Vancouver-based Canada Jetlines has shaken up its management team by adding a new CEO even though it remains unclear when the aspiring ultra-low-cost carrier will make its first flight.
The company announced June 1 that Stan Gadek will replace Jim Scott as CEO. Scott, who is one of the company’s co-founders, has also left the Jetlines’ board of directors. Scott had been CEO since 2012.
Another executive change at Jetlines came in February 2016, when former president David Solloway left.
“Mr. Gadek has an excellent track record of success in the airline industry, and will bring his experience to bear in the company’s successful launch,” said Jetlines’ executive chairman Mark Morabito in a statement.
“Mr. Scott was instrumental in the early-stage growth of the company, and created a strong foundation for Mr. Gadek.”
Jetlines (TSX-Venture:JET) went public via a reverse takeover on March 7 and was trading at $0.30. The company’s stock closed at $0.20 on June 1.
The company, which has been readying for launch since 2014, has endured multiple delays and has recently been circumspect about exactly when its flights will launch.
“We’ll fly when we’re ready,” Morabito told Business in Vancouver on March 2.
“We’re not going to promise we’ll be flying by ‘X’ date. There’s a very detailed process that’s involved in getting an airline flying and we’re going to follow it step by step.”
A little more than a month after Jetlines’ entry onto the TSX Venture Exchange, WestJet announced that it planned to launch a low-cost airline and compete head-on with Jetlines.
WestJet CEO Gregg Saretsky told the Greater Vancouver Board of Trade June 1 that plans for WestJet’s new low-cost carrier are coming along and that a name for the new carrier will be announced in the next few weeks.
He told a media scrum after that speech that he respects Jetlines despite its management shuffles and delays.
“We learned a long time ago to always take everybody seriously, even when maybe you shouldn’t have to,” Saretsky said.
“I think that Jim’s departure – I don’t know the reasons behind it. It’s never good when a company loses a leader at the top. It signals either a different direction or an upset for a different reason. I won’t speculate on that.”
