Although the new CEO of Canada Jetlines (TSXV:JET) has only been in the Captain’s seat for one day, his role in leading what will be Canada’s first ULCC (Ultra Low Cost Carrier) has caught the quick attention of the media and press.
Stan Gadek, who is also a director of JET, has a very successful career in the aviation industry south of the border including a major turnaround (Sun Country) as well as Senior VP Finance with NYSE listed AirTrans, which was sold to Southwest for $1.3 billion in cash and stock.
As was noted in a March 2013 article in Minnesota newspaper the StarTribune: “Gadek, who ran the airline for nearly five years, took over as CEO in 2008 just as it was tail-spinning into bankruptcy. Gadek is credited with turning Sun Country into a solid money making operation within two years of his arrival.”
Mr. Gadek was a guest on BNN’s The Business News with Michael Hainsworth today where he noted that JET will take to the skies in 2018.
In the interview, Michael Hainsworth stated that Jetlines was 65% foreign owned and 35% domestically owned. By way of correction, here are the actual numbers as of March 31, 2017:
Canada: 49,941,715 shares – 5,039 shareholders – 86.6%
Foreign: 3,593,195 shares – 69 shareholders – 6.2%
Source – Computershare Investor Services Inc., Broadridge Canada and Broadridge US.
Interview highlights include:
- ULCC’s have been very successful in markets that have high airfares and Canada’s fares are 16th highest in the world.
- Jetlines will have the lowest costs in the industry and will offer fares at a significantly lower price point than the incumbent carriers thus stimulating demand and driving profitability.
- Lower costs start with productivity.
To watch the BNN interview, please click here.