Global Crossing Airlines Group Inc. (JET) Earnings Call Transcript & Summary

Good afternoon, everyone, and welcome to the Global Crossing Airlines management webinar. It's about a month since our last one. I'm Grant Howard, President of The Howard Group. A lot of territory to cover today. Very good presentation. I think the shareholders are going to be happy with what they see in here today. I'll do some introductions. On the left side of your screen, closest to the camera is Mark Salvador. He's the Chief Marketing Officer; Juan Nunez is the Chief Operations Officer; at the head of the table, Ed Wegel, Chief Executive Officer; and on the right side of your screen, Ryan Goepel, who's the Chief Financial Officer. We're getting very close to some significant events. And again, we have much to talk about today. So with that, I'm going to turn it over to Ed. And all of the people at the table are going to be part of this presentation today.

Great. Thanks, Grant. Good afternoon to all of our GlobalX investors and other interested parties, happy to talk to you again today. We thought this would be a great time for another investor webinar. It's beginning of July, believe it or not. And we're at an inflection point here at GlobalX as we move to the next phase of our operations. We also just completed the spinout of Canada Jetlines, as you know, which accomplishes a major goal that we set a year ago to use the Canada Jetlines platform to create basically 2 airlines. And that, through the hard work of Ryan Goepel and some of our new team members in Canada, we've been able to accomplish that. As Grant said, I have with me a couple of our executives today. To my left, Ryan Goepel, our CFO, who's done an incredible job getting us to this point and getting Jetlines spun-off and making sure that we've got the capital to do what we need to do as we move forward. Also, Juan Nunez, as Grant mentioned, is here. Juan is our newly elected Executive Vice President and Chief Operating Officer. He's done an exceptional job running our day-to-day flight operations through the proving runs, which have been going on for the last several weeks. And before that, getting our crews trained, getting our manuals ready and all of the activities around the FAA. Juan has done just an exceptional job, which warranted his promotion to Chief Operating Officer to run our day-to-day operations. He's ensured our crews and our aircraft are ready for the proving runs, and I'll talk about that in a moment, but we've done exceedingly well through that exercise. Mark Salvador is also here, our Chief Marketing Officer. Likewise, done a great job in pulling together our sales and marketing team, getting them as a cohesive unit, working with brokers, clients, everyone involved in chartering aircraft and generating the revenue contracts here that will ensure that we'll be successful, and Mark will brief that in a few moments during the presentation. We want to have all of our management team on these calls during the next few webinars. We want to give you the chance to meet them and see how they operate and how they articulate their particular piece of the operation, and as well, I want to give them some experience in these types of presentations, because they'll be advancing up in the company in the years to come. I want to make sure that they've got the ability to make these sorts of presentations in public and be able to speak well in front of our investors. Your airline, our airline, but it's your airline, continues to perform exceedingly well. At the 80-hour mark of our proving runs, which was last Saturday, the head of the FAA 900 team, which is overseeing our certification, stated to Juan and myself, "GlobalX is a fully functioning and safe airline." That doesn't happen by luck. It takes the dedicated work of all of our 78 team members to bring the airline now to the very brink of receiving its certificate. So let's get into our presentation. And today, we're going to basically show you where we have come from, where we are now and where we are going. But first, let me give you a status update as to where we are this afternoon, which I know is what you really want to know. So I'll give you the information upfront. We're operating a flight today from Miami to Atlantic City, New Jersey. In fact, it's turning and should be leaving Atlantic City shortly. We have 2 flights tomorrow, Miami to Punta Cana and Miami to -- and when it returns, it will do a Miami-Tallahassee flight. All of the FAA scenarios and tests are now completed, with a 96 first-time pass rate. We've essentially completed all of the FAA scenarios at the 80-hour mark. We will be completed with proving runs tomorrow after the Tallahassee flight, which will put us at about 105 hours, which is the regulatory requirement. And we expect that the show cause order will be issued by DOT, just about the time that we finish the proving runs. So let me reiterate. The FAA has deemed us a fully functioning and safe airline. We are completing our proving runs tomorrow with 2 more flights. We have aircraft #3 and 4, now awaiting final board approval for the lease signing. We expect that shortly. And the first delivery will be in late August and the fourth airplane will come in early October. Revenue charters are expected to begin mid-July once we get through the final FAA requirements in Phase 5 and get through the show cause order, which takes a couple of weeks to complete. So that's where we are currently. We are on the brink of receiving our certificate. We just have some 2 more flights to complete and then some paperwork. So we are there. Mark? So again, in today's discussion, we're going to recap the last year and look at our future plans. So what we set out to achieve, what we achieved and what we're going to look to achieve next. So what we set out to achieve, right? At the start, we wanted to certify a US 121 Domestic, Flag and Supplemental Charter Carrier. We're just about there. We wanted to fly the best family of aircraft, both narrowbody and eventual widebody. We have selected our platform. We have selected our aircraft, but we're very happy with that decision. We wanted to build a best-in-class team of Board members, management and in-flight crews, and I think we have surpassed even our own expectations in that regard. We wanted to create the most technologically-advanced and digitally-focused airline in the sector. We have done that with the digital platforms, software systems that we have selected. Now this airline is completely digitized, from the OCC, our operations control center to our maintenance control center, to our training records, to onboard in the cockpit with our cockpit crews with their electronic flight bags and to the iPads that have been issued to all of our flight attendants, everything is done digitally. We maintain as little paper as absolutely necessary, and this is going to make us incredibly efficient in the future. And we wanted to fund our operations with