Q3 2021 Global Crossing Airlines Group Inc Earnings Call

November 30, 2021

And how we are growing that. Some finance initiatives and then a summary, but first I want to talk about where we are today because I think that's quite important and quite impressive. Given where we came from and where we have been since [inaudible]. So where we are today in terms of our certifications and permits we are a 121 domestic flag and supplemental carrier full [DOT] International Authority.

Some finance initiatives and then a summary, but first I want to talk about where we are today, because I think that's quite important quite impressive.

Given where we came from and where we have been since certification.

So where we are today in terms of our certain certifications and permits we are a 121 domestic flag and supplemental carrier full.

<unk> International Authority and <unk>.

Over the last few months, we have worked with the governments in Canada, Mexico, and Brazil, and now have full operating permits to be able to operate into those countries. Which is quite significant for us. For Canada because of our relationship with our candidate yacht lines into Mexico, and Brazil, because those are big markets [inaudible]. And other clients who need to get to those locations.

Markers.

Other clients, who need to get to those locations.

Our aircraft fleet as of today, three aircraft on our operating certificates to April [inaudible] to 21. Three aircraft will be added to the certificates in Q4 in fact, one airplane and A320 will be added later today or early tomorrow. The second of the three aircraft will be added to the certificate later this week.

$103 21, three aircraft will be added to the certificates in Q4 in fact, one airplane and <unk> hundred <unk> will be added later today or early tomorrow.

The second of the three aircraft will be added to the certificate later this week.

And a third aircraft, another A320 should be delivered to us out of paint in a few weeks and will be added to the certificate by mid-December. We also have one aircraft now for delivery by March 1st of next year. We're originally going to take delivery of that airplane are late in December. It was like coming out of the operator, Alaska Airlines, and so we pushed that two months, but that actually works well within our operating plans. We also have three air cargo aircraft now under firm lease agreements that will be delivered out of conversion all of these A320 ones next year August, October and December and we are working to try to get at least one more carrgo aircraft delivered in 2022. So let's take a look at the fleet, we often talk about these aircraft as inanimate objects actually real. They are big, they are expensive.

Another <unk> hundred 20.

Should be delivered to us out of paint in a few weeks and will be added to the certificate by mid December we also have one aircraft.

Now for delivery by March 1st of next year.

Were originally going to take delivery of that airplane are late in December it.

It was like coming out of the <unk>.

Operator, Alaska Airlines, and so we pushed that two months, but that actually works well within our operating plans. We also have three air cargo aircraft now under firm lease agreements that will be delivered out of conversion all of these <unk> hundred 20 ones next year August October and December and we are working to try to get at least one more.

Argo aircrafts.

Delivered.

In 2022, so let's take a look at the fleet, we often talk about.

Without these aircraft as inanimate objects actually real.

They are big they are expensive.

And we have a great operating team that can operate these airplanes. N276 was our first airplane delivered in January of this year, 11 months ago. That airplane is doing heavy service now for the US government and for some of our clients in the southeast. N277 or 821 was delivered in March of this year. We used it in Afghanistan, along with N276. It was placed on the certificate after returned from Afghanistan, but we went through the certification process and the evacuation demos. That airplane is now doing heavy service into Cuba and into the Caribbean. A lot of calls for it because of its size and number of seats and its cargo capacity. And we are actually looking for another A221 passenger airplane for delivery next year because of the passenger and client demand for this airplane. 27AGX is here in Miami. It is the aircraft that will be placed on the certificate later today. It has been confirmed, we're waiting for some final paperwork from the FAA. [279AGX] was delivered earlier this quarter.

First airplane delivered in January of this year 11 months ago that airplane is doing heavy service now for the U S government.

For some of our clients in the southeast and $2 seven seven or 821.

Delivered in March April.

March of this year.

We use it in Afghanistan, along with $2 76. It was placed on the certificate after returned from Afghanistan, but we went through the certification process and the evacuation demos that airplane is now doing heavy service into Cuba and into the Caribbean.

A lot of calls for it because of its size and number of seats and its cargo capacity and we are actually looking for another <unk> hundred 21 passenger airplanes for delivery next year because of the passenger and client demand for this airplane.

<unk> is here in Miami is the aircraft that will be placed on the certificate.

Later today.

It has been conformed, we're waiting for some final paperwork from the FAA to seven <unk> was delivered earlier this quarter.

It comes from Avalon, the Big leasing company better airplane, it's got a great interior and it's very popular amongst some of our clients and it's out doing a lot of heavy work right now for the government, as well as a number of football teams and other clients in the collegiate sports area. As well we have 281 in 282, 282GX now out of paint it will be flown to Miami tomorrow. It will take a few days for it to be put onto the certificates, but it is already booked for charters starting next week. So we're looking forward to bringing that airplane here tomorrow or no later than Thursday. 281 GX just been delivered to the paint facility, 282 GX was pulled out, 281 pulled in.

As well we have.

281 in 282, <unk> hundred 80, <unk> now out of paint it will be flown to Miami Tomorrow. It will take a few days for it to be put onto the certificates, but it is already booked for charters starting next week. So we're looking forward to bringing that airplane here.

Tomorrow or no later than Thursday, 280, <unk> just been delivered to the paint facility 280, <unk> pulled out to 81.

And is now being painted so that will be delivered to us in 10 to 12 days after it goes to the paint process. That 280gx will be delivered to us as I said March 1st of 2022 and 283, we're looking at a delivery sometime in April or May of 2022.

<unk> will be delivered to us as I said March 1st of 2022 and 283, we're looking at a delivery sometime in April or May of 2022. So.

That will bring us to 8 aircraft [18221, 78320s] by the summer of 2022. That is as fast as we can grow. We have to train crews we have to get it authority from the data. We have to ensure that our infrastructure in terms of people and assets is in place here at the company for the FAA to approve our expansion. We don't see any issues with that but that does take time and it does take some work for us to get ready for these additional aircrafts.

Eight.

Eight aircrafts when <unk> hundred 21, 700, <unk> hundred 20, <unk> by the summer of 2022.

That is as fast as we can grow we have to train crews we have to get it authority from the data we have to ensure that our infrastructure in terms of people and assets is in place here at the company for the FAA to approve our expansion, we don't see any issues with that but that does take time and it does take.

Some work for us to get ready for these additional aircrafts as well.

We have three cargo aircrafts, as I mentioned, [inaudible] freighters timing to us in actually August and September of 2022, and one by November or December of 2022. It all depends on the amount of conversion time required to convert those airplanes to freighter. We have a total of nine now under firm lease or LOIs for the fleet, we are about to get to more subject to board approval. We continue to work to tie up <unk> hundred 21, freighters, which we know will be a very hot commodity in the cargo market in the years to come. Our operating basis, we continue to expand those. Miami now is fully operational and we have global ex ground team our wholly-owned subsidiary. Ground handling our flights here in Miami for Santa Domingo, Cuba, and other flights that we have departing from Miami. Atlantic City, New Jersey is now a fully functioning flight attendant base. Our second flight attendant class for Atlantic City is actually here in Miami during the final weeks of training they will graduate early next week.

Actually August and September of 2022, and one by November or December of 2022, all depends on the amount of conversion time required to convert those airplanes to freighter.

We have a total of nine now under firm.

Lease or LOI for the fleet, we are about to get to more sub.

Subject to board approval, we continue to work to tie up <unk> hundred 21, freighters, which we know will be a very hot commodity and the cargo market in the years to come.

Our operating basis, we continue to excel.

Expand those Miami now is fully operational and we have global ex ground team our wholly owned subsidiary.

Ground handling our flights here in Miami for Santa Domingo, Cuba, and other flights that we have departing from Miami.

Atlantic City, New Jersey is now a fully functioning flight attendant base.

Our second flight attendant class for Atlantic City.

Is actually here in Miami during the final weeks of training they will graduate early next week.

We're already looking at positioning in aircraft there in Atlantic City, given the number of charters and the demand that we see out of the northeast. The Las Vegas space are planned for opening on January 1st our first flight attendant class will start in Las Vegas in the next few days. They will graduate just before Christmas will then have a second class starting in Las Vegas soon thereafter. We've got a base supervisor, we're starting to ramp up for operations there. We've already gotten requests for charters from some major clients with airplanes operating out of Las Vegas, starting in the first quarter. So we're very very pleased with the development of those bases and I'll talk about why we have done that in a moment. [inaudible] major maintenance complex plant in finance for make two O to reopening that continues. We have the financing in place for that. We're working on the designs and the engineering studies for that and we want to push ahead with that in early 2022. But that will give us a maintenance complex, where we can do work up to C checks and give us a home for our maintenance providers. Which is extremely important for us as we move forward and expand the size of our fleet. Team members now in the headquarters, 42 members. Pilots are at 33. We will have we have two classes starting so we will be up in the mid fours mid to high 40s in the next months 72 flight attendants amongst the three bases in our maintenance team of 26. This staffing is required for us both with the FAA and DOT at the show that we have the infrastructure in place to operate up to 8 aircrafts.

Las Vegas space are planned for opening January 1st our first flight attendant class will start in Las Vegas.

