Global Crossing Airlines (TSXV: JET), formerly known as Canada Jetlines, had a major announcement this morning in that it signed a letter of intent for its first passenger aircraft. The aircraft, an Airbus A321, will be operated under a lease with Magnetic Leasing.
The aircraft is currently expected to be delivered this December, following the signing of definitive agreements between Magnetic and Global Crossing, as well as once the aircraft has been painted the company colors in Lake City, Florida. The plane was previously operating by a government owned Asian operation.
The plane itself, a 2005 model year, will be used for the firm to initiate services to Cuba. Those services, which consists of two daily round trips from Miami to Havana, Cuba, will mark the first routine revenues for the firm, with $1.5 million per month expected to be generated from the activity, the first of the firms expected multiple revenue streams.
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The company has noted that it intends to eventually convert the aircraft to freighter service, with GlobalX currently negotiating the acquisition of additional aircraft for conversion as part of its strategic plan.
Additional aircraft leases and purchase contracts are expected to be announced in the next 15 days.
Global Crossing last traded at $0.98 on the TSX Venture.
Information for this briefing was found via Sedar and Global Crossing Airlines. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