publicly-traded equity, and we've done that with a very strong shareholder base, who we know have been very patient through the years, have been very supportive of us over the last year, and we greatly appreciate that. So what we achieved? So we established our Miami headquarters as our main base of operations. We have completely built out our headquarters here with our OCC and our MCC. We have our stores and where we keep our maintenance parts and records has all been established here in Miami. We've also established our regional bases at Atlantic City and Punta Cana. In Atlantic City, I'll mention that we are now starting the process of interviewing candidates to create our flight attendant base there in Atlantic City, and we have a deal with the state of New Jersey, where they will pay 75% of the salaries of those flight attendant trainees and then crew members for the first 6 months as well, pick up a lot of the training costs and pay for a lot of the equipment that we need to train our new flight crew, in-flight crew members who will be based in Atlantic City. We'll base either the third or fourth airplane in Atlantic City, and we've already have quite a few charters out of the Northeast are booked on that airplane using those crews. So we feel good about the -- establishing the base there. And it gives us a great presence in the Northeast at a very, very cost-effective operation. We've selected the Airbus aircraft, as you know, and we've established a strong relationships with Airbus and all of the major aircraft leasing companies. So we're working with and negotiating actively with about 20 major leasing companies for airplanes, and we've got great relationships with all of them, and we intend to put together all of the aircraft that we need for our operations over the next 3 years. We intend to tie up now, while we still have what we call pandemic pricing on aircraft. Additionally, we established our ground team joint venture with Global Aviation Services. That GlobalX ground team is now established at MIA and we'll start handling our ground operations for our aircraft as soon as we are certified. This lowers our costs and gives us greater control over our operation to give a better passenger experience and as well ensure that we operate on time and efficiently. We've been through this through a few of the webinars, but we recruited a very highly experienced leadership team. I've already talked about Ryan Goepel, our CFO; Juan Nunez, our Chief Operating Officer; Mark Salvador, our Chief Marketing Officer. But we also have gentleman such as Julio Abreu, Julio Berard, running our maintenance, very highly experienced. And now that they have gone through the certification with the aircraft and have basically drafted our manuals and have lived with those manuals over the last year, they are exceedingly good at implementing our operations because of that. Mike Hambrick, Our Director of Safety, former FAA inspector, is working on a number of programs, most centered around the safety management system, but I'll talk in a few moments about some additional certifications that we are working on, that will allow us to operate more efficiently and allow us to operate with other airlines. Widey de Armas, our Manager of Flight Training; Hector Crocker, our Chief Pilot, of course, running the Flight Operations Department, doing a great job. They're now certified to fly the A320. They've done a great job automating all of our pilot records and our pilot training, which has made us extremely efficient in our Flight Operations Department. We also have recruited what I would consider to be a real world-class Board of Directors, our Vice Chairman, Allan McArtor, former Senior Vice President of FedEx, former FAA administrator. So in the late '80s, he left FedEx for a period of time and was the head of the FAA. That's extremely helpful to us as we work with the FAA to understand regulations and policies and how things work in Washington. He's also the former Chairman of Airbus Group, North America, still maintains tremendous relationships and contacts within Airbus, which obviously is very helpful to us as we look to Airbus for support and potentially an aircraft order from Airbus for new aircraft in the near future. Joining us recently, Ms. Cordia Harrington, tremendous entrepreneur, a self-made multimillionaire working from the ground up. She's a tremendous asset on our Board. She brings a wealth of information on diversity and training programs and other human resource-type cultural activities that we need as we move forward and we grow the size of the company. She was the Founder and CEO of The Bakery Companies, which was bought out and she now runs a new company called Crown Bakeries. She's got tremendous experience having been on the Board of the Federal Reserve and some private equity firms and has a great grasp of business, but also of people, which is something that we always need. Joe DaGrosa, one of our seed investors, continues to support us on the Board. Tremendous experience in aviation, tremendous experience in financing and funding of deals and it's a great resource to us as we look at our capital structure and how we can improve it and how we will continue to raise money in the future. Deb Robinson, who came to us from the Canada Jetlines Board, has helped us tremendously on the human resources side, has reviewed our manuals and our policies on the HR side. Extremely helpful to us and a great asset for us going forward. John Quelch, currently Dean of the University of Miami Business School, former Director on easyJet. Again, we bounced a lot of ideas off of him and look to him for best practices in business because he's on the cutting edge of that being the Dean of the Business School here. Bill Shuster just joined our Board. Bill spent 20 years in Congress. He was the Head of the House Transportation and Infrastructure Committee, understands FAA issues, understands DOT issues, has spent a lot of time working with airlines during his time in Congress as well as a great resource for us in working with Washington, D.C. Ziggy Surintas, who's our Board member through the SmartLynx investment, has been extremely helpful to us as has SmartLynx in helping us look at aircraft, inspect aircraft, looking at various digital systems and software platforms that we could use here in the company that they use at SmartLynx. And is a great person for me to talk to on an almost weekly basis to trade information on charters and on aircraft and other aspects of our business. And Alan Bird, of course, another transition from the Canada Jetlines Board, former CFO at VivaAerobus, and he advises the Ryan family on all of their investments in Ryanair, and VivaAerobus and some other airlines around the world, who is also a great help to us, particularly his work on the audit committee. So what we have achieved? In flight operations and maintenance, I'll ask Juan now to step in and talk about the accomplishments over the last year.