In the next few days.

Graduate just before Christmas will then have a second class starting in Las Vegas. Soon thereafter, we've got a base supervisor, we're starting to ramp up for operations. There we've already gotten requests for charters.

From some major clients with airplanes operating out of Las Vegas, starting in the first quarter. So we're very very pleased with the development of those bases and I'll talk about why we have done that in a moment.

Lauderdale major maintenance complex plant in finance for make two O to reopening that continues we have the financing in place for that we're working on the designs and the engineering studies for that and we want to push ahead with that in early 2022, but that will give us.

Maintenance complex, where we can do work up to C checks and give us a home for our maintenance providers.

Which is extremely important for us as we move forward and expand the size of our fleet.

Team members now in the headquarters 42 members pilots are at 33, we will have we have two classes. Starting so we will be up in the mid fours mid to high 40 <unk> in the next months 72 flight attendants amongst the three bases in our maintenance team of 26. This this staffing is required for us.

Both with the FAA and D O T at the show that we have the infrastructure in place.

So we have taken the decision to put those team members in place, get them trained, get them acclimated and get ready for the airplanes as they get delivered. We're well along the path and ensuring that we have the infrastructure in place for the airplanes that we have coming. As well and as you know, we spun off Canada jet lines earlier this year. GlobalX maintains a minority stake of 25% of jet lines. Approximately $5 million. We will do cross-marketing between Canada jet lines, GlobalX and in fact, we will start flying for Canada jet lines in advance of them receiving their certificate. To take advantage of the Canadian winter traffic to South Florida, starting in February, mid-February for a period of six to eight weeks. This will allow for Canada jet lines to get their name out into the Canadian market. It gets us some extra for utilization on some aircrafts and starts the complete alliance between the two airlines. As well and I just mentioned global brand team, 100% owned by GlobalX in partnership with Global Aviation Services, which provides our ground support equipment. This will continue to grow over time with Global with ground team handling other airlines as well as GlobalX. We now have established operations for ground team handling GlobalX for both Miami and Tampa.

We're well along the path and ensuring that we have the infrastructure in place for the airplanes that we have coming as.

As well as and as you know, we spun off Canada jet lines earlier this year.

Global ex maintains a minority stake of 25% of jet lines.

Approximately $5 million.

We will do cross marketing between Canada jet lines Global X and in fact, we will start flying for Canada jet lines in advance of them receiving their certificate.

Take advantage of the Canadian winter traffic to South Florida, starting in February mid February for a period of six to eight weeks. This will allow for Canada jet lines to get their name out into the Canadian market gets us some extra for utilization on some aircrafts and starts the complete alliance between the two airlines.

As well and I, just mentioned global brand team, 100% owned by.

Global X in partnership with Global Aviation services, which provides our ground support equipment. This will continue to grow over time with global with ground team handling other airlines as well as global X. We now have established operations for ground team handling global extra both Miami and Tampa.

And we are looking at expanding ground team now with some external financing to other locations around the US, both where GlobalX will fly as well as where we will not fly. So we see this as a major revenue opportunity for us to have a good ground handling operation. And that's somewhat independent of GlobalX provides all of our ground handling and will handle other airlines. As well and you may have seen our press release from today, [inaudible] is now up and running we've just signed a major partnership deal with Soho House, a major leading global hospitality brand. And we believe that <unk> will be a source of demand for charters that will be flown by GlobalX both for Soho house, which could be as many as 10 to 15 to 30 charters a year. As well as other clients in that space and as well what [inaudible] does which is to create a crowdsource demand for charter travel. We will be looking to bring in outside investors now that we have proven the concept. And this will be a major asset for the company as we move forward.

Two two other locations around the U S, both where global actual fly as well as where we will not fly. So we see this as a major revenue opportunity for us to have a good ground handling operation.

And that's somewhat independent of global Excellence provides all of our ground handling and will handle other airlines as.

As well and you may have seen our press release from today.

<unk> has is now up and running we've just signed a major partnership deal with Soho House major leading global hospitality brand.

And we believe that <unk> will be a source.

<unk> demand for charters that will be flown by global X both for <unk>.

So whole house, which could be as many as 10 to 15 to 30 charters a year.

As well as other clients in that space and as well what flu does which is too.

Create a crowdsource demand for charter travel.

We will be looking to bring in outside investors now that we have proven the concept.

And this will be a major asset for the company as we move forward.

Let me talk a little bit about our goals and objectives for this quarter. We're in the midst of completing a very extensive budget process for 2022. We set our cost reduction goals now as we are up and running and we are approaching some scale with up to six aircrafts operating. So we are reducing consultants and other outside advisors, we are trimming where we can where we're getting the airline ready to fly. We've also established a quarterly review process and that will be ongoing through the year. Also in Q4 as I previously stated we will receive conform in place we ate through twenty's onto our certificate that will actually be done by December 15th.

We're in the midst of completing a very extensive budget process for 2022, we set our cost reduction goals now as we are up and running and we are approaching some scale with up to six aircraft operating.

So we are reducing consultants and other outside advisors, we are trimming, where we can where we're getting the airline ready to fly.

We've also established a quarterly review process and that will be ongoing through the year.

Also in Q4.

<unk> previously stated we will receive conform in place we ate through twenty's onto our certificate that will actually be done by December 15th.

Our first two airplanes of the three, as I mentioned, will be done within the next few days. We're also working to finish the complete [IT] integration across the company to eliminate all the paper. We're about 90% of the way there. We're going to finish this in Q4. Everything in this company is now digitized and we've got a few final tests that we have to automate now, but that'll be done by the end of this quarter.

We're also working to finish the complete integration across the company to eliminate all the paper.

We're about 90%.

The way there we're going to finish this in Q4.

Everything in this company is now digitized and we've got a few final test that we have to automate now, but that'll be done by the end of this quarter.

We're also reviewing every vendor, maintenance IT crew training all across the company now and we're starting to renegotiate with vendors as they see that we are viable, we have cash in the bank, we have airplanes and we are a survivor. So now we can go back to each one of those vendors and start to renegotiate and cut the costs where we can. We are continuing to expand our broker outreach the charter broker community and all of our relationships. We had a very successful IMAX conference in Las Vegas, and I'll talk about brokers in a moment when we get to some of our revenue slides.

Cash in the bank, we have airplanes and we are a survivor. So now we can go back to each one of those vendors and start to renegotiate and cut costs, where we can.

Continuing to expand our broker outreach the charter broker community and all of our relationships. We had a very successful IMAX conference in Las Vegas, and I'll talk about brokers in a moment when we get to some of our revenue.

Slides.

We're also preparing to receive [a smart links] aircrafts to supplement our winter flying this as part of our alliance with SmartLynx. SmartLynx has been a great partner of ours, they own about 8% of our GlobalX. We need one of their aircrafts to supplement our flying. To back up some of our clients. And this is the start of an eight-year exchange process with SmartLynx where we will send airplanes to them in the summer and they will set of airplanes to us in the winter, it's very counter cyclical between the two airlines and it's a very comprehensive cohesive plan we have with them to exchange aircrafts. And we're in the midst of completing our first deploy performance review. Many of our managers have never been through this.

<unk> has been a great partner of ours, they own about 8%.

Our global X, we need one of their aircrafts to supplement our flying.

The back up some of our clients.

And this is the start of an eight year exchange process with smart links where we will send airplanes to them in the summer and they will set of airplanes to us in the winter, it's very counter cyclical between the two airlines and it's a very comprehensive cohesive plan, we have with them to exchange aircrafts.

And we're in the midst of completing our first deploy performance review.

Many of our managers have never been through this.

We're teaching them how to do it and mentoring them and we're putting in place a full performance review for all of our team members. In the first quarter of 2022, we have a number of objectives. One of the primary ones, there's an uplifting to NASDAQ, which Ryan will speak about in a few moments. On the passenger side, we want to make sure we have a seamless operation with SmartLynx to develop and enhance our eight-year deal. We want to fully opened at our crew bases in Atlantic City, and Las Vegas, and have both pilots and flight attendants. Headquartered or domiciled in those spaces, and we will take delivery of another A320 as I mentioned around March 1st from DEA, a major lessor, who provided us our first aircraft. On the cargo side, we will oversee the induction of two of the first A320 ones for conversion. In January the first one will be could start its conversion at Heiko a major engineering firm and the second one will start in February in San Antonio, Texas with FC Engineering, We're looking very forward to seeing those two airplanes start the conversion process. We will also start the certification process with the FAA and we are not targeted with them.

And the first quarter of 2022, we have a number.

A objectives.

One of the primary ones, there's an uplifting to NASDAQ, which Ryan will speak about in a few moments on the.

Singer side, we want to make sure we have a seamless operation with smart links to develop and enhance our eight year deal. We want to fully opened at our crew bases in Atlantic City, and Las Vegas, and have both pilots and flight attendants.

Headquartered or domiciled in those spaces, and we will take delivery of another April 'twenty as I mentioned around March 1st from D. E. A major lessor, who provided us our first aircraft on the cargo side, we will oversee the induction of two two of the first <unk> hundred 20 ones for conversion.

