TORONTO — One of several contenders to be Canada’s ultra low-cost carrier, Canada Jetlines Ltd. said it plans to go public with a listing on the TSX Venture Exchange (TSX.V). If it goes ahead, the transaction will provide Jetlines with the funding to achieve milestones in the buildout process in launching an ULCC airline in Canada.

The upstart airline said it has received funding interest and offers from multiple sources for a 40-aircraft route structure model and business plan to cover the first eight years of operations.

On its website Jetlines says it estimates the demand for lower airfare in Canada equals a market of 10 million new passenger trips per year flying domestically, to the U.S., Mexico and the Caribbean, and “believes that this 10 million passenger market is currently unserved.”

The company said its business plan is focused on using the following principles:

1: Avoid head-to-head competition with Air Canada and WestJet (by selecting secondary routes – many unserved or underserved routes in Canada);

2: Plan on being matched on airfares and added aircraft capacity (plan passenger load factors between 65% to 75%);

3: Don’t ‘burn’ passengers with high ancillary revenue fees (keep ancillary revenue fees to $30 or less per passenger);

4: Provide 30” seat pitch due to longer sector lengths in Canada (do not reduce to the seat pitch used by Rouge or other U.S. ULCC airlines); and;

5: Focus on an improved passenger experience without an increase in costs (when prices are matched, the passenger experience matters).

Back in December 2014 Canada Jetlines announced it had signed a deal to acquire up to 21 Boeing 737 Max aircraft with delivery starting in 2021. At that time the company was hoping to launch a new discount airline in 2015. The deal included five firm orders and purchase rights for an additional 16 aircraft and some conversion to the 737-8 Max aircraft.

Jetlines’ plan to go public comes one month after NewLeaf Travel Company announced it was temporarily postponing sales of airline tickets pending a Canadian Transportation Agency (CTA) review of licensing regulations for Indirect Air Service Providers. At the time NewLeaf said it aimed to resume taking reservations in the spring.