Thank you very much, Ed, and thank you, everybody, for giving me 2 minutes to speak to you guys in a little bit more detail. What we have accomplished is -- I would like to say it's been an outstanding achievement we've done to serve by the airline in a 3-tier level, which is flag, domestic and supplemental operations, which will put us in the same level of field as American Airlines or Delta or United. We've done that with an excellent team of members on board and it's obviously, been my pleasure and honor to lead them. Like I said, a leader is only as good as the support people behind them. All certification [ tests of members ] are completed. In other words, all our manual systems, whether it's electronic or paper form, is fully functional and operational, ready for 24 hours, 7 days a week operations. All our platforms are operating at optimum levels. We've been able to test them at a high level with the maximum amount of stress by scenarios initiated by the FAA, and I'll talk to a little bit about that a little bit later. All our training for the flight attendants, pilots, dispatchers, mechanics have been approved. And now we are totally in-house, which will help -- be able to control the training, the amount of information that goes out and also most important, to be able to control costs. Like Ed said, OCC, MCC is now operational 24/7, for a 24/7 operation, 365 days a year. Our FAA cargo regulated compliance manuals is in the -- finalized. We're just waiting to get final information on the cargo airplane so we can begin the process of the certification. So it's basically on standby. We reached the agreements -- Ed will cover that more with Delta and Air France, for complete support worldwide for parts and equipment if needed. So that allow the airlines to remain completely independent and efficient for any type of operation that we'll be doing. All the manuals for the North Atlantic manuals have been approved, training will begin next month. This is a key component for us like the [ FAA quote ] to me the other day. You guys are not walking, you guys are running from the beginning, which allow us to operate in the North Atlantic and European theater for potential customers in the future and also sets the base for the ETOPS operation as we run later on in 2022. All the training for pilots, mechanics, dispatchers are all completed and are successful, and may I add, with a high rate of success in passing. And like Ed will talk about interim pool agreements with Delta, [ Willis ], and GE Aviation, is completely in place, which allow us to get engines imports needed. And no matter what time of the day or what time of the year. Thank you, Ed.

You got one more slide.

Okay. All right. So let's talk about the certification. The certification, what we did was for each element, which is flag, domestic and supplemental, flag will allow us to fly scheduled flights as a flag represented of the United States around the world. And then domestic is allow us to fly as a scheduled carrier as well as flag and domestic within the United States, Canada -- excuse me, in the United States, Alaska and the Puerto Rico. The supplementals will allow us to fly charter flights for onetime customer or multiple flights outside of our regular scheduled flights. It was required to do 150 hours of total time or 50 hours per element. Based on our manuals and our capabilities and training, the FAA initially reduced that flying to 105. It was expected to complete everything at 105. But I think through the excellent work of what everybody has accomplished, we were able to complete it in 80 hours, meaning we met all the criterias required for we still had to meet the 105 benchmark that we needed to do. As of today, we are now officially at 101 hours in 20 minutes, and we should be done by tomorrow and fully functional as an airline, which is great for us because we've been able to test our airline in all aspects for medical emergencies to diversions to mechanicals, and we'll talk a little bit about later on. And so we operated over 30 flight sectors, both domestically, international, with a great success rate with no issues at all, has operated over 9 different airports around the world, domestical and international, somewhat of a special airports, including our 2 main regional bases in Atlantic City and Punta Cana and Santo Domingo, with our -- both stations fully functional and operational. The flights for the FAA scenarios achieved a 96% rate, satisfactory rate. We had over 40 scenarios combined, some of it generated by the FAA, some of it generated by us due to maybe maintenance issue we might have had, nothing major, but the FAA feel so comfortable with our operations that they thought that we were ready to go at 80 hours like Ed said, the FAA quote "You're a fully functional, safe airline, you guys are ready to go." And I'll be able to discuss more if anybody has any questions. Thank you for your time, Ed.

Yes. Thanks, Juan. Okay. Let's move to the finance side. We did a lot over the last year. A lot of this, as you know, but I think we'd like to summarize it again. So it gives you a sense of how we have built the platform here on a financial basis. Ryan?