In January the first one will be could start its conversion that heiko a major.

Engineering firm and the second one will start in February in San Antonio, Texas with FC Engineering, We're looking we're looking very forward to seeing those two airplanes start the conversion process. We will also start the certification process with the FAA and we are not targeted with them.

And their team that's been assigned to us to do this with our first submission of manuals on or about the mid part of January. That's our target date to get our first submission. This is so that we will be ready through the process for the first aircraft, first freighter to be delivered to us in August. So we can start the proving runs with that airplane.

Through the process for the first aircraft first freighter to be delivered to us in August.

So we can start the proving runs without airplane.

Okay.

Let me talk a little bit about why we have free basis, why we put them where we put them. What are the one of the advantages of having several basis is that we can more effectively compete for charter activity of charter quotes, charter proposals and actual charters. If we can have airplanes spread throughout the US at bases where we can limit the amount of first time required to get to a client. So we, of course, started in Miami with our main base, we've now opened up Atlantic City, where we can quickly and efficiently move aircraft to charters in the northeast and Midwest. And now we're opening Las Vegas, where we can effectively compete for California West Coast charters. All up through the ski areas and so forth. So if you draw a three-hour range a circle from each of those bases as you can see that we cover all of the Americas down to the Northern part of South America.

Why do we have free basis, why we put them, where we put them.

What are the one of the advantages of having.

Several basis is that we can more effectively compete for charter activity of charter quotes charter proposals in an actual charters.

If we can have airplanes spread throughout the U S at bases, where we can limit the amount of first time required to get to a client.

So we of course started in Miami with our main base, we've now opened up Atlantic City, where.

Where we can quickly and efficiently move aircraft to charters in the northeast and Midwest and now we're opening Las Vegas, where we can effectively compete.

Ford, California West Coast charters.

All up through the ski areas and so forth. So if you draw a three hour range a circle from each of those base as you can see that we cover.

All of the Americas are down.

Down to us.

Northern part of South America.

We can efficiently move aircraft and have aircraft available for charter clients within a very short very time period, which is critical for us as we compete for charters. We talked about our alliance, both with Canada jet lines and with SmartLynx. We call this our global presence, local-focused campaign with the three tails with. With SmartLynx as I've mentioned, we will receive an aircraft from SmartLynx early next year that they will operate for us on some routes that we have already determined with clients. They will also provide backup aircraft for us. So that we can more tightly schedule our own fleet. We will also provide A320s to smartly starting next summer. And we're cooperating on A321 freighter. So we are exchanging information and data. SmartLynx is educating us on their operation of the A321 freighter to date. They currently operating two and they will get to more freighters very soon. So that cooperation is very helpful to us, particularly as we negotiated our deals on the freighters. Their input and their advice was critical for us to get very very efficient deals done with the lessors.

We talked about our alliance, both with Canada jet lines and with Smart links we call. This our global presence local focused campaign.

With the three tails with.

With smart links as I've mentioned, we will.

Received an aircraft from smart links early next year that they will operate for us on some routes that we have already determined with clients. They will also provide backup aircraft for us.

So that we can more tightly schedule our own fleet.

We will also provide <unk> hundred twenty's to smartly starting next summer.

And we're cooperating on <unk> hundred 21 freighter. So we are exchanging information and data smart links is educating us on their operation of the <unk> hundred 21 freighter to date. They currently operating two and they will get to more freighters very soon so that cooperation is very helpful to us, particularly as we negotiated our deals.

On on the freighters their input and their advice was critical for us to get very very efficient deals done with the lessors.

Our jet lines Alliance is also very very important to us. We own a major stake in Canada jet lines. We will start flying a Toronto, Miami Fort Lauderdale pattern for them starting in hopefully February maybe a little later in February. But this will give them eight weeks of exposure with their name and brand in the market and get us additional flying. We're also providing technical assistance to them for their aircraft acquisitions, and we're helping them. They're working with our clients Havana air to potentially launch Toronto to Cuba flights with their own aircraft. So both of these alliances are very very important to us. It broadens our scope and our presence and we're not talking to several smaller South American Airlines in an effort to expand in this alliance to include aircraft that we can access in the South American market.

We will start flying a Toronto, Miami Fort Lauderdale pattern for them.

And hopefully February maybe a little later in February but this will give them eight weeks of exposure with their name and brand in the market and get US additional flying we're also providing technical assistance to them for their aircraft acquisitions, and we're helping them theyre working with our clients Havana air to potentially launch.

Toronto to Cuba flights with their own aircraft. So both of these alliances are very very important to us.

It broadens, our scope and our presence and we're not talking to several smaller South American Airlines.

In an effort to expand in this alliance to include aircraft that we can access in the South American market.

We've also strengthened the management team through this quarter. So our intent is to continue to supplement and augment our management team as our operation gets larger and more complex. [inaudible] has joined us. He works for Ryan Goepel in the finance shop, Jeff comes to us after many years at Atlas Air. Atlas's one of our comps, an airline that we frankly look up to look to see how they operate they operate wide-body aircraft, but they are very much in the operating mode that we are in and so we've learned a lot through Jeff on our finance systems, and how we do accounting for charters in and other areas of our business. And so he is leading the current budgeting process and the quarterly review processes and as well working with our sales and marketing team.

So our intent to continue to supplement and augment our management team as our operation gets larger and more complex.

Pdf's unique has joined us.

He works for Ryan Goepel in the finance shop, Jeff comes to US after many years at Atlas Air Atlas's, one of our comps.

At airline that we frankly look up to.

Look to see how they operate they operate wide body aircraft, but they are very much in the operating mode that we are in and so we've learned a lot through Jeff.

<unk> on our finance systems, and how we do accounting for charters in and other areas of our business and so he is leading the current budgeting process and the quarterly review processes and as well working with our sales and marketing team.

As they develop charter contracts to make sure that we're covering everything we should be covering in our contracts, as Atlas Air does. [inaudible] has joined us as VP of maintenance and one of our 119. The gentleman who had occupied that position is now retired. Very successfully through the certification. We were sorry to see him go but it. He did a great service for us. We were able to replace them with Marcus who has got tremendous experience with a number of airlines including Atlas <unk>. A number of airlines that operate the eighth through A320. Comes very highly recommended from the FAA. They are very happy to see him here with us as well and as Kevin Beitzel, who joined us as our chief Inspector. Kevin has many years of inspection and experience, which is critical in this role, heavy maintenance inspection experience at MROs. Inducting aircraft into our fleet and as well as returning aircraft to lessors. Kevin comes to us from Frontier, which operates the A320, he knows the A320 inside and out and is a tremendous asset to our team.

Markets like has joined us as VP of maintenance and one of our 119.

The gentleman, who had occupied that position is now retired.

Very successfully through the certification we were sorry to see him go but it.

He did a great service for us.

We were able to replace them with Marcus who has got tremendous experience.

With a number of airlines are putting Atlas <unk>.

A number of airlines that operate the eighth through 'twenty.

Comes very highly recommended from the FAA. They are very happy to see him here with us as well and as Kevin Beitzel, who joined us as our chief Inspector.

Kevin has many years of inspection and experience, which is critical in this role heavy maintenance inspection experience at <unk>.

Inducting aircraft into our fleet and as well as returning aircraft to lessors.

Kevin comes to Us from Frontier, which operates the <unk> hundred 20, he knows the <unk> hundred 20 inside and out and has a tremendous asset to our team.

As well as we expand our operations in our stations, in our ground ups and also in flight, we're bringing in [inaudible] the best CEO. She has extensive experience having done on the startup teams at Virgin America, Jetblue and [Bruce] recently, where she ran station operations as well as in flight. She has also had a major VP role at major airlines are putting Emirates and Hawaiian. So we are very fortunate to have her come onboard with us to help strengthen our ground ops team and help by the in-flight side of our operations. As we look at our fleet plan were often asked, how many airplanes do you think you can get to? As part of our goals and objectives. We're looking now at 25, the passenger aircraft 25cargo or freighter aircrafts by the year-end 2025. So 50 aircraft total. We are on path to do that. We are continuing to see good deals for aircrafts.

She has extensive experience having done on the startup teams at Virgin America.

Jetblue.

And Bruce recently, where she ran station operations as well as in flight.

She has also had a major <unk> its a major airlines are putting Emirates and Hawaiian.

So we are very fortunate to have her come onboard with us to help strengthen our ground ops team and helped by the in flight side of our operations.

As we look at our fleet plan were often asked how many airplanes do you think you can get to as part of our goals and objectives. We're looking now at 25, the passenger aircraft twenty-five cargo or freighter aircrafts by the year end 2025 50 aircraft total.

We are on path to do that we are continuing to see good deals for aircrafts.

