JETLINES IS CANADA’S TRUE ULTRA-LOW COST CARRIER

JET:TSX-V / JETMF:OTCQB / www.jetlines.ca / JANUARY 2019

FORWARD-LOOKING INFORMATION
Certain statements contained in this presentation constitute forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of
applicable Canadian securities laws. Such forward-looking statements relate to future events or Canada Jetlines’ (“Jetlines”)future performance. All statements other than statements of historical fact may be
forward-looking statements. Such forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast",
"may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Jetlines believes the expectations reflected in those forward-looking statements are
reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this presentation should not be unduly relied upon. These forward-
looking statements speak only as of the date of this presentation or as of the date specified in the documents incorporated by reference into this presentation, as the case may be.
In particular, this presentation contains forward-looking statements pertaining, but not limited to: expectations as to future operations of Jetlines and the timing and receipt of all regulatory approvals required
or desirable for operations by Jetlines; the expected operations and performance of Jetlines' business as compared to the peer ULCCs (as defined herein) and major Canadian air carriers; Jetlines' business
model and strategy, the criteria to be considered in connection therewith and the benefits to be derived therefrom, including the anticipated desire for ULCC (as defined herein) in Canada; desirability of
operating aircraft on routes that are currently un-served or under-served and the pricing of airfares on such routes; anticipated competitive response from the Major Canadian air carriers as well as potential
new market entrants which may compete with Jetlines; impact of governmental regulation; anticipated Base Airfare and ancillary revenues; expected operating costs, general administrative costs, costs of
services and other costs and expenses; the anticipated increase in the size of the airline passenger market in Canada; ability to generate revenue from ancillary products and services; ability to operate at a
lower CASM than the MCDAs and offer lower base airfares than existing airlines operating in Canada; ability to meet current and future obligations; treatment under governmental regulatory regimes; and
ability to obtain equipment, services and supplies in a timely manner, including the ability to lease or purchase aircraft.
With respect to forward-looking statements contained in this presentation, Jetlines has made assumptions regarding, among other thing: 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. Jetlines has included the
above summary of assumptions and risks related to forward-looking statements provided in this presentation in order to provide investors with a more complete perspective on Jetlines’ current and future
operations and such information may not be appropriate for other purposes. Any financial outlook or future oriented financial information in this presentation, as defined by applicable securities legislation, has
been approved by management of Jetlines. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's reasonable expectations as
to the anticipated results of its proposed business activities. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
Readers are cautioned that the foregoing lists of factors are not exhaustive and it would be unreasonable to rely on any such forward-looking statements and information as creating any legal rights, that the
statements and information are not guarantees and may involve known and unknown risks and uncertainties, and that actual results may differ (and may differ materially) and objectives and strategies may
differ or change from those expressed or implied in the forward-looking statements or information as a result of various factors. The forward-looking statements contained in this presentation are expressly
qualified by this cautionary statement and are made as of the date of this presentation. Except as required by applicable securities laws, Jetlines is not under any duty and do not undertake any obligation to
publicly update or revise any forward-looking statements after the date of this presentation or to conform such statements to actual results or to changes in Jetlines' as applicable, expectations and Jetlines
disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities
laws.
Information is provided in this presentation comparing Jetlines' proposed business model to peer ULCCs and major Canadian air carriers. The Peer ULCCs have been included in this presentation based on
Jetlines management's belief of the similarity of the business of the Peer ULCCs to the proposed business model of Jetlines. Further comparables in this presentation are based on the Major Canadian air
carriers compared to the Peer ULCCs. Comparables such as number of aircraft, average stage length, ASM per aircraft, load factor, ancillary revenue, RASM, CASM, EBITDA per aircraft and were chosen as they
represent what management of Jetlines believes are fundamental metrics for ULCC airlines. Such information was obtained from public sources and has not been verified by Jetlines.

