Add another name to the long list of failed Canadian air carriers. Less than two years after a much-delayed takeoff, Canada Jetlines Operations Ltd. has grounded its planes and ceased operations.
With a fleet of just four aircraft, Jetlines flew mainly to sun destinations out of Toronto and filled in slow periods with leases and charter trips. But despite a frantic search for more capital, the company announced yesterday that it planned to file for creditor protection.
The company pursued all available financing alternatives including strategic transactions and equity and debt financings, spokeswoman Erica Dymond said in a release.
Unfortunately despite these efforts, the company has been unable to obtain the financing required to continue operations at this time.
Better days: Former Canada Jetlines CEO Eddy Doyle speaks as the carrier welcomed its first aircraft. (Photo Credit: Canada Jetlines)
Trading of the companys shares on the NEO Exchange was stopped late yesterday afternoon, in the wake of the resignation of four board members on Monday, including chairwoman and interim CEO Brigitte Goersch. Senior leaders have been departing from the company with regularity over the past several months, leading to growing uncertainty about its future.
Canada Jetlines is telling passengers with existing bookings to contact their credit card company regarding refunds. Every effort is being made to assist passengers at this time, Dymond stated.
As late as May, Jetlines was still saying that its fleet would grow to seven by the end of this year and 15 by year-end 2025. But the money wasnt there to fuel the growth that might have improved the airlines viability.
Following Jetlines demise, Flair Airlines is the only low-cost carrier left in Canada. Lynx Air shut its doors in February, and WestJets low-cost subsidiary Swoop has been absorbed into the carriers main line.
Canada Jetlines has ceased operations and will pursue creditor protection. (Photo Credit: Canada Jetlines)
Last month, Competition Bureau Canada launched a market study of domestic airline service amid passenger frustration with fares. But it is unclear how much impact the studys conclusions will have in a notoriously difficult market for low-cost alternatives to market leaders Air Canada, WestJet and Porter.
The Canada Jetlines trajectory was even more difficult than most new entrants. The company spent the years from 2013-2019 raising funds, but just when it was ready to take flight the pandemic struck, keeping it on the ground until 2022.
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