As a result of the pandemic, we are moving fast to lineup those aircrafts because that situation will eventually change. But we are focused on the 320, the 321. Again, Covid has created a unique opportunity for us to line up these aircraft and we're working very hard to line up the 2022 fleet as well as 2023. In 2022, we would like to take as many as five additional passenger aircraft in addition to the three freighter aircraft that we will take. We can take more aircraft we will. Because the deals are there, the aircraft are there we have to make sure that we've got the clients to fill those airplanes. And that we've got the infrastructure in place here in terms of just pilot recruitment and other infrastructure that we need to support that growth. But this is our goal, 50 aircraft by year-end 2025, we bought the 25 25 25 plant and we think it's realistic and it gives us the opportunistic growth that we need. A couple of other initiatives these are still in board review as well as some other initiatives, but this gives you an example of the types of things that we are looking at now to continue to reduce our costs and increase our margins. And we're looking to purchase our own flight training devices. The level five device that we will replace in the Airbus facility here in Miami.

Again, Covid has created a unique opportunity for us to line up these aircrafts and we're working very hard to line up the 2022 fleet as well as 2023.

2022, we would like to take as many as five additional passenger aircraft.

In addition to the three freighter aircraft that will take.

We can take more aircraft we will.

Because the deals are there the aircraft are there we have to make sure that we've got the clients.

To fill those airplanes and that we've got the infrastructure in place here in terms of just pilot recruitment and other infrastructure that we need to support that growth.

But this is our goal 50 aircraft by year end 2025, we bought the $25 $25 25 plant and we think it's realistic and it gives us the opportunistic growth that we need.

A couple of other initiatives these are still in.

In Board review as well as some other initiatives, but this gives you. An example of the types of things. We are looking at now to continue to reduce our costs.

And increase our margins and we're looking to purchase our own flight training devices. The level five device that we will replace in the Airbus facility here in Miami.

It does a number of things for us. It saves us money in terms of crude time, we can operate the level five sim for about 40% of the hours. That we now use the full flight simulator for. It also gives us probably more importantly flexibility in scheduling. So this device obviously, we would own it and the scheduling of that device is completely in our control. Right now we are a bit at the mercy of the training facilities here in Miami. And their ability to provide a simulator time. We want to move away from that as much as we can. And control our own destiny when it comes to training. As well, we're working with [inaudible] which is a major major MRO facility with worldwide operations. We're very close to their management. They have been very supportive of us. We are now working on a plan to buy some airframe, A320 airframes that can be torn down their parts and components are put on the shelf and in some cases, they may need to be repaired, but given the cost of airframes.

That we now use the full flight simulator for it also gives us probably more importantly flexibility in scheduling. So this this device obviously, we would own it and the scheduling of that device is completely in our control right now we are a bit at the.

Mercy of the training facilities here in Miami.

And their ability to provide a simulator time.

We want to move away from that as much as we can.

And control our own destiny when it comes to training.

As well, we're working with <unk>, which is a major major MRO facility with worldwide operations, we're very close to their management they have been very supportive of us.

Now working on a plan to be.

By some.

Airframe <unk> hundred 20 airframes that can be torn down their parts and components put on the shelf and some cases, they may need to be repaired, but given the cost of airframes.

We think that there is a big arbitrage between what we can buy for and what we can put on the shelf and what we could eventually sell some of these parts, those parts that we don't need. And so it's really a cash neutral type of situation, particularly since <[inaudible] will finance the entire deal from acquisition of the aircraft frame to stripping it down preparing components. And doing all the other activities around that. So we are starting now to look at creative ways for us to reduce our costs, increase the control of our operation by having our own parts, our own name base gets here at NIH as well as their own flight training devices. So that we can control our own destiny when it comes to flight training. Turning it over to Ryan. He'll take us through the next slides right in reference to our block hours available for sale.

And so it's.

It's really a cash neutral type of situations, particularly since <unk> will finance.

The entire.

Tired deal from acquisition of the aircraft frame to stripping it down preparing components.

And doing all the other activities around that so we are starting now to look at creative ways for us.

To reduce our costs increase.

Increase the control of our operation by having our own parts or own name base gets here.

NIH as well as their own flight training devices. So that we can control our own destiny when it comes to flight training.

Turning it over to Ryan I'll take us through the next slides right in reference to our block hours available for sale.

Our primary constraints as it relates to revenue related to how many aircraft we have to sell. As you can see in August September we effectively have one aircraft in August and 1.90 aircraft available in September as we disclosed at around 370 hours of flying in Q3 with those with that aircraft, generating about $3.1 million in revenue.

We did highlight in the Q3 result a loss of $5 million that over 60% of that can be attributed to before we started flying and also related to the ramp-up as we were adding planes in Q3 and Q4. I'm looking forward to Q4 as announced in our press release. Approximately 270% increase in our capacity profile, which again has been our primary constraint as it relates to revenue growth. W see that growing not only in Q3 Q4 but also in Q1. Some of the customers more funds for. I'll talk you through some of this, can understand the breadth and depth of the clients that were flying.

Approximately 270% increase in our capacity profile, which again has been our primary constraint as it relates to revenue growth.

See that growing not only in Q3 Q4, but also in Q1.

Some of the customers more funds for.

I'll talk you through some of this.

<unk> can understand the breadth and depth of the.

Clients that were flying.

We have a large portfolio now of collegiate sports clients that we're flying. Both for football and now into basketball and baseball. In fact, we have one hole are aircraft that will be dedicated with Wi-Fi to that market starting in January of this year. On the tour and travel side, we've talked about or have been in operation or Cuba operation with Nevada Air. Which is the largest [inaudible] approved tour operator in the US. Where we're currently operating at. 10 flights for them, we started with eight we're now 10 by. 10 flights for them, we started with eight we're now 10 by mid December we should be at 12% to 14 flights per week. And in January and February that should ramp up. Even more so. We're only flying to Havana, right now from Miami and Tampa. The other cities in Cuba open up those include Campbell way Santa Clara. Santiago and so forth.

Large portfolio now of collegiate sports clients that were fine.

For football and now into basketball and baseball in fact, we have one hole are aircraft that will be dedicated.

With Wi Fi to that market starting in January of this year.

The tour and travel side, we've talked about or have been in operation or Cuba operation with Nevada Air.

Which is the largest <unk> approved tour operator in the U S where we're currently operating at.

10 flights for them, we started with eight we're now 10 by.

By mid December we should be at 12% to 14 flights per week.

And in January and February that should ramp up.

Even more so.

We're only flying to Havana, right now from Miami and Tampa.

The other cities in Cuba open up those include Campbell way Santa Clara.

Santiago and so forth.

We will fly those for Havana Air. And we expect to eventually get to as many as 44 flights per week for Miami, and Tampa, and perhaps one or two other US gateway cities to Cuba. 44 flights per week to Cuba, the main cities in Cuba. We are also flying in a joint venture with Turkey, airlines to serve the Venezuelan market over at Santa Domingo. And we started a major program with our colleague [Caliente] casino operating on the West Coast as we put more put one airplane and then a second airplane into Las Vegas. That particular joint venture will expand. We also are in discussions with all of the casino operators not only in Las Vegas, but Atlantic City in Mississippi, and so forth, and we expect we will get a fairly good amount of business out of all of the casinos and that portfolio will go will build over time.

Gateway cities to Cuba, 44 flights per week.

Two to Cuba, the main cities in Cuba.

Also fly in a joint venture with Turkey, All airlines to serve the Venezuelan market over at Santa Domingo.

And we started a major program with our colleague <unk> casino operator on the West Coast as we put more put one airplane and then a second airplane into Las Vegas.

That particular joint venture will expand.

We also are in discussions with all of the casino operators not only in Las Vegas, but Atlantic City in Mississippi, and so courts, and we expect we will get a.

Fairly good amount of business out of all of the casinos and that portfolio will go will build over time.

On the government side, we have done a number of flights for NASA. Going into French Guiana, where they are preparing to launch what will be the replacement for the Hubble telescope. We're flying another flight for them in the next week or so and we see that relationship with NASA expanding over time. They're a very good client. We performed very very well for them. And as well we work with the department of Homeland Security to provide them aircraft and seats that they need for their various activities. I've mentioned the broker community, which is very very important to Eric. Eric charter or charter airline side of the business. We work with all of the major ones now ACC, Charter service Chapman, Freeborn, which is a subsidiary or affiliate of smart links and their conglomerate. Their charter Service Hudson Palmer. Private Jets services, which we're now in the midst of negotiating a major expanded contract with them. Sports and entertainment travel and some others, so they've been a source of a great deal of business for us. They provide a lot of potential deal flow for us, we performed well for them.

Going into French Guiana, where they are preparing to launch what will be the replacement for the Hubble telescope.

We're flying another flight for them in the next week or so and we see that relationship with NASA expanding over time, there theyre very good client.

We performed very very well for them.

And as well we work with the department of Homeland Security.

To provide them aircraft and seats that they need for their various activities I've mentioned, the broker community, which is very very important to the Eric.

Eric charter or charter airline side of the business, we work with all of the major ones now ACC err.

Charter service Chapman, Freeborn, which is a subsidiary or affiliate of smart links and their conglomerate.

Service Hudson Palmer.

Private Jets services, which we're now in the midst of negotiating a major.

Expanded contract with them sports and entertainment travel and.

Some others, so they've been a source of a great deal of business for us they provide a lot of.

Potential deal flow for us, we performed well for them.