www.jetlines.ca / JET: TSX-V / 2

WHO WE ARE

Our Vision is to be Canada’s ultra-low fare carrier of choice

Our Mission is to provide Canadians with the best value in

air travel with a focus on safety and reliability

“We are a technology company that happens to fly planes

safely.” – Javier Suarez, CEO Canada Jetlines

www.jetlines.ca / JET: TSX-V / 3

DIFFERENTIATING FACTORS
What makes us unique from other Canadian airlines?
Born with ULCC DNA
• Every decision is made with the
goal to reduce cost per seat and
deliver maximum profitability
• Ultra-low base fare with
ancillary services for additional
fees
• Maximum seating density, all-
economy A320 configuration
(180 seats)
• Focus on automation to ensure
workforce efficiency and
productivity
Efficient Operations
• Very high aircraft utilization
during peak periods
• No overnights
• No scheduled connections, no
baggage transfers
• Outsourcing above / below wing
airport staff and maintenance
• Limited human interaction at
the airport – DIY – for checking
in and bag drops
Strategic & Flexible
Network
• Route network designed by a
management team that has
experience launching several
hundred new routes
• Significant variance in schedule
by day of week and season to
match capacity and demand
• Focus on spilled or underserved
peak traffic to mitigate
competition
Marketing &
Distribution
• Utilize next-generation dynamic
pricing / promotion / package
engines not employed by other
Canadian carriers
• Internet distribution focus
• Strong pre-operational growth
in earned followers and organic
engagement on social media
platforms
• Brand that serves as the
‘people’s airline’, targeting cost-
conscious travelers
www.jetlines.ca / JET: TSX-V / 4
INVESTMENT HIGHLIGHTS

Serving Primary Markets • Will fly domestic and international routes on markets where airport incentives and ground handling
From Airports Offering contracts increase the cost difference versus existing competitors
Reduced Operating Cost • Plan to fly to secondary airports near major cities

Stimulating Demand for

• Will incentivize individuals to fly by offering affordable fares
Air Travel with Low Fares

• Jetlines will offer a fully unbundled approach to fares, allowing it to offer base fares approximately
True ULCC Cost Structure 50% below current competitors

Support of Federal and

Local Governmental • Jetlines has been granted an exemption by the government to allow up to 49% voting foreign ownership
Agencies

Experienced Low Cost • Led by Javier Suarez, former VP, Network, Revenue Management and E-Commerce at VivaAerobus
Carrier Leadership • Supporting management are highly proficient individuals who have past ULCC experience

www.jetlines.ca / JET: TSX-V / 5

 AIRLINE & CAPITAL MARKETS BOARD EXPERTISE

Javier Suarez AIRLINE EXPERTISE

CEO • Over 16 years of airline experience, most recently as VP, Network Planning, Revenue, E-Commerce with VivaAerobus, where he helped transform the airline from
breakeven in 2014 to the most profitable airline in Mexico by 2017 growing its fleet from 13 to 32 Aircraft in less than 4 years
• Previously acted as Director of Network Planning, Scheduling, Slots and Corporate Affairs for Vueling, a European ULCC; defined the Vueling network strategy
that operated close to 400 routes and generated over USD $2B in revenue – growing its fleet from 37 to 105 Aircraft in 4 years
Michael Bata AIRLINE EXPERTISE
COO • More than 35 years of experience in the Airline Industry, most notably as Maintenance Director at Southwest Airlines where he was responsible for all
maintenance and engineering operations of the Western Region, leading a team of 665 employees and maintaining a USD $459 million annual budget
• Past Chief Operating Officer at Vueling Airlines where he successfully lowered long term maintenance costs by €290 million through a strategic sourcing project

Jordi Porcel AIRLINE EXPERTISE

Chief Sales, Marketing, & • Over 20 years of executive experience in the airline industry, holding senior positions with several notable airlines, most notably, he was the Chief Sales Officer
Customer Experience Officer for Vueling, where he helped the company expand rapidly and profitably in Europe during the global financial crisis.
• Previous Head of Europe at Air Arabia, a fast growing and profitable low-cost carrier. During his tenure, Mr. Porcel helped grow the European business by 26%.

