Canada Jetlines will temporarily cease operations and file for creditor protection, three days after four senior executives, including the company’s new CEO, resigned from their positions.
The Ontario-based carrier has halted flights with immediate effect after failing to secure a fresh injection of capital. The airline’s suspension comes six months after fellow Canadian operator Lynx Air halted operations, citing financial pressure in a competitive market.
“The company, overseen by an independent board committee and advised by external advisors, pursued all available financing alternatives including strategic transactions, and equity and debt financings,” a statement from Jetlines says. “Unfortunately, despite these efforts, the company has been unable to obtain the financing required to continue operations at this time.”
The statement adds that Jetlines intends to file for creditor protection and advises passengers with existing bookings to contact their credit card company to secure refunds.
Jetlines commenced operations nearly two years ago after several false starts. The carrier’s inaugural service launched in September 2022 with a route connecting Toronto Pearson International Airport (YYZ) and Calgary. The airline later opened several scheduled leisure routes from YYZ, as well as carrying out charter and ACMI operations using a fleet of three Airbus A320 aircraft.
In May, the airline announced that Eddy Doyle was retiring as CEO at the end of June to be succeeded by chairman Brigitte Goersch. Jetlines also closed a non-convertible term loan agreement for C$2 million ($1.5 million) with an unnamed third-party corporation.
However, on Aug. 12 the company announced that Goersch—along with executives Ryan Goepel, Beth Horowitz and Shawn Klerer—had resigned from the board. A statement at the time said the business was seeking to raise additional capital to continue operations.
The grounding comes after Calgary-based Lynx Air suspended flights in February, blaming “rising operating costs, high fuel prices, increasing airport charges and a difficult economic and regulatory environment” for the decision. The airline operated 10 domestic routes across Canada, as well as routes to Mexico and the U.S.
In July, Canada’s Competition Bureau launched a study to examine what is driving the competition issues in the domestic airline industry. The study aims to look at the barriers to entry and expansion.
“We know many Canadians are frustrated by the cost and quality of the service being provided domestically,” Commissioner of Competition Matthew Boswell said. “Our goal with this market study is to examine the current state of competition in Canada’s airline sector and to determine what can be done to improve it.”
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