And we will continue to expand our relationship with all of them as we move forward. I mentioned Havana Air, very very important client of ours. As I've said, we operate a 6 AM departure every morning for them to Havana from Miami. And we will continue to build that relationship with additional flights. And again, we expect to get to as many as 44 flights per week with them or by the summer of 2022. We talked a little bit about [fluky] in Soho House. We think that this is a prime example of the marketing creativity we have here at GlobalX to expand what is the natural charter market so that we bring in more clients and more opportunities for flying. So [inaudible] was presented to us as a concept.

As we move forward.

Mentioned Havana are very very important.

<unk> client of ours.

As I've said, we operate.

A six am departure every morning for them to Havana from Miami.

And we will continue to build that relationship with additional flights.

And again, we expect to get to as many as many as 44 flights per week with them or by summer of 2022.

Okay.

We talked a little bit about fluky in Soho House.

We think that this is a prime example of the.

Marketing creativity, we have here at global X to expand what is the.

The natural charter market, so that we bring in more clients and more opportunities for flying so flooding was presented to us as a concept.

We grabbed onto it. We expanded it. We put some development hours into their software. We have then been working with some local marketing experts. We're able to get a deal done with Soho House, which is a major worldwide luxury brand. With Soho House will be doing the first flight in January, major promotion with Soho House of GlobalX and [inaudible] at our puzzle and for a number of events between now and the first flight. And we see this relationship expanding such that we will do a number of charters for Soho house of the year to all of their other properties and as well and this will attract more clients such as Soho house to <unk>. We're now looking to bring in external capital to now grow and expand [inaudible] with this proof of concept. So this is an example of how we're looking outside the box to expand the potential market for our charter aircraft into new markets with new partners in co-branding with well-established travel brands that add to our credibility as we move this airline forward.

We put some development hours into their software.

We then I've been working with some local marketing.

Experts.

We're able to get a deal done with Soho House, which is a major worldwide luxury brand.

With Soho House will be doing the first flight in January.

Ager promotion with Soho House of global <unk> and flu B at our puzzle and for a number of events between now and the first flight and we see this relationship expanding.

Such that we will do a number of charters for Soho house of the year to all of their other properties and as well and this will attract more clients such as Soho house to <unk>.

We're now looking to bringing in external capital.

<unk> and expand flu b.

With this proof of concept. So this is example of how we're looking outside the box to expand.

Potential market for our charter aircraft.

<unk> into new markets with new partners in co branding with well established travel brands that adds to our credibility.

As we as we move this airline forward.

Yeah.

Talked a little bit about the cargo business. Again this is a major piece of our business going forward. It gives us the diversity of revenue streams. And because our pilots can operate both types of airplanes in A320, passenger airplane A321 freighter aircraft.

It gives us diversity of revenue streams.

And because our pilots can operate both types of airplanes in <unk> hundred 20 passenger airplane <unk> hundred 21 freighter aircraft.

It gives us a great amount of flexibility. It allows us to deploy our assets, our human assets over all of our fixed assets, which is a major advantage for us as we look to reduce costs. So, as I mentioned before, our certification will start in January we hope and expect to be flying proving runs by late August, September.

September.

Then into a major contract with some of the, more of the large packaged carriers sometime late in 2022. Again, we expect and hope to get to 25 of these aircrafts. It is a phenomenal aircraft. It stacks up very well against the competition. And we've seen Lufthansa recently decided to go with A321 freighter. It is one of their fleet standards and so we know we've made the right decision focusing our efforts on this particular cargo aircraft.

A major contract with some of the more of the large packaged carriers sometime late in 2022.

Again, we expect and hope to get to 25 of these aircrafts.

It is a it is a phenomenal aircraft it stacks up very well against the competition.

And we've seen Lufthansa recently decided to go with a 321 freighter.

One of their fleet standards and so we know we've made the right decision.

Focusing our efforts on this particular cargo aircraft.

I'll ask Ryan to talk about our [S1] process. Our [S1] process, which is the vote on whether the greater part of the year. We filed a public version of the [S1] on November 22nd. Including Q3 financial statements and an updated business section. This is our seventh version of the filing. Many people have asked why are we filing an S1 what is that, what is the registration statement. [Carmel] crossing against COVID domesticated from DC to Delaware in January of this year became required under SEC regulations to file a registration statement. This registration payment, we believe will accelerate any additional ethylene do you want to do as part of an uplifting in the next year.

Including Q3 financial statements and updated business section. This is our seventh version of the filing.

Many people have asked why are we filing an S. One what is the what does the registration statement.

Carmel crossing against Covid domesticated from D. C to Delaware in January of this year became required under FTC regulations to file a registration statement.

Registration payment, we believe will accelerate any additional ethylene do you want to do as part of an uplifting in the next year.

Also has the impact of registering all the shares issued in offering in June, January and May of 2021. So in the end what the S1 we believe does, it brings us greater access to US capital markets. It's required by the SEC and also is required by Canadian regulators will allow us to file in just gap versus having to file our financial statements about cap and our FRS. So it's a key step as part of our evolution and we hope to have that done in the next couple of weeks.

Our financial statements about cap.

F R S selling for key staff as part of our evolution and we hope to have that done on that in the next couple of weeks.

And I think the most important point there is, this will help us facilitate to an uplift to Nasdaq. It's required by regulations and we are fully reporting company and we should be in full compliance with SEC regulations. This S1 does that. It's an excellently drafted statement. And we will get great use of this going forward. And it gives our vendors, our aircraft lessors, Airbus and others that we do business with gives them a great deal of comfort that we have taken this step.

This will help us facilitate to an uplift to Nasdaq.

It's required by regulations and we are we are fully reporting company and we should be in.

In full compliance with FCC regulations. This S. One does that.

It's an excellent.

Excellently drafted statement.

And we will get great use of this going forward.

And it gives our vendors our aircraft lessors.

Airbus and others that we do business with gives them a great deal of comfort that we have taken this step.

So in summary. Let's talk about this. Really quickly. We are constantly compared to the jet index, which is which covers all of the major airlines. We believe we are a differentiated product from that. Our risk profile is significantly different keep in mind, we don't take fuel risks. We don't think distribution risks, we do hope on charters. We believe our cost structure significantly improved having we are operating with little to know our arms. And equity finance and we acquired all of our assets post-Covid. Having that said, we've seen since November there has been a downtick in the major airlines' footprint, which we've outperformed where we believe we can continue to outperform the index as a whole.

Let's talk about this real quickly.

We are constantly compare it to the jet.

Index, which is which covers all of the major airlines. We believe we are differentiated product from that our risk profile significantly different keep in mind, we don't take fuel risks. We don't think distribution risks, we do hope on charters, we believe our cost structure significantly improved having we are operating with little to know our arms.

And equity finance and we acquired all of our assets post Covid, having fiber seen November there has been a downtick in the major airlines footprint, which we've outperformed where we believe we can continue to outperform.

Yes. This chart was provided to us by ITG, our market maker, they've done an excellent job for us. Everyone knows we've got somewhat low volumes. We are in a major Investor Outreach program now, which Brian can talk about. We are trying to get out to talk to as many potential investors as we can. And uplifting to NASDAQ will facilitate the ability of institutional investors to invest in our stock, which we believe that we need. We also know that we've got a somewhat of a complex stock structure with the class As and the class Bs that were required because of the foreign ownership restrictions we believe. But that will mitigate itself over time.

Everyone knows we've got somewhat low volumes.

We are in a major.

Investor Outreach program, now, which Brian can talk about we are trying to get out to talk to as many potential investors as we can.

And uplifting to NASDAQ will facilitate the ability of institutional investors to invest in our stock, which we believe that we need.

We also know that we've got a somewhat of a complex.

Stock structure with the class A's and the class fees that were required because of the.

Foreign ownership restrictions we believe.

But that will mitigate itself over time.

And potentially the class B shares can go away. Until then it's a more difficult story to tell because it's not as clean as structure as we would like. We are working to change that. So again, we've got a major Investor Relations outreach through Howard group through some firms here in the US and others to get this story out. As we scale and add more aircraft, we believe that that's this story will be more widely spread. And as particularly as we get through the last vestiges of this pandemic if that's possible. There'll be more focused on our ability to grow in the post-pandemic market with cheap airplanes. And clients who are lined up to work with us.

So again, we've got a major.

Investor Relations outreach.

Through Howard group through some firms here in the U S and others to get this story out as we scale and add more aircrafts.

We believe that that's the story will be a more widely spread.

And as particularly as we get through the last vestiges of this pandemic if that's possible.

There'll be more focused on our ability to grow.

In the post pandemic market with cheap airplanes.

And clients, who are lined up to work with us.

So in summary, we are a resilient and diverse business model, both passenger and eventually, cargo are the two main components of our model. We're getting assets acquired at post-Covid prices, which is still a major advantage. Probably 40% of what we would have paid for these assets pre-COVID-19. And we see this condition or environment pricing environment continuing for at least the next 12 to 18 months, which is why we're moving so quickly to tie up airplanes.

We are a resilient and diverse business model, both passenger and eventually cargo.

Are the two main components of our <unk>.

Our model.