Mark Morabito CAPITAL MARKETS EXPERTISE

Executive Chairman
Saad Hammad
Independent Director
Tony Lefebvre
Independent Director
Jason Grant
Independent Director
• 20 years of public market experience including capital raising and corporate development
• Founder/principal of numerous successful companies and raised over $900 million to finance their development and attained two NYSE listings
• Led the completion of a transaction with China’s second largest steel company (third largest in the world) in its first foreign investment for a $400 million
investment to support the development of a Canadian iron ore mine
AIRLINE EXPERTISE
• Over 30 years of business, executive, and board experience across a variety of sectors
• Past CEO of Flybe, a UK-based low-cost carrier and the largest independent regional airline in Europe, responsible for business with £700 million revenue, 79
aircraft, 8.2 million passengers
• Served as CCO for easyJet, assisting in the doubling of revenue from from £1.3 billion in 2005 to £2.7 billion in 2009
AIRLINE EXPERTISE
• Over 27 years of executive experience, including eight years with Spirit Airlines (“Spirit”), a leading U.S. ULCC
• Past Chief Operating Officer at Spirit where he was responsible for flight operations, maintenance, and in-flight
• Worked at US Airways as a Managing Director where he led US Airways’ European operations across 16 countries
AIRLINE & CAPITAL MARKETS EXPERTISE
• Over the last 20 years, Mr. Grant has been directly involved in raising more than US$900 million in aviation and transportation capital
• During his tenure as CFO at a NASDAQ-listed company, Atlas Air Worldwide, a cargo airline, passenger charter airline, and aircraft lessor with revenue of over $1
billion, the equity market capitalization of the Company grew by over 250% to over USD $1.5 billion

www.jetlines.ca / JET: TSX-V / 6

 CANADA AT A GLANCE

GDP (CAD in Trillions)

Major airports and their surrounding population within
a 2 hour drive (Millions)

1.74

1.68
1.65 1.66

1.60

2013 2014 2015 2016 2017

Annual Domestic & Trans- Border Passengers

0.6 (Millions)
Victoria
1.1
2018 E*, 10.7
2.5 Edmonton
Vancouver
1.2
0.6 Calgary 116.8 120
Kelowna 1.0 106 110.9
99.8 104.2
Winnipeg 3.5
Montreal 1.2
Halifax
10.0
Toronto

4.0
Hamilton

2013 2014 2015 2016 2017 2018 E*

Source: Stats Canada, Internal Analysis www.jetlines.ca / JET: TSX-V / 7

THE CANADIAN MARKETPLACE IS RIPE FOR THE
STARTUP OF AN ULTRA LOW COST CARRIER
Air Travel is Extremely Concentrated Among Just Two Airlines in Canada
Other American
Other
11% Airlines
14% JetBlue
Flair Air Canada 22%
2% 4%
46%
Porter Alaska Airlines U.S. (1):
Canada(1): 5% 5% 80% Is Comprised
81% Is Comprised
of Four Carriers
of Two Carriers United
Airlines
16% Delta Air Lines
21%
WestJet Southwest
34% Airlines
21%

Both Macro and Sector Trends Indicate a High Demand for a Jetlines' Product Offering

Attractive Macro Drivers

Underserved Market

Inflated fares from existing Canadian Strong population growth,

carriers up 5% from 2011 - 2016

Canada is a Major Healthy economic growth for a developed

Lack of flights to underserved airports
Startup ULCC economy with a 2018E-2027E CAGR of
near large population bases
Opportunity ~3% for nominal GDP

Consistently growing Canadian air travel

Canadians drive across the U.S. border to
market with an expected 2018E-2022E
find a ULCC option
CAGR of ~6% for passengers carried
___________________________
Source: CAPA - Centre for Aviation, BMI, Statistics Canada. DIIO stats. www.jetlines.ca / JET: TSX-V / 8
1. Domestic departing seats for 2018.
PROVEN MODEL: ULCCS DELIVER THE HIGHEST
RETURNS

Europe Asia
Jetlines will use the proven North America
global ULCC model that has 106.4M PAX 56.6M PAX
historically achieved 11.1M PAX 73.1M PAX
43.5M PAX
significantly lower costs 21.6M PAX 20.0M PAX
than other scheduled legacy 33.3M PAX
airlines 14.9M PAX 29.3M PAX

24.1M PAX 19.1M PAX

5.1M PAX

Jetlines will have all-in costs Latin America

substantially below WestJet Africa
and Air Canada, while 9.0M PAX Southwest
3.0M PAX Pacific
offering base fares 15.0M PAX
approximately 50% lower
than the mainline carriers 5.1M PAX

34.0M PAX

www.jetlines.ca / JET: TSX-V / 9

WHY NOW?

