Canadian low-cost carrier Jetsgo is ceasing operations with immediate effect and will be filing for court protection from creditors.
“Given difficult market conditions resulting from competitive pressures in the Canadian airline industry, Jetsgo has determined that, in the circumstances, it is prudent and responsible to discontinue its operations and ground all of its planes,” the Montreal-based company says in a statement.
“Passengers are advised to make alternative travel arrangements prior to going to the airport as there will be no Jetsgo staff or aircraft available. Travellers seeking to return to their point of origin must make alternative arrangements with other airlines or with their travel agent or tour operator.”
The company, which employs 1,350 people, says it will be asking the Quebec Superior Court to grant it protection under Canada’s Companies’ Creditors Arrangement Act, which “will allow Jetsgo to consider all options available to reorganise its affairs”.
President Michel Leblanc says: “We deeply regret that this had to happen. The decision to cease operations was only taken after difficult deliberation. We are very concerned about our customers and the significant hardship that this action causes. In the meantime, we encourage our passengers to contact their travel agent or an alternative airline.”
Leblanc, a former head of Royal Aviation, launched Jetsgo in 2002 and it expanded rapidly in its nearly three years of operations. Its fleet includes more than 30 Boeing MD-82/83s and Fokker 100s, according to Avsoft’s ACAS database, which were operating to 20 Canadian and 10 US destinations.