We're getting assets acquired at post Covid prices, which is still a major advantage.

Probably 40% of what we would have paid for these assets pre COVID-19.

And we see this condition.

Or environment pricing environment, continuing for at least the next 12 to 18 months, which is why we're moving so quickly to tie up airplanes.

As Ryan mentioned, we're 100% equity finance to date, we have no debt. And we're well-positioned we believe for the high growth that we will see as all of these sectors rebound post-pandemic. So we think we've built an excellent foundation and platform here. We're working with some of the top aircraft leasing companies, lessors, all of whom want to work with us. We are, we've got in our registration statements filed and we are ready for a very robust 2022. Which will see us increase in size, probably double in size by the end of 2022. So with that, Brad, I'll turn it back to you and you can do some questions.

And we're well positioned we believe for.

For the high growth that we will see as all of these sectors rebound.

Pandemic. So we think we've built an excellent foundation and platform here.

We're working with some of the top aircraft leasing companies lessors, all of whom want to work with us.

We are we've got in our registration statements filed and we are ready for a very robust 2022.

Which will see us increase in size, probably double in size by the end of end of 2022. So.

With that Brad I'll turn it back to you and you can.

We just do some questions.

Right. And Ryan, that was excellent that was, I mean, what 40 minutes thoughtful of information. We have some questions that have come in already and I'll get to those. One is from Rob asked in fact for two questions. What is your current daily load capacity? And how much of that is currently booked daily? For, part of what we have to be careful of a selective disclosure. And so we have disclosed how much capacity, we do have we can't really make a comment on revenue per see given where we are in a process that's one.

And Ryan.

Excellent that was.

I mean, what 40 minutes thoughtful of information.

We have some questions that have come in already and I'll get to those.

One is from Rob asked in fact for two questions.

What is your current daily load capacity.

And how much of that is currently booked daily.

So.

Hum.

For part of what we have to be careful of a selective disclosure.

We have disclosed how much how much capacity, we do have we can't really make a comment on on revenue per se.

are in a process that's one.

I think people, maybe you can take a bit of a hit from that one chart towards the end of the presentation in terms of your available aircraft and where the trajectory of the hour-long are going. Then extrapolate with all of the aircraft that are coming on next year. Yeah, that's hours available for sale. That's a key distinction. The towers available for sale. So basically we have three aircraft now. And depending upon the client and how its schedule, we could get anywhere from.

On chart towards the end of the presentation in terms of your.

Available aircraft and.

Where the trajectory of the hour long are going.

Then extrapolate with all of the aircraft that are coming on next year.

Yeah, that's hours available for sale.

Hum.

That's a key distinction.

With our towers available for sale. So basically we have three aircraft now.

And depending upon the client and how its schedule, we could get anywhere from.

Our objective is 130 to 150 hours per month per aircraft. So our objective every day is anywhere from 3 to 5 hours of revenue flying per day per aircraft, that's our objective. And as each airplane comes on, we're able to increase the number of hours that are available because we have more optionality in terms of scheduling aircrafts. You have to be very cautious in terms of how you guide. I appreciate that.

Three to five hours of revenue flying per day per aircraft, that's our objective.

And as each airplane comes on.

We're able to we're able to increase the number of hours that are available because we have more optionality in terms of scheduling aircrafts.

Hum.

Yeah.

You have to be very cautious in terms of how you guide alright pre hedge to replicate that.

Our next question. Which of the recently announced AOCs have received final currently have ongoing flights? Mexico, Canada. So yes, we've s for Canada, we have filed for applying for Canada jet lines. For Mexico, we have a client who has asked us to start daily flights to a city in Mexico, which we're working on now. In Brazil, we have put that in place because we have a number of clients who need to get to Brazil. Some soccer teams in both directions. As well as some tour groups.

Mexico, Canada.

So yes, we've so far.

For Canada, we have filed for applying for Canada jet lines.

For Mexico, we have a client who has asked us to start daily flights to a city and Mexico, which we're working on now.

In Brazil, we have put that in place because we have a number of clients.

Who need to get to need to get to Brazil, Some soccer teams.

In both directions.

As well as some tour groups.

[inaudible] anonymous as you have spoken about this in part, as has Ryan. How many new shareholders has the company gained over the past quarter? Stock volume as more pricing law, what is the company proactively doing to improve this in just a little cost [inaudible]. Greg, you broke up on the last part. [inaudible]

Anonymous AD you have spoken about this in part has Ryan.

How many new shareholders.

Has the company gained over the past quarter.

Stock volume as more pricing law, what is the company proactively doing to improve this in just a little cost.

Excellent.

Grant you broke up on the last part of the company called Saudi Country Airlines, which added Ryan are very very similar.

Yeah.

I will try, we'll try and address. I think what we saw you want to accomplish do you want to strike. Greg, I'm not sure if you can hear us. Your picture is frozen and we can't hear we couldn't hear the last part of your question. So let me see if I could take the pieces of that and I don't think you can hear me because your picture is frozen. Yes, we do look closely at.

Greg I'm not sure if you can hear us your your.

A picture is frozen and we can't hear we couldn't hear the last part of your <unk>.

Question.

Cfe.

Sure.

Okay.

And can we.

Yeah. So so let me see if I could take the pieces of that and grant I don't think you can hear me because your pictures frozen.

Yes, we do look closely at.

Recently.

Okay.

We do look very closely at Sun country. I can't tell you how many new investors we have. We talked to a lot of the investors who have been with us almost since the beginning. Some from the first round some from the second round and then the third round. And what we have found talking to them is that I guess I can say this all of them have said that they're not sellers. They will hold onto the stock they see the long term potential.

Almost since the beginning some.

Some from the first round some from the second round and then the third round.

And what we have found talking to them is that I guess I can say this all of them have said that theyre not sellers.

They will hold onto the stock they see the the long term potential.

And so we're seeing small volumes because there are essentially no sellers. I don't know if you want to expand on that. I think one of the struggles we had was many are not selling. So when there is some selling and we're working to find buyers to match, I think this is a constant evolution as people who have been with us since the beginning of the process. Some of us who certification. I think a lot of investors, where we're betting on whether we get certified or not. And we did it run their betting whether we can get planes or not. I think we've done it and then the next question is can you fill the planes.

I don't know if you want to expand on that yeah. I think one of the one of the struggles startup of habit is not running our selling oh.

So when there is when there is some selling and we're working to find buyers to match I think this is a constant evolution as people who have been with us since the beginning of the process. Some of US who certification I think a lot of investors, where we're betting on whether we get certified or not and we did it run their betting whether we can get planes or not I think we've done it and then the next question is can you tell us.

I think we're demonstrating we're able to do that. And so we're continually expanding our story, expanding our audience and now that we're on revenue service, I think we can attract a much broader investor base. With a different risk tolerance. So it is a transition process and we're sticking on. I think you can probably do 20 or 30 calls a week. And constantly telling our story and we have various investors at different stages of the due diligence process and we're encouraged with coming backwards. [Where do you find now my back?]

Within the rest of <unk>. So it is a transition process.

Second half I think you can probably do 20 or 30 calls a week.

And constantly telling our story and we have various investors at different stages of.

The due diligence process and we're encouraged with coming backwards.

Where do you find now my back.

Okay.

I think I had a power bumps so apologies for that. But what I was saying about the country Airlines because I followed that closely as a peer comparison, even though it's much larger and been around for many years. We have to keep everything in context. Go back a couple of weeks, but your country at about a $2 billion market cap. And it was closing in on $35 a share. I looked at it earlier this morning, and it was barely holding about $26 I don't know what it's done lately, it's wiped off $500 million in market cap, so everything is relative especially in the current environment.

We have to keep everything in context.

Go back a couple of weeks, but your country at about a $2 billion market cap. It was closing in on $35 a share.

Looked at it earlier this morning, and it was barely holding about $26 I don't know what its done lately, it's wiped off.

$500 million in market cap, so everything is relative especially in the current environment.

Yeah, I think that's true. I'm not sure if you heard a lot of our responses to that. And to repeat ourselves, what we've found talking to our investors who came in in the first round, second round third round, but they're not sellers. So very little volume there is very few shares out there for sale.

Responses to that.

Two.

And to repeat ourselves what we've found talking to our investors who came in in the first round second round third round, but theyre not sellers.

So very little volume there is very few shares.

Out there for sale.

So in that sort of environment, which are market makers says is a very bullish indication obviously, we've got people who want to hold onto our shares. When there is a price movement, it's typically down because someone needs to sell and it sells at a under market. Not much we can do about that. All we can do is perform and show people we can perform as Ryan said, we got certified we have airplanes on the certificate, we have airplanes coming. And we will continue to grow and perform. And the market will eventually understand that story.

When there is a price movement, it's typically down because someone needs to sell in.

It sells at a.

Under under market.

Not much we can do about that Oh, we can do is perform and show people. We can perform as Ryan said, we got certified we have airplanes on the certificate, we have airplanes coming.

And we will continue to grow and perform. And the market will eventually understand that story.

And the market will eventually understand that story.