Lack of Price Strong Population and Positive Sector Trends Wide-Spread

Competition Economic Growth and Opportunities Support

• Approximately 81% of the • Population growth of 5.7% • Canadian propensity to • Jetlines has been granted
Canadian domestic and - 8.2% over the next five travel lags behind the U.S. an exemption by the
trans-border market is years1 by 17.9% (2.8 vs 3.3) due to government to allow up to
controlled by Air Canada lack of competition3 49% voting foreign
and WestJet1 • Stable Canadian dollar ownership
• Profitable Canadian airline
• There is no incentive for • GDP is growing at an sector (estimated $1.5 • The Canadian government’s
the mainline carriers to annual growth rate of billion pre-tax profit for public policy supports
lower fares 1.5%1 2017) greater competition

• As a result, Canada has
some of the highest fares
globally
• Canada ranked 65th out of
80 countries for having the
highest fares2
• ~5 million Canadians drive • Canada is the only G7 • Strong consumer feedback
to U.S. boarder for country without a thriving through social media for
cheaper tickets and ~5 ULCC market lower fares
million don’t fly at all due
to high fares2 • Analysts estimate the
untapped ULCC space will
require 60 A320 - sized
aircraft to fully exploit it2

Source:
1: Stats Canada
2: Globe and Mail
3: OAG (2017), World Bank, Internal analysis, Note that the calculation is based on all departing flights from said countries www.jetlines.ca / JET: TSX-V / 10
 CANADA’S AIR TRANSPORT MARKET IS
CONCENTRATED COMPARED TO EUROPE AND THE USA
Canada - departing seats 2017 USA - departing seats 2017 Europe - departing seats 2017
Ryanair
Other 10%
Other
16% American Airlines
19%
22% easyJet
7%

JetBlue
Sunwing Turkish Airlines
4%
2% 6%
United Airlines Alaska Airlines Other
Air Canada
2% 4% 45%
Air Transat 45%
Lufthansa
3%
6%
Porter
4%
British Airways
Delta Air Lines 4%
United Airlines
15% 20% Air France
3%
Aeroflot
SAS 3%
Westjet Alitalia 3%
Southwest Airlines 2% Iberia Pegasus Wizz Air KLM Vueling
25%
19% 2% 2% 2% 2% 3%

• Two carriers comprise 70% of total departing
seats in the Domestic, Trans-Border, &
International Canadian market
• The top 5 airlines represent 79% of seats
• In the U.S., following consolidation in recent
years, 5-6 monolithic blocks are emerging
• The top 5 airlines represent 80% of seats,
similar to the Canadian market
• However, the four largest airlines are roughly
equal in size
• In the European market, the top 5 carriers
account for just a third of the market
• The largest two airlines by seats are ULCCs
• Consolidation phase is ongoing (e.g. Air Berlin,
Alitalia)

Source: OAG (2017), Internal analysis www.jetlines.ca / JET: TSX-V / 11

AS YET, THE TRUE LOW FARE SEGMENT IS
UNSERVED IN CANADA’S DUOPOLY MARKET
Yield vs
Yield vs.sector
Sectorlength
Length
0.18
0.12

0.15
0.10 Aegean
Alaska United
Delta
AA
Southwest AF / KLM
Many LCCs, such as JetBlue Jet2 IAG
WestJet, are moving up Air Berlin Hawaiian
0.12
0.08 market, creating hybrid easyJet Air Canada
(US cents)

carriers and eroding the Air Europa Finnair

Yield (US cents)

Alitalia WestJet Icelandair

mainline yield gap Virgin TAP
America
0.09
0.06
Frontier Approx.
Yield

Norwegian -20%
Allegiant
0.06
0.04 In recent years, the new
breed of ULCCs have Ryanair Spirit
filled the void left by
yesterday’s LCCs and Wizz Air Approx.
0.03
0.02 have further stimulated -50%
demand

0.00
0.00
0 310 621 932 1,243 1,553 1,864 2,175
0 500 1,000 1,500 2,000 2,500 3,000 3,500
Average sector length (miles)
Region Average sector length (km) Business Model

Canada U.S. Europe Mainline LCC ULCC

___________________________
Source: Internal analysis based on Flightglobal World Airline Rankings 2017.
Note: Yield = Passenger revenue (in USD) divided by RPMs. www.jetlines.ca / JET: TSX-V / 12
PROPENSITY TO TRAVEL BY AIR IN CANADA IS LOW
COMPARED TO SIMILAR DEVELOPED ECONOMIES

