Jetsgo: Leblanc says he's sorry
globeandmail.com
Jetsgo founder sorry By ALLAN SWIFT
Thursday, March 17, 2005 Updated at 5:42 PM EST
Canadian Press
MONTREAL — Jetsgo founder Michel Leblanc says he is sorry for the abrupt shutdown of the airline, which marooned some 17,000 passengers, many who were about to depart on vacation at the start of the annual school break in Ontario.
“Very clearly, I have deep sorrow for the people whose plans at school break were shattered, but we didn't have any choice,” Mr. Leblanc told The Canadian Press in an interview in his office Thursday.
Mr. Leblanc added it was not possible for Jetsgo to do other than to pull the plug abruptly just before midnight last Friday.
“When we had to make the tough choice of ceasing operations, that's because we couldn't ensure any more a reliable operation,” he said.
If Jetsgo had tried to declare bankruptcy first, crews and mechanics might have decided not to show up for work, Mr. Leblanc said, putting the airline schedules and safety at risk.
Mr. Leblanc also revealed that he has lost $7-million of his personal fortune in Jetsgo, which he founded in 2002 with the proceeds from the sale of Royal Airlines to Canada 3000.
The company has been given a month under bankruptcy protection to come up with a plan for creditors. Mr. Leblanc said he hopes to salvage some of the company, although it is too early to say what.
He said the company has very low debt and has assets, mainly its 15 Fokker 100 aircraft. He said there is a good market for them.
The other 14 aircraft Jetsgo had were leased.
The founder and majority owner of Canada's third-largest airline had harsh words for his toughest competitor, Calgary-based WestJet Airlines Ltd., as well as Nav Canada, the corporation responsible for air traffic.
Mr. Leblanc accused WestJet of using corporate espionage to undercut his operations, and blamed Nav Canada for trying to seize some of his planes even though he insisted Jetsgo was not behind in its payments.
Mr. Leblanc said his other priority, besides safety, was to ensure all his 1,350 ex-employees got paid up to the time of the shutdown.
Mr. Leblanc denied speculation by analysts and the media that Jetsgo was the author of its own demise by setting prices too low to be viable.
He said every time Jetsgo tried to raise fares, it was undercut by WestJet and Air Canada.
“We have only 10 per cent of the market; it's not us who lead the industry,” he said.