Yes. Thanks, Ed. So basically, where this started on the finance side is with the agreement -- the share exchange agreement with Jetlines, which was -- which came through in December of 2019. From that point forward, we did an initial raise. At that time, the market cap, I think, of Jetlines was around $3 million. If you look today, it's now over $100 million. We have filed our share registration statement with the SEC, which allow us to register shares that have been raised and to allow for future fundraising to fund growth. We are currently listed on the TSXV, and we upgraded to the OTCQB. We are working through the NASDAQ uplisting as with the share registration statement that gives us a pretty good head start. We accomplished this through 3 fundraising rounds, one in June, one in January and one most recently in April. Between that, the warrants exercised, we raised around $23 million. We've evaluated and maintained a database over 700 320 and 321 aircraft to acquire. We are currently in negotiations for a number of them. As Ed alluded to, and we'll talk about when it comes to our future delivery schedule. But again, we're scouring the world literally, for what we find as the best deal for us and the best platform for us to go forward. Speaking of which, we have leased what we call 276 and 277. We've signed LOIs with 3 more aircraft, 2 in -- as we talked about in the fall and 1 cargo in December. And to reiterate, as we've said before, since probably the beginning -- since around January, we're able to contract these at a 50% discount to pre-COVID prices and an even greater discount on the capital upfront and were acquired to onboard. In addition, we signed LOIs for over 19 321F to be delivered over the next 3 years, and we signed LOIs for financing for our hanger complex to be built out in Fort Lauderdale. How does that look? This is the slide that kind of takes your breathe away a bit. But if you think about where Jetlines was when it halted in [ December '20 ], had you bought a share that day, we have gone from that price and that market cap to -- of $3 million to approximately over $100 million today. So it's a pretty good number for a little over a year. We're excited with the progress. And I think it reflects the work that everyone has done operationally to create a viable business and a reflection of that in our share price. And that's...

Okay. So now let's move on to sales and marketing. Mark Salvador will take us through some of the highlights.

Thanks, Ed. So as we started 2021, we came into the business with hiring a very strong sales team, with very strong industry context from their previous experience and roles. And we hit the ground running with [ links ] of all the various charters in the marketplace that we're known, brokers. This is a business that we know that in the past had been outpriced due to the rising cost of charter as the market constricted in the number of available charter operators. And to date, we have signed 1,651 hours to contract in 2021, and we have 4,247 hours contracted for 2022. On top of that, we have an additional 3,632 in quoted, meaning we have quotes that are out on the market, active and viable and 1,860 hours in active viable quotes in the marketplace are flying in 2022. So we have a strong pipeline. We have a strong focus on the pipeline. And every day, we talk about what the new opportunities are in the market to continue to grow those numbers and create a very strong charter platform. One of the things that we have done to create a very strong charter platform is created GlobalX Air Tours, which is our own in-house Part 380, which is a authorization from the U.S. DOT that allows charter -- end-user charters to be able to sell individual tickets on a chartered flight. And we are offering that service to a group of charter clients that in the past, didn't have the wherewithal to get that licensing from the DOT, put up a bond to allow them to sell individual seats on a charter. A good example to this would be if there was a school or an affinity group, they wanted everybody to pay independently. We now offer them that service. So by being a GlobalX charter client, we offer them access to our Part 380 and it helps to grow that market around financial responsibility for charter. We've built out our brand identity, our marketing campaigns and our tagline, which I know that Ed and Ryan have shared with you in previous iterations, and I'll touch on shortly. And hand in hand with that, we've grown our social media following across our various platforms in the social media space. and enhanced what our web presence looks like, moving the web presence from a business case scenario to a going concern, ready-to-fly web interaction. We created marketing alliances with SmartLynx to, Ed referenced in the past, we have a connection to our Board as well as Canada Jetlines, which we are glad to say that we've spun back out to our investors. And between the 3 of those airlines, we can effectively bid pieces of business that would have been inefficient for us individually to bid and be able to partner on pieces of business that are more global and/or regional in scope. One of the things that being a very digital airline allows us to do is to create very digital experiences for our customers. So we have created what we would consider to be industry-leading customer-facing tools, one being our ClientConneX app, which is available in the app stores today. And it allows anyone who is a known customer of ours, either through the [ quote ] process or having already contracted with us one or multiple quotes to have a single point of contact for of their details, information, communication with the team and have all of the highly manual paperwork process of managing charters available in one portal for them, 24 hours a day, 7 days a week. We have a secondary version of that called Cargo ConneX, which will be joining the marketplace shortly and will be the exact same experience for those customers that join us with 321 for their operations in cargo. One of the things that we have additionally done to generate demand is to acquire a crowdsourcing travel platform called Flugy, which we are investing a lot of time and effort and funds into to launch that platform. It's a process whereby a group of like-minded individuals express an interest in going to a far-flung, hard-to-reach destinations via commercial air service, think of 2, 3, 4 stops long layovers. And once they have generated enough interest amongst themselves to be able to facilitate a flight, we charter them the flight and fly our GlobalX aircraft to these very Instagram-able, very memorable once-in-a-lifetime locations. As we talk about our onboard service, we have -- Ed's mentioned, we have a fantastic onboard crew. But one of the things that we now have the ability for them to offer to our customers is our duty-free partnership with 3Sixty Duty Free. They're a leading Duty Free company globally. Currently today, they are in front of more than 400 million passengers per year in their duty-free and duty-paid environments across airlines and shops. And they have been instrumental in helping us to determine the right products at the right time, the right markets for all of our international charter clients. A summary slide here that talks about the pipeline that I spoke about earlier. This is a summary of our revenue contracts. So you'll see that in 2021, we have $17.5 million already contracted and committed between now and December, with an additional $36 million out in what we consider to be very well-qualified leads and serious quotes. Our historical numbers to this point will tell us that about 50% of those will move to contractor negotiation. So we feel that, that is a very strong pipeline for the balance of the year, and will carry us well into 2022, where you'll see that we already have a very strong number in quoted revenue -- in contracted revenue for 2021 and an additional $16 million in quoted revenue -- sorry, quoted -- quotes in the marketplace now that we think will be firming up within the next few months. So between 2021 and 2022, it's a very good story on the revenue number and the commitments that we've made on those revenue targets. And then below, you'll see how those numbers stack by month. So you'll see July of this year, those numbers are smaller than the rest of the month because we expect to be in revenue operations in the halfway point of the month. So around the 15th of this month potentially, is the target. And those are contracts that we'll be ready to fly day 1. And then you'll see that they carry on into aircraft 2, 3, 4 and all the way through the end of December being full utilization of 4 aircraft, which makes the business case for Ryan and Ed to go get us more aircraft, more compelling and easy. On the next slide here, you'll see some of our brand identity, marketing and taglines that has been shared with you in the past. You Can't Beat the Experience lead, which is a nod to both the corporate experience in the room here and in our headquarters as well as the fantastic onboard experience provided by our flight crews. It's Time to Fly, which speaks to both our taking off as an airline, but also the intense recovery of the travel industry post-COVID as people are ready to fly and start experiencing the things and places where our aircraft can take them. Our Birds of Play, which is the taglines that we will use to describe our fleet, but also going to our warm weather fun destinations such as the Caribbean and then an internal campaign that we use for all things, human resources and then and as an employee rallying point internally within the company, which is what defines us. And then just a summary of what those things that I just told you about each of those taglines with one addition, which is our Global Presence, Local Focus, which talks to the SmartLynx and Jetlines alliance that we spoke about earlier and being able to cross sell and cross market for pieces of business that would independently have been unavailable to us. And this may be one of my favorite slides that outlines really between GlobalX covering U.S., Caribbean and Latin America; SmartLynx covering Europe and Asia; and Canada Jetlines, covering Canada that we have a much larger footprint together than we do independently, and we have a much stronger opportunity to bid for business that previously have been unavailable to us.