Propensity to travel from developed countries (2017)

8.0
7.4
• Canada and U.S. are the only G7 countries without high-speed
7.0
rail. Development is highly improbable given the expansive
geography and investment required
Departing airline seats per capita

6.0
• Canadian propensity to travel lags behind the U.S. by 17.9%
5.0
4.4 (2.8 vs 3.3) due to lack of competition
4.3
3.9
4.0
3.3 3.1
3.0 2.8 2.7 2.7
1.9
2.0 1.6

1.0 • Germany and France both

boast well-developed
0.0 high-speed rail networks,
which dampens the
Denmark

France
Norway

Ireland

Switzerland

Germany
Canada

Finland
Sweden
USA

United Kingdom
demand for air travel in
these countries

Source: OAG (2017), World Bank, Internal analysis

Note: The calculation is based on all departing flights from said countries www.jetlines.ca / JET: TSX-V / 13
ROOM FOR MORE THAN ONE ULCC

Projected Domestic & Trans-Border Passengers

Based Upon 3.5% CAGR Growth
160 (millions)

140 134.5
129.9
125.6
121.3
117.2
120 113.2*

115.2 116.1 117.0 117.7

112.1 114.3
100

80

60

40

16.8
20 13.0 17 M
9.4
6.1
1.1 2.9 Customer
0 Opportunity
2018 2019 2020 2021 2022 2023

ULCC Legacy Total Domestic & Trans-Border

Notes:
• 3.5% annual growth rate in domestic, trans-border, and new demand
• Assumed ULCC market penetration 1% - 12.5% over 6 years
• * 95.7M Domestic and Trans-border + 10M new demand adjusted for 3.5% CAGR in 2017, 2018
Source: Stats Canada, InterVISTAS Consulting Inc., Internal Analysis www.jetlines.ca / JET: TSX-V / 14
COST PER AVAILABLE SEAT MILE COMPARISON

15.0 Jetlines
+58%
14.0 14.4

Jetlines Jetlines
13.0 +8% to +17% 24.8 +40%
12.9
12.0
CASM (Cents CDN)

11.0
10.8
10.0 10.2
9.9*
9.2
9.0

8.0

7.0 Form S-1

Jetlines 10K Filing – Registration 10K Filing – Last 12 Months 2016 Annual
Projected Feb 2017 for Statement, Feb 2017 for – June 30, 2017 Report
CASM (2019) 2016 Mar 2017 2016
6.0

*Spirit is growing capacity at 15-20% annually (Source: May 2017 Bank of America / Merrill Lynch Transportation Conference)
CASM is not stage length adjusted. For example, WestJet’s average stage length for the 12 months ended June 30, 2017
was ~900 miles. Jetlines 2019 average stage length is 1,158 miles www.jetlines.ca / JET: TSX-V / 15
NETWORK OPPORTUNITY IN SOUTHERN ONTARIO

The catchment areas2

around Southern Ontario’s
regional airports is home to
10.2M people, generating
$475 billion in GDP, and
growing at a rate of 2%
annually
YGK
However, only 5% of Billy Bishop Kingston
Southern Ontario’s 6,995,000 people 394,000 people
Waterloo $232B GDP $14B GDP
scheduled flights pass 4,441,000 people 2.2% growth1 1.8% growth1
through the five secondary $178B GDP YTZ

airports (excluding Billy 2.1% growth1

YKF
Bishop), indicating a large
opportunity for Jetlines YHM Hamilton
YXU 4,005,000 people
London $163B GDP
1,931,000 people 2.1% growth1
Windsor $78B GDP
563,000 people 2.1% growth1
$19B GDP
2.2% growth1 YQG

Source: C4SE Economic Model, McKinsey analysis

1 Growth refers to annual GDP growth from 2014-2043
2 Catchment areas refer to a 90km driving distance from each airport and
include areas overlapping with other airports www.jetlines.ca / JET: TSX-V / 16
JETLINES NETWORK – PROPOSED START-UP ROUTE

www.jetlines.ca / JET: TSX-V / 17

JETLINES NETWORK – EXPANSION ROUTE MAP

www.jetlines.ca / JET: TSX-V / 18

NUMEROUS MARKET OPPORTUNITIES FOR JETLINES
BASED ON HIGH FARES

700 Jetlines’ Route Growth Potential

Growth opportunities by
650 (dots above discount line represent potential markets)*
discount threshold:
600 • 40% discount = over 70
550 markets

