No, they didn't have a falling out. While Skyservice and MyTravel may sleep together on a regular basis, their relationship is not mutually exclusive! After the fall of Canada 3000, Skyservice signed a contract with Signature Vacations (which is owned by First Choice) for a fair amount of lift. With the range required for Caribbean flights from some western cities, the B757 is a better aircraft, and this way, Skyservice gets that capability during the winter months without adding another type.
Word is that Skyservice will reciprocate with an A320 in the U.K. next summer for Air 2000, and will continue their deal with MyTravel.
Scud