of executive experience growing two of the world’s most successful low-cost carriers, Mr. Javier Suarez will take Jetlines through to its first flight,” said Executive Chairman, Mr. Mark Morabito.

The $700,000 investment, which Mr. Johnson was originally planning to make while CEO, has been restructured. Instead of acquiring a 5% equity interest in the Company’s subsidiary (Canada Jetlines Operations Ltd.), Mr. Johnson will complete a private placement for variable voting shares of the Company. Mr. Johnson will purchase variable voting shares for an aggregate subscription price of $700,000. Subject to TSX Venture Exchange (“TSXV”) approval, the subscription price per share shall be equal to $0.43. The completion of the private placement, which is expected to occur within the next two weeks, is subject to the approval of the Exchange and is subject to certain escrow conditions regarding future sale of stock.

In connection with his appointment as Chief Executive Officer, Mr. Suarez will be granted 750,000 Restricted Share Units (“RSUs”). The RSUs vest over a three-year period from the date of grant, with one third vesting at the end of each year during the three-year period.

About Canada Jetlines Ltd.

Canada Jetlines is set to become Canada’s first true Ultra-Low Cost Carrier (ULCC) airline, with plans to operate flights across Canada and provide non-stop service from Canada to the United States, Mexico and the Caribbean. Jetlines is led by a board and management team with extensive experience and expertise in low-cost airlines, start-ups and capital markets.

For more information on Jetlines, please visit our website at www.jetlines.ca.

ON BEHALF OF THE BOARD
"Mark J. Morabito"
Executive Chairman

Canada Jetlines is part of the King & Bay group of companies. King & Bay is a merchant bank that specializes in identifying, funding, developing and supporting growth opportunities in the resource, aviation, and technology sectors.

For more information, please contact:
Canada Jetlines Ltd.
Toll Free: 1-833-226-5387
Email: investor.relations@jetlines.ca

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" concerning anticipated developments and events that may occur in the future. Forward-looking information contained in this news release includes, but is not limited to, statements with respect to the business plan, the closing of the private placement, the ability to offer ultra-low fares, potential route destinations, ticket sales and future airline operations of the Company.

In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the receipt of financing to commence airline operations, the accuracy, reliability and applicability of the Jetlines’ business model; the timely receipt of governmental approvals, including the receipt of approval from regulators in Canada, the United States, Mexico and other jurisdictions where Jetlines may operate; the timely commencement of operations by Jetlines and the success of such operations; the ability of Jetlines to implement its business plan as intended; the legislative and regulatory environments of the jurisdictions where the Jetlines will carry on business or have operations; the impact of competition and the competitive response to the Jetlines’ business strategy; and the availability of aircraft. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks related to acts of God, the impact of general economic conditions, changing domestic and international airline industry conditions, volatility of fuel prices, increases in operating costs, terrorism, pandemics, currency fluctuations, interest rates, risks specific to the airline industry, the ability of management to implement Jetlines’ operational strategy, the ability to attract qualified management and staff, labour disputes, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, risks related to any potential disputes that might arise as a result of the agreement with Boeing to acquire 737-Max aircraft,  financing, capitalization and liquidity risks, including the risk that the financing necessary to fund operations may not be obtained and the additional risks identified in the "Risk Factors" section of the Company's reports and filings with applicable Canadian securities regulators.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.