Okay. Thanks, Mark. So we talk about the Jetlines spinout or spinoff for a moment. As you all know, we announced the completion of that spinout just a few days ago, as we talked to the boards, it's been approved. Shares will be issued. Ryan, why don't you take us to the mechanics and administration of that?

Yes. So the shares have been approved. They will start being issued effectively the first week of July. What we will be is a reporting public company without a listing. So those shares can actually be traded until we get listed on the exchange. The plan going forward is we will be making announcements over the next weeks or so with regards to additional members of the Jetlines leadership team and to the Board and plans to go raise the funding required to get certification and a listing in place for Canada Jetlines. So we're excited about the team that's there. They have been working feverously for the last 4 or 5 months, kind of behind the scenes. We're making great progress as it relates to the manuals and the certification process, taking a lot of the learnings and benefits of what GlobalX has gone through, which should allow us to work through. We've been through the precertification phase with the CTA. They've met our leadership team, normally it's a multi-week process. It turned into a 5-minute meeting once they saw the depth of the team and they allowed us to progress. So we're excited about the news that will be coming out. There will be a lot more news coming out as it relates to Jetlines going forward.

And we should say that GlobalX will be providing a good deal of support to Jetlines as they go through their certification and get ready for launch. So as Ryan said, a lot that we learned on this side with manuals and operating systems, software systems and so forth, we're able to transfer a lot of that knowledge to Jetlines. Having said that, the team there is extremely experienced in startups and in operating airlines. And as Ryan said, the Canadian Transport Authority that would then provide minutes said, yes, you are qualified to start this airline. So we feel very good about where Jetlines is. GlobalX will be able to provide aircraft to Jetlines as they get launched. Our operating systems and software systems that Jetlines will adopt as well, which will save them a tremendous amount of money in time because of all the research that we've done on this side. So we've got -- we've created a great asset here from the assets that we acquired from Jetlines, the AOC manuals, the IP and some other assets that were acquired. The opportunity to spin that back out to shareholders I think makes us very, very proud of what we've accomplished over the last year is to take what was essentially a $0.02 trading -- almost not trading airline on the TSX, and we've created 2 airlines out of that, that will be very strong. The management teams will be working closely together, although the 2 airlines are separate, separate Boards, separate management teams. But our ability to work together and provide aircraft to each as each needs it and experience and all of the operating systems, gives Jetlines a huge layup as it gets ready to launch in Canada. So let's talk about what we're going to achieve next, and I'll take this. Let me just say that all of the things that we're going to talk about now, the ability to do things on the operating side, on the certification side, adding aircraft, building hangars, adding new aircraft types like the A230 is all a direct result of what we have done over the last year, which is to put in place a very strong and very sustainable platform here at GlobalX. In terms of our management team, our people, our crews, our operating systems, our operating control center, our maintenance control center, our manuals, our operating systems, all of that being put into place and passing a review by the FAA now allows us to build on the airline fairly quickly and take advantage of opportunities because we have such a strong base and such a strong team. So as we mentioned previously, we'll take aircraft #3 late August or early September; aircraft 4 late September, early October. First freighter aircraft now designated to be delivered in late December. We will have submitted all of our manuals. So put the A321 freighter on our certificate before that, before the delivery, the aircraft will be delivered and then we'll do proving runs and some other operational tests with the FAA in January, hoping to be able to fly the airplane for clients in February. Our pilot and flight attendant classes are now on schedule to commence just about every 30 days, in time with our growth and our delivery of aircraft. We are now fully developing the Atlantic City base, as I mentioned, and hiring the first class of flight attendants to go into training sometime in early August with great support from the State of New Jersey, who wants to see us grow this base so where we can base 3, 4, 5 airplanes in the Northeast out of Atlantic City. The 321 will be added to the certificate here shortly, as soon as we receive our operating certificate. That will be a relatively short process. We will work with the local FAA on this. The aircraft will be conformed and we will do an evacuation demonstration, just like we did on the A320. We'll do it again on the 321 because of slightly different exits and flight attendant seating positions. 