500
• 30% discount = over 100
markets
Total Revenue Per Passenger (CAD)

450
• 20% discount = over 140
400 markets
40%
350
30%
300
20%
250
0%
200

150 Jetlines Revenue per Passenger

100 (derived from revenue forecast used in financial
projections)
50 = Current Market…
0
0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 2,800
Stage Length (miles)

* Limited to markets with current catchment traffic of over 50 PDEW. Includes markets within Canada as well as international
routes to the US, Mexico, and the Caribbean.
Source: Sabre MIDT Global Demand database. Fares provided by Sabre are in USD and have been converted to CAD. www.jetlines.ca / JET: TSX-V / 19
PRIMARY COMPETITORS IN CANADA
Commenced Mainline Fleet Domestic Destinations
Carrier Operating Model Network Scope
Service Size Market Share Served in 2018

1937 (As Trans-

Legacy Network Carrier Global 189 53% 222
Canada Air Lines)

Leisure
2013 Global 53
Subsidiary

Domestic/
2011 Regional Brand 156
Trans-Border

1996 Hybrid Network Carrier North America/Europe 124 38% 108

Domestic/
2013 Regional Subsidiary 46
Trans-Border

Ultra-Low Cost
2018 Domestic/ Trans-Border 4 Unknown 5
Subsidiary

Regional Network Central and Eastern

2006 29 2% 23
Carrier Domestic/Trans-Border

Sun/Europe/Limited 33 (summer) to 45 <1%

1987 Leisure Carrier 69
Domestic (winter)

10 (summer) to 40 <1%
2005 Leisure Carrier Sun/Limited Domestic 48
(winter)

2016
Ultra-Low-Cost Carrier Domestic 7 2% 10
(As NewLeaf)

www.jetlines.ca / JET: TSX-V / 20

 AIR CANADA IS THE LARGEST OPERATOR IN THE
CANADIAN MARKET, OFFERS THREE BRANDS

Start of Network Fleet Load Domestic Destinations

Carrier Business Model Fleet [orders] Pax Main bases Avg freq
Service Scope age factor share 2017

169 (10 B767, 25

13/w
1937 B777, 29 B787, Toronto
(225 out
(As Trans- Legacy Network 72 A320, 8 A330, 44.8m (primary),
Global 14.9 yrs 83% 56% 169 of 422
Canada Carrier 25 E190) (+9.1%) Montreal,
routes
Air Lines) [114: 61 B737, 45 Vancouver
min. daily)
CSeries, 8 787]

49 (24 B767, Montreal,

4.4m [Incl. in AC
2013 Leisure Subsidiary Global 25 A320) 18.3 yrs N/A Toronto, 49 N/A
(+5.3%) %]
[0] Vancouver

Calgary,
Regional Brand 166 (20 E175, 43
Domestic / 3.4m [Incl. in AC Montreal,
2011 (incl. Jazz, Sky CRJ, 86 Dash 8, 7.4 yrs N/A 119 N/A
Trans-border (+18.5%) %] Toronto,
Regional & others) 17 B1900)
Vancouver

• Few carriers have received as much help as Air Canada in terms of bailouts, restructurings, labour concessions, and pension relief
• In 2009, it almost ran out of cash and consequently, market share was lost to new entrants such as WestJet but also to international carriers
• To claw back lost ground, Air Canada’s recent strategy is to expand aggressively on trans-border (US), intercontinental and 6th freedom (hub) routes
• These segments now account for two thirds of its revenues and offer some risk diversification away from the domestic markets
• Ten-year agreements are in place with most of its unions since 2015

Notes: Average frequency considered over full year across all scheduled routes operated in 2017.
Source: Flightglobal (2017), OAG, Internal analysis. www.jetlines.ca / JET: TSX-V / 21
 WESTJET HAS MORPHED INTO A HYBRID CARRIER
WITH REGIONAL AND LONG-HAUL OPERATIONS

Start of Business Network Fleet Load Domestic Main Destinations

Carrier Fleet [orders] Pax Avg freq
Service Model Scope age factor share bases 2017

