Fledgling ultra-low cost Canadian airline Jetlines has made a bold move with a firm order for five Boeing 737 Max 7 aircraft worth $438 million at list prices.
The contract includes an option for an additional 16 jets.
The Vancouver based carrier has yet to start commercial operations and has earmarked summer 2015 for its launch.
"I think it’s a brave move on their part, very bold," said Rick Erickson, managing director of aviation consultancy R.P. Erickson & Associates.
"It’s a message they’re sending to the investing community – we’re going to be around in 2021, and we’re so confident of it that we’re putting our money down now on aircraft purchases."
Jetlines will lease older 737-300 jets for its launch, and gradually build up its fleet size before taking delivery of the new planes.
The carrier plans to fly to under-served destinations without direct competition from major carriers.
David Sollaway, president of Jetlines is still keeping planned routes under wraps, but cities such as Edmonton, Fort McMurray, Saskatoon and Winnipeg are being considered based on a presentation to investors earlier this year.
The business model will likely focus on domestic services in the summer with additional vacation flights to the US and Mexico in winter.
To fund startup costs Jetlines recently announced its intention to file for a IPO, seeking to raise about $44 million.
