UPDATE:
Canada is losing yet another airline.
Financial Post reports Canada Jetlines Ltd. is grounding all flights and says it is temporarily ceasing airline operations, effective immediately.
The airline said it could not secure financing to continue operations and will file for creditor protection. Pax with existing bookings should contact their credit card company for refunds.
Just hours after Canada Jetlines announced that four top executives were leaving and that additional capital was needed to keep going, someone at the airline appeared to send out a memo obtained by Open Jaw.
“Hello Crew,” the memo states. “We have some difficult news to advise that we will be making an announcement that Canada Jetlines will be ceasing operations.
I know there will be many questions and concerns but the immediate issue at hand is for you to be ready to depart tomorrow. We are working on travel plans at this very time and you will be advised details as soon as we know.
Further details will be shared.”
Canadians this year already lost Lynx Air, which announced it was going out of business on 22FEB, 2024.
Losing Canada Jetlines would leave five major airlines in Canada: Air Canada, WestJet, Porter (which is expanding rapidly), Air Transat and Flair.
In a statement earlier this week, Canada Jetlines Operations Ltd. said CEO Brigitte Goersch and executive team members Ryan Goepel, Beth Horowitz and Shawn Klerer resigned.
“The continuing operations of the Company have been dependent upon the Company's ability to raise adequate financing and to grow the airline to the point where it can commence profitable operations,” Jetlines said in its release. “The Company has historically financed its future requirements through a combination of debt, equity or other facilities. As a result, the Company will need to raise additional capital to continue operations.
“The Company's board of directors and management is actively working on potential sources of additional capital. Additional details will be provided once available. At this time the airline is continuing operations.”
Jetlines earlier this year announced that then-CEO Eddy Doyle would retire as of 30JUN, 2024, after serving in the role since 2021.
Sanjay Kopalkar, director of Sales and Business Development at Canada Jetlines, announced his departure in June of this year.
Still, Jetlines was gradually expanding its offerings. It recently opened flights between YYZ and MIA.
This is a developing story.