321 freighter added to the certificate in December, that should be December 2021. That's a typo, I apologize for that. But that aircraft will be added to our certificate late this year. Ryan alluded to our hangar complex development. We have been initially awarded or granted a parcel of land at Fort Lauderdale Airport, where we will build a hangar that will -- that could take 3 A320s or one A330 aircraft. And we have a couple of groups that are looking to finance that for us. We have one group in particular that stepped forward. and so they will take the entire complex and develop it for us and fund it. So that's a longer-term plan. It takes about 2 years from start to finish. But the sooner we start, the sooner we will finish and we will need that hangar to do our own in-house C-checks and other heavy maintenance work on our fleet as we move forward. We are planning to add the A330 to our fleet beginning in the first quarter -- the second quarter of 2022. The A330 is available to us, great numbers, and we've got some very, very excellent deals that have been offered to us on the airplane. Our longer-term plan is to add that to the fleet as a passenger aircraft and we already have demand for 330 passenger aircraft. And then at the ETOPS, which is our ability to operate 180 minutes across the [ work ] soon after we take the A330. The longer-term plans for the 330 is to convert some of them to freighter. We have now signed an LOI and we have a conversion slot for our first A330 freighter in 2023, and we hope to move that forward a bit. But we are at least in line and have a slot and the ability to operate an A330 freighter sometime in 2023. On the certification side, there are things that we look at besides FAA certification, one of them is IOSA. And we are now in the process of doing that. We will add processes and procedures to our manuals in accordance with IOSA, which will give us -- once we go through the audit in late July, it will give us our IOSA 900 certification, which allows us to operate for other airlines. So we get a call, for instance, from Avianca to fly a flight for them. With our IOSA certification, they do not need to do any audits on us, and we can fly for them with minimal regulation or requirements to report to either the FAA or to the Avianca side to deploy with CAA. So this is a very important certification for us. We're doing it now to get it out of the way. And actually, it helps improve our manuals, helps improve our processes and procedures, and we're very excited about getting that done. Following on that, we'll be the AS9100 quality management system audit and certification, which gives us an even higher level of certification within the family of airlines that we work with so that we can interchange aircraft and cruise and processes and procedures with them very efficiently. With those 2 certifications, we expect to join IATA as a full member and also ALTA, which is the Association of Black American Airlines will join as an affiliate member. We hope and expect to work with many of those airlines, providing cargo aircraft for them, providing passenger aircraft, charters when they need additional lift or when they have a maintenance issue with one of their aircraft. So we want to become a member of ALTA and become part of that family of airlines very early on in our life, so that, that opens up more possibilities for us for cooperation, alliances and revenue work with some of those airlines. So this is our projected aircraft delivery schedule through the end of 2022. It's aggressive, but again, because of the platform that we've put in place here at GlobalX, this is very, very doable. So the first 2 aircraft are here. They're marked there in the green. That's our first aircraft, 2695, which is in -- and 276 GX and second airplane is the Magnetic -- the lease, Magnetic Leasing, which we brought here in March of this year and will be on our certificate shortly after the A320 has been certified with our 121 certificate. The third aircraft, late August, as we've discussed, we'll get final Board approval early next week and sign that lease. And then the fourth aircraft in late September, early October, again, final Board approval and then decide that lease as well next week from 2 major leasing companies that we're very happy to be doing business with. And as soon as we sign the lease, we'll announce those 2 deals, but we're very pleased to deal with both of those companies and to be working with them. We've signed the LOI for our first A321 freighter we delivered in December. The external number of the aircraft has been identified and it is about to be inducted into the MRO for conversion to freighter. So we've signed the LOI. We're waiting for the final lease to be sent to us. We're going back and forth that should be signed again within the next few days. Our next 3 aircraft after that are 321s -- excuse me, 2 321s and a 330, all of those are under negotiation right now with a long list of lessors. We're working one against the other to get the best possible deal, and we expect to be announcing those deals over the next [ 60 days ]. Then later in 2022, we've got some 321 freighters coming, 3 of them at least. So that brings us to a very, very healthy fleet size of about 10 airplanes, 10 to 12 airplanes depending upon delivery schedules by the end of 2022. We can probably accelerate that program, if needed, as our demand for our charters grow but we feel very good about being able to meet this delivery schedule and induction schedule of aircraft into GlobalX. So let's talk about what we'll do on the Investor Relations side. And Ryan, will answer...

