An investor group led by Tim Morgan, CEO of Calgary-based charter airline Enerjet, is launching a Canadian ultra-low-cost-carrier (ULCC) service in 2019.
Terms weren’t released for the deal, which closed today.
Consortium members include Canadian investors, among them mid-market private equity firm TorQuest Partners, family office Claridge and Stephenson Management. Indigo Partners, a U.S. aviation private equity firm, is also investing.
The group will back the rebranding and expansion of Enerjet as a ULCC offering destinations in Canada and the United States. Morgan will lead the new company as CEO.
Indigo Managing Partner Bill Franke said the deal aims to “significantly increase the size and competitiveness of Canada’s domestic and trans-border aviation market.”
Canadian Ultra-Low-Cost Airline to Take Off in 2019
CALGARY, Dec. 20, 2018 /PRNewswire/ – An investor group led by Tim Morgan, today announced that it will launch a Canadian ultra-low-cost-carrier (ULCC) service in 2019, bringing affordable, low-cost air travel to millions of Canadians by this time next year.
Backed by significant financial commitments from a consortium of Canadian investors and Indigo Partners, LLC, a leading private equity firm specializing in the aviation industry, Enerjet, a licensed Canadian carrier, will be rebranded, expanded and transformed into an affordable air-travel choice for Canadian travelers. This Canadian ULCC will offer a simple, ultra-low-cost fare structure and an extensive network of destinations across Canada and into the US. Terms of the transaction, which closed today, were not disclosed.
“We believe there are millions of Canadians who would jump at the chance to have a simple, safe, and affordable alternative to the sky-high costs of air travel,” said Mr. Morgan, who will serve as Chief Executive Officer. “We are extremely pleased to have the backing of leading Canadian investors and our partners at Indigo. Together, this group has the financial capacity, experience, and operating expertise to transform Enerjet into a world-class, ultra-low-cost airline that will bring increased choice and competition to the Canadian market.”
As a co-founder, former director and former chief operating officer at WestJet, Canada’s second-largest airline, Mr. Morgan has deep expertise and experience in the Canadian aviation market and is well-respected by aviation professionals, industry partners, and regulators.
“We believe we can significantly increase the size and competitiveness of Canada’s domestic and trans-border aviation market by offering an ultra low-cost alternative to the high cost of air travel,” said Bill Franke, Indigo’s Managing Partner. “Our goal is to be in the market by this time next year to help more Canadians visit family and friends over the holidays and for years to come.”
Enerjet is a licensed Canadian charter airline based in Calgary that commenced operations with Boeing 737 Next Generation aircraft in November of 2008. www.enerjet.ca
About the Investor Group
The investor group is led by a consortium of established Canadian investors. In addition to Tim Morgan, the consortium includes TorQuest Partners, one of Canada’s leading mid-market private equity firms, Claridge Inc. and Stephenson Management Inc.
Indigo is the world’s leading investor in ULCC’s with a successful track record as the lead investor in Tiger Airways, based in Singapore, and Spirit Airlines, based in Ft. Lauderdale, Florida. Indigo also maintains lead investments in Wizz Air Holdings, Plc, a ULCC with multiple bases in Central and Eastern Europe; Frontier Airlines, a ULCC based in Denver; Volaris Airlines, a ULCC based in Mexico City; and JetSMART, a ULCC based in Chile. Indigo is headquartered in Phoenix, Arizona.