Related Party Transactions

6 Months Ended

Jun. 30, 2023

Related Party Transactions [Abstract]

Related Party Transactions

11.RELATED PARTY TRANSACTIONS

On June 28, 2021, the Company completed the spin-out pursuant to the Arrangement under which the Company transferred 75% of shares of its wholly owned subsidiary, Canada Jetlines Operations Ltd. ("Jetlines") to Global shareholders. Global retained 25% of the shares issued and outstanding of Jetlines and accounts for the investment in accordance with the equity method. As of June 30, 2023, Global Crossing Airlines hold approximately 13% of the outstanding at June 30, 2023. Currently, Global continues to provide back-office support including sharing the costs of the Company’s aircraft fleet management software (TRAX).

Related parties and related party transactions impacting the consolidated financial statements not disclosed elsewhere in these consolidated financial statements are summarized below and include transactions with the following individuals or entities:

As of June 30, 2023 and December 31, 2022, amounts due to related parties include the following:

a.Global earned and was owed $268,740 and $110,177, respectively, in relation to shared TRAX services with Canada Jetlines LLC.

Other Related Party Transactions and Balances

The amounts due to related parties are unsecured, non-interest bearing and have no stated terms of repayment.

Smartlynx Airlines Malta Limited is an entity who holds approximately 4% of issued and outstanding shares. The Company made advanced payments totaling $250,000 to Smartlynx as security deposit for one passenger aircraft and it is included in deposits and other assets on the consolidated balance sheets as of June 30, 2023 and December 31, 2022.