MONTREAL, Feb 5 (Reuters) - Canadian discount airline Jetsgo said on Thursday it will buy 18 used Fokker 100s from American Airlines (AMR) in a bid to more than double its fleet and steal more passengers away from Air Canada (AC) and WestJet Airlines Ltd. (WJA).
Jetsgo will take delivery of seven of the 105-seats aircraft immediately. The others will be delivered over the next year.
The Montreal-based airline did not disclose financial details, but said the purchase of the first seven plans would be financed with its own cash reserves.
The privately held carrier, launched two years ago, said the expansion will include the hiring of 650 new employees, which should bring its total workforce to around 1,300.
Jetsgo, which already operates 14 160-seat MD-83s, said the new planes would fly on its existing routes as well as new ones to be announced before June. The airline currently flies to 11 Canadian cities and 6 U.S. cities.
"Even though we are introducing a second aircraft type into our fleet, we will maintain the same low seat-mile cost, which is the best in the Canadian industry," Jetsgo president Michel Leblanc said in a release.
Jetsgo will take delivery of seven of the 105-seats aircraft immediately. The others will be delivered over the next year.
The Montreal-based airline did not disclose financial details, but said the purchase of the first seven plans would be financed with its own cash reserves.
The privately held carrier, launched two years ago, said the expansion will include the hiring of 650 new employees, which should bring its total workforce to around 1,300.
Jetsgo, which already operates 14 160-seat MD-83s, said the new planes would fly on its existing routes as well as new ones to be announced before June. The airline currently flies to 11 Canadian cities and 6 U.S. cities.
"Even though we are introducing a second aircraft type into our fleet, we will maintain the same low seat-mile cost, which is the best in the Canadian industry," Jetsgo president Michel Leblanc said in a release.