Great excellent, will you have to do a reverse split to list on Nasdaq. We don't know. The idea of what we're gonna do with NASDAQ will determine when we're going out to NASDAQ. Yeah, a little more expanded obviously, we could do a reverse split and list on NASDAQ. We would prefer not to do that. We would prefer to do further price to appreciate the [work]. Yeah.

We don't know.

The idea of what we're gonna do with NASDAQ will determine when we're going out to market.

Yeah, a little more expanded obviously, we could do a reverse split and listed on NASDAQ.

We would prefer not to do that.

We would prefer to do.

Further price to appreciate the work yeah.

Yeah, yeah exactly. We would prefer to appreciate to what its current valuation in our opinion should be. And then continued to raise money based on that and doing uplifts. Perfect, Rob, after again, how is cash flow? I've seen some news regarding the selling of shares last warrants to raise funds. I'm not sure where this win approximately is. I suppose that means when approximately you're raising capital can retail shareholders gain accidents?

We would prefer to appreciate to what its current valuation in our opinion should be.

And then continued to raise money based on that and doing uplifts.

Perfect Rob after again, how is cash flow I've seen some news regarding the selling of shares last warrants to raise funds.

<unk>.

I'm not sure where this win approximately.

I suppose that means when approximately you're raising capital can retail shareholders gain accidents.

Well, we haven't announced any plans to sell shares and warrants. We believe our cash flow is strong we have a strong balance sheet, we have cash on the balance sheet, we had $8.9 million on the balance at the end of Q3. I think retailer shareholders gaining access. The shares are available for sale every day. Plenty of access we'd like to think but again there's been no news or announcements as to selling our shares and warrants. And that's not to say as we grow and add airplanes. And add infrastructure and all of the things that we need to grow that we would not raise more money in the future, I think everyone understood that you can't get to 50 airplanes on the current capital base.

We believe our cash flow is strong we have a strong balance sheet, we have cash on the balance sheet, we had $8.

$90 million on the balance at the end of Q3, I think retailer shareholders gaining access the shares are available for sale every.

Every day.

Plenty of access we'd like to think but again theres been no news or announcements as to selling our shares and warrants.

And that's not to say as we grow.

And Ed airplanes.

And add infrastructure and all of the things that we need to grow that we would not raise more money in the future I think everyone understood that you can't get to 50 airplanes on.

On the current capital base.

And so a combination of current cash flow from operations as well as some combination of equity and debt offerings in the future will be needed to get us to 50 airplanes. And that should not be a surprise to anyone. I think one important item that a lot of people continue to miss or forget is that you're not, you don't have an unencumbered balance sheet journey, great shape compared to other operations. Next one. Once uplifted to NASDAQ will be get become one stock. Ideally, the reason we have a Jack <unk> is the DNC regulations as it relates to the number of foreign shares by non-US citizens and we've seen a lot of influx of US investors over the past 12 months. That ratio gets better every day, if we can get to the point, where we are in compliance with DOT without a jet D, we would make that change.

Some combination of equity and debt offerings in the future will be needed to get us to 50 airplanes and that should not be a surprise to anyone.

I think.

One important item that a lot of people continue to mess or forget is that you're not.

You know you don't have unencumbered balance sheet journey, great shape compared to other operations.

<unk>.

Next one oh wife's uplifted to NASDAQ will be get become one stock.

With ideally the reason we have a Jack <unk> is the DNC regulations as it relates to the number of foreign all shares.

Non non U S citizens and we've seen a lot of influx of U S. Investors over the past 12 months that ratio gets better every day, if we can get to the point, where we are in compliance with D. O T without a jet D. We would make that change.

And that's certainly our intention to do so. It's a cumbersome structure. OIt was required to meet the current DOT regulations for a new airline, especially one that has publicly traded which they very rarely see. Well, we think the class B shares will go away over time. And it won't be a long term process to do that. Once the DOT is comfortable with us that we've got the safeguards in place to ensure that we know how many foreign shareholders we have, how many US shareholders we have. And we can monitor that. It will be much much less of an issue for them and we should be able to eliminate the class Bs.

To meet the current D O T regulations for a.

A new airline, especially one that has publicly traded which they very rarely see.

Well, we think the class B shares will go away over time.

And it won't it won't be a long term process.

To do that once the dose is comfortable with us that we've got the.

Safeguards in place to ensure that we know how many foreign shareholders. We have how many U S shareholders we have.

And we can monitor that.

It will be much much less of an issue for them and we should be able to eliminate.

Eliminate the class BS.

And I'm going to bypass because it's in regards to the share price. In context of everything that you've achieved but you've already addressed that, we'll move on. Gary Kaiser, a delicate one what can you tell us about projected earnings in the fourth quarter? Nothing. Gary and everybody else, please understand the delicate issue right now. As was the draft in regard to the [S1.] This one's anonymous. Same theme what are the Q4 and Q1 earnings forecast, you can't go there. Not brushing it off but you don't want to get in trouble. It's that simple.

In context of everything that you've achieved but you've already addressed that we'll move on.

Gary Kaiser a delicate one what can you tell us about projected earnings in the fourth quarter.

Nothing.

Gary and everybody else. Please understand delicate issue right now.

As was the draft in regard to the S. One.

This long term monogamous.

Same theme what are the Q4 and Q1 earnings forecast you can't go there.

Brushing it off but you don't want to get in trouble its that simple.

[Dave Kelly] any thoughts of a bargain [inaudible] in the future? I don't quite understand that one. No. Absolutely not. If I even thought of that the board should throw me out the window. So. [Mctavish], given the current situation is that a fair assumption that we will not be making a drawdown from the GEM equity agreements going forward? And then sorry before you add to that the next question is also about [GEM]. Will GlobalX still have access to the GEM financing during the current lawsuits?

No.

Absolutely not.

If I even thought of that the board should throw me out the window. So.

Okay Mctavish given the current situation is that a fair assumption that we will not be making a drawdown from the gym equity agreements going forward.

And then sorry before you add to that the next question is also about Jim will global access access to the gem financing during the current lots David.

Also, can you expand on the suggestion that GEM has [inaudible] to manipulate the share price? Well, it's a matter in litigation, it's a commercial dispute. And so there's not much that we can say about that. Well, let me say that we can adequately, more than adequately finance our operations going forward without the gem facility. So there should be no concern on any shareholders part or investors part that GEM is absolutely critical to this operation it is not. It would be nice to have that facility because if it was functioning properly and in accordance with in our view the agreements.

Fair pricing.

Ah well, where it's a it's a matter in litigation, it's a commercial dispute.

And so there's not much that we can say about that.

Well, let me say that we can adequately more than adequately finance our operations going forward.

without the gem facility. So there should be no concern on any shareholders part or investors part that GEM is absolutely critical to this operation it is not. It would be nice to have that facility because if it was functioning properly and in accordance with in our view the agreements.

Where investors part that Jim is absolutely critical to this operation it is not.

It would be nice to have that facility because if it was functioning properly and in accordance with in our view the agreements.

It is a very efficient way for us to generate cash quickly if we need to make aircraft deposits or acquire assets or four or whatever the intended purpose is. It's a very efficient process. It's less of a discount then we would have if we did a major offering or a private placement. And in the beginning, it actually worked well. We would like them to adhere to the agreement as we would adhere to the agreement. And there is a possibility we think that that relationship could be put back on a good track. And so we'll go through that process with them.

Quickly, if we need to make aircraft deposits or acquire assets or four or whatever the intended purposes.

It's a very efficient process.

Less of a discount then we would we would have if we did a major offering or.

Or a <unk>.

Private placements.

And in the beginning it actually worked well.

We would like them to.

Adhere to the agreement as we would adhere to the agreement and there is a possibility we think that that relationship could be put back on.

On a good track.

And so we'll go through that process with them.

And hopefully, come out with a better agreement on the other side of that, that we both can work with and live with. And that will be helpful to us. But having said that again, we do not need the GEM facility to finance the growth and operations of this business. It would be nice to have. If we don't have it, we are experienced enough and have enough scale here at this airline that we are able to finance our operations going forward. Other thoughts of other aircraft types in the future and then also from anonymous 319 question mark. We've looked at 319s. The 320 gives us maximum optionality with clients because of the number of seats it has. The 319 gives you a smaller number of seats, but not necessarily a lower operating cost per plane mile between the 319 and the 320.

That we both can can work with and live with.

And that will be helpful to us.

But having said that again, we do not need the gem facility.

To finance the growth and operations of this business it would be nice to have.

If we don't have it.

We are experienced enough.

And and have enough scale here at this airline that we are able to finance our operations going forward.

None of it the other thoughts of other aircraft type in the future and then also from anonymous.

319 question Mark.

We've looked at 319.

The 320 gives us maximum optionality with clients because of the number of seats. It has.

The 319 gives you.

A smaller number of seats, but not necessarily a lower operating cost per plane mile between the $3 19 in the 320 <unk>.

Just like Jetblue never acquired any 319, their analysis was the 320 does everything that a 319 does for about the same price, but it gives you more seats. That is our analysis as well. That doesn't mean that if a 319 deal comes along with very very favorable lease rates for us, that we would not take a very hard look at it. We've looked at a lot of 319 deals. And we may get one in the future. Right now, no. Other aircraft types, we will stay Airbus. There's a possibility in the future that we would upsize two a 330. We've talked about this in the past so that's not a surprise.

