Plans for a new Canadian low-cost airline have been revived, with CanJet aiming to start operations this summer using Boeing 737s.

CanJet's owner, the IMP Group of Halifax, Nova Scotia, cancelled plans in February to launch the low-cost carrier from a hub in Hamilton, Ontario, citing competition from Air Canada's planned low-cost airline, and Calgary-based WestJet, which introduced services from Toronto/Hamilton last month (Flight International, 22-28 February).

The new plan calls for CanJet to fly to most major airports between St. John's, Newfoundland, and Winnipeg, Manitoba. This follows the official bankruptcy of InterCanadian, which provided feed for Canadian Airlines between Newfoundland and Ontario, after efforts to revive the airline failed.

CanJet had previously planned to operate Boeing 717s, but its new business plan calls for around 20 new Boeing 737 twinjets. The airline may also use up to eight turboprops (British Aerospace J31s and Bombardier Dash 8-100s) from the stored fleet of defunct Canadian regional airline Air Atlantic, which IMP owned.

IMP chairman Kenneth Rowe says the location of the base, or a firm start date, have not yet been decided. He believes that, with IMP having maintenance facilities at all major airports in eastern Canada, CanJet will have the lowest costs of any Canadian airline.

Source: Flight International