Sure. Our first priority is to finalize our share registration statement, which we've submitted with the SEC and to get that approved. The second one is potentially looking at equity raise in October, as Mark alluded to, effectively, the 4 planes we have committed or sold. So I want him to sell more. So in order to fund that growth and acquire more planes faster, we potentially looking at likely raise in October. Finalized hangar financing once the terms and the design is complete, Eventually, one of the other aspects we're seeing is an opportunity to establish an aircraft acquisition facility as an alternative for a way of acquiring aircraft. As you can know, I can imagine there's a significant amount of opportunities out there for the airline to acquire planes at fantastic prices. And so we're looking at establishing that facility in order to expedite that process. Of course, one of our end goals is to get uplisted to NASDAQ, the timing of which and when it makes the most sense. We're in conversations with multiple banks as to what -- how to work on that. Our next major presentation will actually be at the Cowen Investor Conference in September. We did a fireside chat with Cowen in January of this year, which we're well-received. We're excited about going back to the similar audience of kind of giving an update as to how much we have achieved since that one. And also, there's been some feedback as it relates to Investor Relations reach, getting our name out there in more proactive manners. Throughout the plan, and we'll be implementing that as we always get to while upon certification. So we want to get the word out about our growth story as we are probably one of the only small cap growth stories available in transportation sector, and we think that's an important story to be told to investors.

So with that, we're very happy to have presented all that we have accomplished over the last year and show you what we intend to accomplish over the next 12 to 24 months. It's been an exciting time here at GlobalX. We're all very relieved and we're very close to completing our proving runs and getting our certificate. It's been a long year doing that. Again, Juan and his team have done an outstanding job getting us to this point. Mark and his team is ensuring that those airplanes have some places to fly once we're certified and Ryan making sure that we've got the money to do all the things that we want to do. So with that, Grant, we'll turn it back to you, and we're ready to answer any questions.

Thank you, Ed and the team. Lesson there, always make sure your collar is down before you flip yourself back on. Can you do me a favor [Technical Difficulty].

Grant, you're breaking up. We can barely hear you.

Yes. Is that better?

Yes. That's better.

Okay. I'm having some broadband issues in the office today. So I'll just move in a little closer here. If you could please just maybe move the mic closer to whoever is going to respond to the questions. We had a couple of requests because it was a little echoyi. So I'm going to start with the questions. [Operator Instructions] First one is, will the Jetline spinout be doing any capital raises in the near term that investors can participate?

Yes. The idea -- this is Ryan. The idea is to do a capital raise. And the level of participation and how we're going to do that has yet to be determined, but we'll make that well known. So yes.

Yes. And I imagine we will have a very good interest considering what you've achieved. And when I look at almost a year ago today that you first started trading after the successful USD 1.5 million, right? So a lot has been accomplished.

Yes. We should probably explain Grant, and Ryan can probably explain this better than I can. We are -- we are a public company, but not a reporting company.

Well, yes, we're -- actually, it's even -- it's a public company that's required to report our earnings. But we're not a listed company.

Not a listed company.

So We have to -- in order for the shares to trade on an exchange, you have to apply to an exchange. One aspect of that will be -- we have a lot of the criteria met. We would do a fund raise, and we've been approached by a bank to sponsor us for that uplisting. So we would do a capital raise in conjunction just exactly what we did last year in June. to get effectively Jetlines retrading after it was halted in the prior December.

And unlike a year ago, we probably won't have as many people telling us that we were crazy to be involved, start up airline in light of the pandemic. I expect the reception to be a little different this time. I think [Technical Difficulty] 330 conversion slot in '23, is there still flexibility for you to decide between the 200 or 300? Or have you decided on a variant already? I don't know about the use of the term variant these days, but...

So the question gets to -- there's 2 variants of the A330. The 200, which has longer range, but less cargo capacity than the 300, which has less range but more cargo capacity. So there are more 200s available than 300s. Some clients prefer the 300. Some clients prefer the 200. So we will end up with a mix of 200s and 300s in our fleet, so that the client if they need range, we've got the range if they need more cargo capacity, we've got more cargo capacity. The first aircraft to be converted will probably be an A330-300. But we also have lots of A330-200s that are being offered to us for conversion. So we will end up with a mix of 200s and 300s, which gives us options for our clients, and it really is a function of the deals that we are being offered now as to which one will be converted first, but probably a 300.

And I'm going to thank Ashton Smith or Smithe in advance. He says, he's a long time Canada Jetlines investor, just want to say a huge thank you. Congratulations to Ed and Ryan, on what has been accomplished in the last year. The rest of the management team, keep up the great work and look forward to the continued growth and success of Global Crossing. Thank you for that. Next one, when can we expect an uplist to NASDAQ?

When we're ready to uplist. I think the answer is, we wouldn't put a time frame on it. There's -- we're targeting sometime in the future.

Well, yes, I think to put a little bit more specificity around that. It would require another equity raise because of the asset test requirements with NASDAQ. So potentially, if we did an equity raise in the third or fourth quarter of this year, we could potentially uplist to NASDAQ. There's not much more that I could say about that because of the regulations around all of that. But we would do an equity raise and uplist at the same time. The timing of that equity raise is dependent on a lot of things. When we need the money, do we need the money, how much money we need. We certainly don't want to dilute ourselves more than necessary at this point, but we do have an aggressive and ambitious growth schedule. So we will need capital to fund all of those activities. We did file the S-1 with the SEC as an informational registration statement, it's called. Once we get through the SEC process, that gives us a huge leg up to move quickly to raise money in the public markets later this year if we wanted to. We would have to update the S-1, add some additional information, but we have a leg up in doing that. What we're always trying to do here at GlobalX is maintain maximum optionality. So we think about things that we need 1, 2, 3 years ahead of time, and we start to work on them now. In this business, time is very, very short. 3 years seems like a long time, and it really is not. So the S-1 has been filed. That will help us register everyone's shares, but it also gives us the ability to raise money very quickly and very efficiently if we decide to do that later this year.

