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Home » Law In Travel » Why Is A Canadian Start Up Airline Suing Jet Blue Founder?
JetlinesLaw In Travel

Why Is A Canadian Start Up Airline Suing Jet Blue Founder?

Matthew Klint Posted onNovember 25, 2019November 14, 2023 1 Comment

an airplane flying in the sky

A Canadian start-up airline is suing JetBlue founder David Neeleman, claiming he negatively interfered with their venture capital funding then gloated about it.

Vancouver-based Canada Jetlines Ltd. wants to offer Ryanair or EasyJet style ultra-low-cost service in Canada. Although founded in 2013, it has yet to take off the ground. Unlike Spirit and Frontier in the USA, which compete on a head-on basis at major legacy airline hubs, Jetlines plans to operate from secondary airports that have low fees and are ripe for growth. I wrote about Jetlines here. Obviously, the airline never took off in 2018…

> Read More: Jetlines – Canada’s New Ultra-Low-Cost Airline

A lack of funding is the primary reason Jetlines has not taken off. Last year, an investment bank told Jetlines it needed to hire a high-profile industry figure if it wanted to secure funding. Jetlines hired Lukas Johnson, the former Chief Commercial Officer of Allegiant, another ultra-low-cost carrier in the USA.

But less than six weeks later, Johnson was poached from Jetlines by Neeleman, who wanted him to work for his new start-up Moxy.

> Read More: Coming Soon: Moxy Airways?

The tortuous interference lawsuit, filed in Connecticut where Moxy is incorporated and Neeleman lives, claims Neeleman called the investment bank “to gloat” over having snagged Johnson. Specifically, the lawsuit alleges Neeleman’s intent “was to derail Jetlines’ relationship with the Bank and thereby to delay and hinder Jetlines from obtaining new financing and commencing operations as a Canadian ULCC. In that, he succeeded.”

Without a high-profile figure at the helm, Jetlines has yet to secure its funding. Neeleman has ridiculed the lawsuit, claiming he did not interfere and does not plan to operate Moxy in Canada.

I have no idea what they’re talking about.

It’s probably just a fishing expedition to get some money. I have no interest in going to Canada.

CONCLUSION

Having read the complaint, I see this lawsuit the way Neeleman does. What would be the motive in sinking Jetlines? Certainly Neeleman has a motive in hiring the best and brightest to run Moxy, but poaching someone from another company happens all the time. I find it far-fetched to believe that Neeleman would gloat to a bank about hurting Jetlines. Any penalties for concealing talks with Neeleman in violation of his fiduciary duties with Jetlines fall upon Johnson, not Neeleman or Moxy.

You can read the complaint here. It’s an interesting read and a great reminder not to engage in personal matters or other business on your work laptop…

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About Author

Matthew Klint

Matthew is an avid traveler who calls Los Angeles home. Each year he travels more than 200,000 miles by air and has visited more than 135 countries. Working both in the aviation industry and as a travel consultant, Matthew has been featured in major media outlets around the world and uses his Live and Let's Fly blog to share the latest news in the airline industry, commentary on frequent flyer programs, and detailed reports of his worldwide travel.

1 Comment

  1. Hunter Reply
    November 25, 2019 at 11:32 pm

    Couldn’t an argument be made that while he has no interest in taking Moxy to Canada there are other obvious benefits? Namely delaying the entry to the market of a competitor to WestJet specifically it’s struggling Swoop unit? Seems within the realm of possibility…

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