Bombardier's CSeries aircraft takes off for its first test flight in Mirabel, Quebec, September 16, 2013. Bombardier Inc's CSeries jetliner took flight for the first time early on Monday, the culmination of a $3.4 billion development program sho
Bombardier's CSeries aircraft takes off for its first test flight in Mirabel, Quebec, September 16, 2013. Bombardier Inc's CSeries jetliner took flight for the first time early on Monday, the culmination of a $3.4 billion development program showcasing the first all-new designed narrow-body plane in its class in decades. Reuters/Christinne Muschi

Canada Jetlines Ltd. has announced on Wednesday it has filed before the TSX Venture Exchange a preliminary prospectus to list on the bourse. The announcement came following a reverse takeover of Inovent Capital Inc, a capital pool company.

Earlier in August, David Solloway, president of Vancouver-based Canada Jetlines, said the new entrant to the Canadian aviation industry looks to focus on routes that are underserved or ignored by Air Canada and WestJet Airlines Ltd. The C$50 million ($44.5 million) that will be raised from the initial public offering will fund the new airline.

The company plans to fly point-to-point as an "ultra low-cost carrier," Solloway told the Globe and Mail. If plans push through, Canada Jetlines could be making its first flight out of Vancouver International Airport hopefully in the second quarter of 2015. Plans are also on the table to expand to the United States and Mexico.

Solloway said they will adopt the ultra-low-cost carrier model pioneered by companies Spirit Airlines in the U.S. and Ryanair in Europe. Both offer a no-frills flying experience for significantly lower fares. "You build the airline that people want to fly, not necessarily the airline that would be in your dreams," Solloway said in an interview in July.

Just how low the fares will be, he said it could be about 40 percent lower those charged by Air Canada and WestJet. Chris Murray, AltaCorp Capital analyst, cautioned the airline must be able to strike the right balance between fares and demand.

Canada is a very small market, he said, noting low-cost carriers will only be able to break even unless they fly full planes. With another ultra-low cost carrier, "how much traffic are you really going to get?" Murray posed the question. AltaCorp Capital Inc., along with Euro Pacific Canada Inc., will lead Canada Jetlines' IPO.

Earlier estimates done by the Globe and Mail showed Canada Jetlines could charge as little as $87 one-way from Vancouver to Prince Rupert in northwestern British Columbia. Air Canada's one-way base fare for the same route was about $242. Vancouver to Reginam, which costs $260 on WestJet, could cost only as little as $108 with Canada Jetlines.