Do you expect any problems with the DOT?

No.

That's to the point. How many aircraft will the team look to bring -- what do you expect your fleet to be in the next 3 to 5 years?

We think that -- and I think that we've talked about this in some previous webinars, right? But talking to the team here, what we can finance, what we can crew and what we can sell right? And those are the 3 pillars. We've got to finance them. We've got to operate them that we've got to sell them to clients, right? We think that in 3 to 5 years, we could be a 50-aircraft airline, somewhere 25- to 30-passenger aircraft and 25 freighter aircraft of various sizes, 321s and 330s. As sort of our goal is 50 aircraft in 5 years. It's very, very ambitious, but it's certainly very doable based on the platform that we've created.

Next one is in regards to Canada Jetlines and whether or not U.S. investors could participate in that financing?

Yes. The idea is with U.S. investors can participate in that financing. There are obviously voting caps and ownership restrictions, but we have a pretty good Canadian investor base, so there will be opportunities for U.S. investors to participate.

And again, on Canada Jetlines, the question, I'll paraphrase, but it's whether or not it will start trading right away on the venture or another market? Perhaps, Ryan with this, you could just reiterate the importance of the equity raise as was done a year ago to get Global trading same as required for Canada Jetlines.

Yes. It's a similar process where you apply to be listed on the exchange. Part of that is showing your financial -- basically your financial resources. We would do an equity offering, which is what we were discussing earlier, and that will drive the exchange. The target is the TSXV because it's a known commodity to us. And we know the process quite well. And so we will -- that's kind of when we think about the focus on the Jetline side, that's the key focus going forward to get those shares trading, and to provide the resources for that team to execute on what we think is a really strong and robust business case.

Right. This next one, I don't quite understand, but what is the back and forth communication between iAero Airways objections and Global Crossing and they refer to the government website and how does it impact FAA certification, if at all?

It does not impact FAA certification nor our final certification. So iAero, which is a charter airline, which is a -- would be -- will be a competitor of ours, asked for additional time to review our documents when the show cause order is issued. We responded to that. There is a process under which the DOT can shorten the time period for any comments or objections. Of the 37 airlines that were polled, iAero is the only one who objected to that. Again, they are major and probably only competitor as we move forward. We responded to that. We, in fact, provided iAero all of the information that they requested prior to their objection. They wanted to see more information on our percentage of U.S. shareholders and some other minor aspects of our citizenship. We showed that all to them, provided it to their lawyer, provided all of the information required, provided overwhelming evidence of our U.S. citizenship and the people who are associated with this airline but they still chose to have not removed their objection. The DOT will rule on it. If the DOT rules in their favor, it will add a couple of days to the whole process. But nothing to be concerned about. We did everything exactly as we were supposed to do according to regulation and to the law and bent over backwards to provide all of the information that they requested.

Is Jetlines still planning to be listed on the venture by the end of the year? While Ryan's address that, the exact timing of trading will be subject to the successful raise. The second part of it is the estimation still the same CAD 20 million-or-so for 60 million shares? I don't know if you can quite address that yet.

I think if you read the press release that was sent out, there's the issue of shares is 33 million, is the outstanding share count as of today before we raise any additional equity.

GlobalX can use stock ticker to be able to transfer the JET ticker to Canada Jetlines?

Yes.

Are we getting any feedback related to the ban of direct flights to South America? You had hired a firm to lobby. Just curious about the status.

Yes. That was for our Venezuelan operations. We will operate for that particular charter client by flying to Punta Cana, where they will pick up the passengers and move them to Venezuela. We don't know how long that it will take before the relationship between Venezuela and the U.S. will again allow for direct or nonstop service between the 2 countries. But we will service that market in a cooperative alliance or joint venture, if you will, and we've announced this publicly with Estelar, one of the Venezuelan airlines.

A couple of questions, which have already been asked and answered. And right now, the last question is not a question, it's from [ John Chamberlain ], great job and presentation. So thank you. I don't see anything else coming in, gentlemen. Ed, if there's any closing statement you'd like to make?

No. Grant, again, thanks for setting this up today. Thanks for all of the work of Howard Group over the last year. You've been with us since day 1 through some tough days and some not so tough days, but you hung in there with us every step of the way and believed in us and helped us get through that first raise of $1.5 million, which got us to where we are today. So our hats off to Grant and The Howard Group for all of their work. And we appreciate all of your efforts. And to all of our investors on the call, we appreciate your confidence in us, and you're investing your hard-earned dollars in our stock, and we will continue to perform for you as we go forward. So Grant, thanks again.

And thanks to all of you, and we've been hearing recently also from the folks that we introduced to the CAD 0.80 financing this past January. They're rather happy these days, let's just say. So you've done a great job, all of you. So we don't want to get this too flowery, but really looking forward to everything and being involved with Canada Jetlines as well. So to the Canadians, Happy Canada Day tomorrow and to our American friends, Happy July of 4th -- July 4, and we'll talk to you very soon. Thank you.

Great. Thanks so much . Thanks, everyone.

Thank you.