Just like Jetblue never acquired any $3 19. Their analysis was the $3 20 does everything that a $3 19 does for about the same price, but it gives you more seats.

That is our analysis as well that doesn't mean that if a $3 19 deal comes along with with very very favorable lease rates for us that we would not take a very hard look at it we've looked at a lot of 319 deals.

And we may get one in the future. Right now, no. Other aircraft types, we will stay Airbus. There's a possibility in the future that we would upsize two a 330. We've talked about this in the past so that's not a surprise.

Other aircraft types, we will stay Airbus.

There's a possibility in the future.

We would upsize two a 330.

We've talked about this in the past so that's not a surprise.

Our pilots can fly both airplanes. So they can be types of certificated on both airplanes and be able to fly both said that it could fly an A320 into Miami get off that airplane to get onto an A330, and fly that airplane to Los Angeles. That gives us a huge advantage. Major airlines can't do that because of their union rules, but we could do that. 330 is a very interesting airplane for us just basically a large A321, and we've had a number of the brokers approach us and ask us how soon we could put in A330 on the certificate because there's plenty of client demand for that. Now we are focused completely on the A320, A321. And getting the A321 freighter on the certificate.

Interesting airplane for us just basically a large a $3 21, and we've had a number of the brokers approach us and ask us how soon we could put in a $3 30 on the certificate because theres plenty of client demand for that right. Now we are focused completely on the <unk> hundred 20, <unk> hundred 21.

And getting the <unk> hundred 21 freighter on the certificate.

We're focused on getting to scale with the A320. Getting to profitability. And to grow that fleet and then we will pick our heads up from our work and we will look at other aircraft types to add to the certificate. A330 and in fact, the next question is do you have any updates on your plans for potential A330 P to Fs versions? I think you've addressed that. Excellent. Are the flights from Toronto schedule ticket sales or charter flight from a major client?

Getting to profitability.

And to grow that fleet and then we will pick our heads up.

From our work and we will look at other aircraft types to add to the certificate.

Yeah.

<unk> 30 and in fact, the next question is do you have any updates on your plans for potential 80 330 P to Fs versions I think you've addressed that.

Yeah.

Oh.

Excellent.

The flight III Toronto schedule ticket sales for charter flight from a major client.

Well, from a Global Crossing standpoint, we will be chartering flights from Canada jet line. They'll be selling their tickets directly through their Canada Jet lines vacations subsidiary directly to customers. So our client is Canada jet lines? And then Canada [inaudible]. They have a kind of a tremendous sales and marketing group. It has a lot of experience doing this. And as we've said a couple of times around the headquarters here, if you cannot sell seats from Toronto to Miami in the dead of winter. You're probably in the wrong business. Going back to Jet B shares going away once DOT a satisfied with US ownership. Will they be converted to jet shares unless our capital appreciation for jet B holders?

Canada jump on vacations subsidiary directly to customers.

So although our client is Canada jet lines and on Canada, deadlines will be simultaneous sort of vacation.

They have a kind of jealous is a tremendous sales and marketing group.

It has a lot of experience doing this.

And as a as we've said a couple of times around the headquarters here, if you cannot sell seats from Toronto to Miami and the dead of winter.

And the wrong business.

Going back to J b shares going away wife's D O T a satisfied with U S ownership.

Will they be converted to jet shares unless our capital appreciation for jet B holders.

Well again, we've discussed this in the past, JET B shares can be exchanged for JET B on a one to one basis. That would be the expectation. If they were to go away, they would be converted to JET share. And if the JET shares are trading at a higher price, then yes, that would be a capital appreciation. But investors can apply to have their JET B shares converted to JET today, and if we had any. A number of people have done it. We don't necessarily see it.

Shares are trading at a higher price unless that would be a capital appreciation.

But but investors can apply to have their jetbead shares converted to Jeff today, and if we had any.

Number of people talent, and where people have done it powerful robotics, especially Oh, we don't necessarily see it.

We think there. If you're travelling effectively at the same price. But again the idea would be to punish the JET B shareholders. If we were to get rid of the JET Bthat'd be converted one for one. Go past this one, another question about earnings forecast, which we can't touch. Jerry Kaiser, in regard to the GEM litigation, can you elaborate a bit more on the lawsuit?

If you're travelling effectively at the same price.

But again the idea would be to punish the jetblue shareholders. If we were to get rid of the Japanese that'd be converted one for one.

Okay.

Go past this one another question about earnings forecast, which we can't touch.

Jerry Kaiser in regard to the <unk>.

Jim Litigation can you elaborate a bit more on the lawsuit.

Well, it's part of the public record, we want them to adhere to the agreements. They believe that they adhere to the agreement. It's a matter of public record that there is a period of time when the shares are priced. And there are restrictions around selling during that time period, we believe that they did not adhere completely to the both the letter and the spirit of the agreement.

It's a matter of public record that what there is a period of time when the shares are priced.

And there are restrictions around selling during that time period, we believe that.

They did not adhere completely to the.

both the letter and the spirit of the agreement.

So we wanted to have a conversation with them. We had to provide a commitment fee to them from the original agreement that we said we will we are prepared to pay that as soon as we can meet with GEM and ensure the process going forward is in compliance with the agreements as we see it. They disputed that and they. Instead of a first wanted to talk with us and ask for arbitration, we accepted arbitration and then they decided they didn't want arbitration. They wanted to bring a lawsuit, which we thought was odd. Because we were ready to sit down and work out all the issues and move forward and continue to use the facility. We would love to have this facility in place for the next couple of years and to be able to draw as we need it. If we need it. To complement and supplement our other equity raising activities.

To provide a commitment fee to them.

The original agreement that we said we will we are prepared to pay that as soon as we can meet with Jim and ensure the process going forward isn't it isn't.

Compliance with the agreements as we see it.

They dispute that and they are.

Instead of a first wanted to talk with us and ask for arbitration, we accepted arbitration and then they decided they didn't want arbitration. They wanted to bring a lawsuit, which we thought was odd.

Because we were ready to sit down and work out all the issues and move forward and continue to use the facility. We would love to have this facility in place.

For the next couple of years to be able to draw as we as we need it.

If we need it.

To complement and supplement.

Our other equity raising activities.

So I am hopeful that we will come to a resolution with them. But I needed to be sure since I am fiduciary responsible for this company. But they adhere to the agreement and the way that we believe the agreement was structured. And I am satisfied with that. We will settle with them and we will move forward. So we are doing what we are required to do as a public company to protect the interests and the capital of our shareholders.

But I needed to be sure since I am fiduciary responsible for this company but.

But they adhere to the agreement and the way that we believe the agreement was structured.

And what I am satisfied with that we will settle with them and we will move forward.

So we.

We are doing what we are required to do as a public company to protect the interests and the capital of our shareholders.

And the last one. No time frame for NASDAQ question mark or whatever the timeframe addressed in the presentation, but the process would start in Q1 of '22. With that add Ryan, thank you. Any closing comments? No, again, Greg. Thank you so much for hosting this webinar today. We find that the most effective way to get our story out to people. So we'll be looking to do this maybe not once a month, but at least once a quarter.

No time frame for NASDAQ question, Mark or whatever the timeframe addressed in the presentation, but the process.

Start.

Q1 of 'twenty, two with that add Ryan. Thank you any closing comments.

No again, great. Thank you so much for.

this webinar today. We find that the most effective way to get our story out to people. So we'll be looking to do this maybe not once a month, but at least once a quarter.

Through your good offices. And we appreciate everybody's support. I will tell you that the team here is working very very hard to go from two airplanes to six airplanes in four months is quite an achievement. Particularly, in the environment that we're in today. So my hats are off to the management team. As well as our pilot core and our flight attendant groups, who are manning these airplanes. And we again believe we are very well positioned for 2022. As we get through some of these other issues get our S1 deemed effective by the SEC. Get some of the additional airplanes on the certificate.

And we do.

We appreciate everybody's support.

I will tell you that the team here is working very very hard to go from two airplanes to.

To six airplanes and four months is quite an achievement.

Particularly in the environment that we're in today.

So.

My hats are off to the management team.

As our pilot core in our flight attendant groups, who are Manning these airplanes.

And we again believe we are very well positioned for 2022.

As we get through some of these other issues get our S. One.

Deemed effective by the SEC.

Get some of the additional airplanes on the certificate.

We will be well-positioned to take advantage of 2022. So again, thanks, everyone for your support of our stock. Support of our story. We will be continuing to be in touch with all of you. And thanks again, Greg. Thanks to all those who attended. Much appreciated. Thank you. Thank you.

To take advantage of 2022, so again, thanks, everyone for your support of our stock.

Support of our story.

We will be continuing to be in touch with all of you and thanks again grant.

Thanks to all those who attended <unk>.

Brian much appreciate it.

Thank you. Thank you.

Q3 2021 Global Crossing Airlines Group Inc Earnings Call

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