Canada Jetlines Ceases Operations and Seeks Creditor Protection
Canada Jetlines has announced the suspension of all flights and plans to file for creditor protection following the resignation of four senior executives, including the new CEO. The Ontario-based airline halted operations immediately due to an inability to secure necessary funding.
The decision comes six months after Lynx Air, another Canadian carrier, also suspended flights due to financial pressures. Jetlines’ suspension highlights the challenging conditions in the competitive aviation market.
The operational pause coincides with the return of three of its four A320-200 aircraft, which had been wet-leased to Air Arabia Maroc and Corendon Dutch Airlines. These aircraft are making their way back to Canada, as per ADS-B data. The fourth aircraft remains parked in Fes Saïss. These aircraft are owned by various leasing companies including CCB Financial Leasing and Jackson Square Aviation.
A statement from Jetlines explained that despite efforts to secure financing through various channels, including strategic and debt transactions, the airline was unable to obtain the needed capital. Passengers with existing bookings are advised to contact their credit card companies for refunds.
Jetlines launched its services in September 2022 with routes between Toronto Pearson International Airport (YYZ) and Calgary. The carrier expanded to include several leisure routes and operated a fleet of three Airbus A320 aircraft.
In recent developments, the airline had announced a leadership change with Eddy Doyle retiring and being succeeded by Brigitte Goersch. However, Goersch, along with other key executives, resigned on August 12. The company had been seeking additional capital to sustain operations.
The suspension follows a trend in Canada’s aviation sector, where Lynx Air had previously halted flights, citing high operating costs and other financial challenges. Canada’s Competition Bureau has since launched a study to address competition issues in the domestic airline industry, aiming to improve service quality and cost efficiency for Canadian travelers.