121 (117 9/w

Hybrid Network North America B737NG, 4 B767) 22.0m Calgary, (78 out of
1996 9.3 yrs 82% 36% 101
Carrier / Europe [60: 50 B737NG, (+8.2%) Toronto 238 routes
10 B787] min. daily)

14/w
Regional Domestic / 42 Dash 8-400 [Incl. in Calgary, (46 out of
2013 2.4 yrs N/A N/A 61
Subsidiary Trans-border [3 Dash 8-400] WestJet%] Toronto 61 routes
min. daily)

• WestJet started off as an LCC modelled after Southwest with David Neeleman (ex-JetBlue) as one of its founders
• Since then, the airline has added some complexity to its business model, e.g. by offering different fare types and by entering into alliances / codesharing
agreements (over 40 such partnerships exist, e.g. with Emirates, TAM, LAN and Hainan Airlines)
• The airline was able to benefit from Air Canada’s restructuring efforts to build a significant, profitable presence in the Canadian market but has recently
been searching for additional growth opportunities
• In 2013, its Encore regional subsidiary was launched, operating turboprop aircraft
• In 2017, orders for 10 widebody B787s were announced for international expansion and plans for a ULCC were unveiled
• According to industry observers, these two additional initiatives may add too much complexity to a business model that thrives on simplicity
• Moreover, recent pilot unionisation (ALPA) at both WestJet and WestJet Encore will prevent their ULCC from having an ultra-low cost base

Notes: Average frequency considered over full year across all scheduled routes operated in 2017.
Source: Flightglobal (2017), OAG, Internal analysis. www.jetlines.ca / JET: TSX-V / 22
 WESTJET’S NEW LOW-COST SUBSIDIARY – OTHERS
TRIED BEFORE BUT THE TRACK RECORD IS DISMAL
“Those that fail to learn from history,
are doomed to repeat it.”
- Winston Churchill
Rationale • Response to growing competition in the price-sensitive markets

• B737-800 with high-density seating (189 seats) [WestJet: 168 seats]

Fleet • 4 units at launch, 10 by end of first year
LCC subsidiary Parent Start Comment
date

• WestJet CEO: “unlikely to operate in markets with a nice business mix” Continental Lite Continental 1992 Stopped 1994
Network • Separate vehicle with complementary network, avoiding cannibalisation Shuttle United Oct 1994 Stopped Sep 2001

• “ULCC”, unbundled offering MetroJet US Airways Jun 1998 Stopped 2001

Product • Pay extra for extra legroom, checked baggage, priority boarding and seat Delta Express Delta Oct 1996 Stopped Apr 2003
selection
Tango Air Canada Nov 2001 Stopped Sep 2003, became fare
class
Cost • Offering fares 30-40% lower than Canadian mainline carriers
Zip Air Canada Sep 2002 Reintegrated by Air Canada Sep 2004
• Calgary based to “share infrastructure and services with parent” Song Delta Apr 2003 Ceased May 2006
• Highly compensated senior executives from WestJet to lead initiative
Organization • Aircraft will be flown by WestJet pilots who are unionized
Ted United Airlines Feb 2004 Folded into United Airlines Jan 2009

Go British May 1998 MBO in Jun 2001, later sold to

• 100% owned by WestJet
Airways easyJet
• Subsidiary announced April 20, 2017 Buzz KLM Jan 2000 Sold to Ryanair Apr 2003
• ‘Swoop’ brand revealed September 27, 2017
Timeline • Tickets on sale: February 1, 2018
HLX TUI Dec 2002 Merged into TUIFly in Jan 2007

Thomsonfly TUI Mar 2004 Reintegration into charter Nov 2008

• Started operations on June 20, 2018
Snowflake SAS Mar 2003 Became fare class Oct 2004

Basiq Air Transavia Dec 2000 Reintegrated in Transavia in Jan 2005

MyTravelLite MyTravel Oct 2002 Reintegrated into charter in Oct 2005

Bmibaby Bmi Mar 2002 Stopped operations Sep 2012

Centralwings LOT Feb 2005 Ceased trading Mar 2009

www.jetlines.ca / JET: TSX-V / 23

 MAJOR MILESTONES ACCOMPLISHED

Granted an Rebranded with Announced Commenced

Merged with exemption by the new livery and partnerships with trading on the
a public shell government to logo Abbotsford, OTCQB
company to allow up to 49% Hamilton and
help raise voting foreign Halifax airports
capital ownership

Signed a definitive Announces ICAO

agreement for call-sign and Javier Suarez is Jetlines submits Jetlines partners
two airbus A320 registers first announced as documents for its with Radixx
aircraft plane CEO AOC International

www.jetlines.ca / JET: TSX-V / 24

TIMELINE TO LAUNCH OF OPERATIONS

Key Milestones to Launch First Flight

Q3 2018 Q4 2018 Q1 2019 Q2 2019

 Investor presentations  Identify and plan  Recruit and hire pilots  Complete crew training
integrated systems and flight attendants
 Submit airline operating  Complete induction of
certificate  Acquisition process for  Complete maintenance aircraft #1 and #2
documentation to aircraft #3 and #4 contracts
 Obtain airline operating
Transport Canada (Sep
 Finalize airport  Start aircraft #1 certificate and CTA
2018)
agreements and induction authorization
 Ongoing airport and incentives
 Finish hiring process for  Activate all systems
ground handling
 Complete ground key launch departments
negotiations  Bind insurance
handling contracts
 Gain Canadian
 Complete Reservation  Launch operations
Transport Agency (“CTA”)
System contract
waiver for ticket sales
 Commence airline build
 Activate commercial
out of longest lead time
systems, start ticket
systems (reservations,
sales and marketing
Website, etc.)
campaigns

www.jetlines.ca / JET: TSX-V / 25

CONCLUSION

Jetlines will capitalize on the opportunity to bring about a true ultra-low cost carrier model to
Canada

• Offer base fares that are approximately 50% lower than Air Canada and WestJet
Market Opportunity
• ULCC market opportunity of 17 MM customers in 5 years

• Single aircraft fleet – A320 and high utilization

Sustainable Low Costs • Use of secondary airports and significant outsourcing
• Costs 40% lower than Canadian mainline carriers and going lower

• Courteous and friendly service

Brand
• Lowest base fares with added services for a fee

• 4 aircraft per year

Growth
• Multi-based

• Jetlines has been granted an exemption to allow up to a 49% foreign voting ownership
Favourable Timing • The Canadian government’s public policy supports greater competition across all sectors
• Strong economic growth

www.jetlines.ca / JET: TSX-V / 26

CAPITAL STRUCTURE
as of December 31, 2018 Common Shares Strike Price Range Expiry Date

Shares Issued & Outstanding 73,948,611

Options
Vested 3,720,000 $0.20 - $0.76 July 22, 2020 – February 5, 2023
Unvested 2,387,500 $0.21 - $0.76 February 28, 2022 – December 10, 2023
Total Options 6,107,500

RSUs
Vested -
Unvested 2,750,000
Total RSUs 2,750,000

Warrants
JET.WT 8,607,607 $0.375 September 16, 2019
JET.WT.A 7,761,218 $0.50 February 28, 2019
Agent Warrants* 296,952 $0.30
Underlying Agent Warrants* 488,920 $0.50
Other Warrants 300,000 $0.30 March 10, 2019
Total Warrants 17,454,697

Fully Diluted Shares Issued & Outstanding 100,260,808

as of December 3, 2018
Share Price $0.60
52 Week Range $0.36 – 1.42
Market Cap ~ $43.68 million

*Agent Warrants are exercisable for 1 share plus 1/2 Underlying Agent Warrant. The 754,902 Underlying Agent Warrants are issuable on the exercise of the
1,509,805 Agent Warrants. Each whole Underlying Agent Warrant is exercisable for 1 share.
www.jetlines.ca / JET: TSX-V / 27
CORPORATE HEAD OFFICE
1240 – 1140 West Pender Street
Vancouver, BC, V6E 4G1
Tel: 604-681-8030
Fax: 604-681-8039
AIRPORT OPERATIONS ADDRESS
327 – 5360 Airport Road South
Richmond, BC, V7B 1B4
Tel: 604-273-5387
Fax: 604-273-5399
INVESTOR RELATIONS
Toll Free: 1-833-226-5387
investor.relations@jetlines.ca

JET:TSX-V / JETMF:OTCQB / www.jetlines.ca