Jetsgo Ceases Operations
Join Date: Oct 2003
Location: Canada
Posts: 1,852
Likes: 0
Received 0 Likes
on
0 Posts
Jetsgo moved Fokkers to protect assets from creditors
globeand mail.com
Jetsgo sent jets to Quebec for safe haven from creditors
Under guise of 'air worthiness' checks, company sought to protect its Fokkers
By BRENT JANG
Tuesday, March 15, 2005 Page B1
A financially imperilled Jetsgo Corp. sent the bulk of its fleet of 15 Fokker 100s to Quebec City last Thursday night in a calculated effort to protect its prized assets from creditors.
Jetsgo pilots had been told to refuel and fly to Quebec City for "air worthiness" checks on parts, including engine thrust reversers, The Globe and Mail has learned. A Transport Canada official said no maintenance checks were ordered and airport and aircraft industry officials added that Jetsgo ultimately wanted to ensure an orderly return of its company-owned aircraft.
Four hours before Montreal-based Jetsgo announced its shutdown at around midnight Thursday, the discount carrier started transferring the Fokkers to its Quebec City hangar, keeping the planes away from creditors, such as authorities at Toronto's Pearson International Airport.
Insolvent Jetsgo, privately controlled by Montreal entrepreneur Michel Leblanc, filed for bankruptcy protection on Friday morning in the Quebec Superior Court.
Some of Jetsgo's Toronto-based pilots stayed overnight in Quebec City and then rode a Via train back to their Ontario home base, said one Jetsgo pilot familiar with the situation.
"The pilots were kept in the dark. They would not have flown the planes back to Quebec City if they knew the company was being shut down," one pilot said.
Jetsgo had hired NordTech Aerospace Inc. to provide maintenance, repair and overhaul services in Quebec City for Jetsgo's fleet. NordTech itself is owed $2.5-million for work previously done on the fleet.
An industry source said yesterday that it made sense for Mr. Leblanc to protect his 15 Fokkers from creditors breathing down his neck and to worry less about the airline's 14 leased Boeing MD-83s.
The used Fokkers, with an average age of 12½ years, could be worth $750,000 apiece, depending on their condition, the source said.
Officials working for Pearson's operator, the Greater Toronto Airports Authority (GTAA), had phoned Jetsgo financial vice-president André Deslauriers early last week, seeking payment for landing fees and other charges, such as counter space.
Then GTAA chief financial officer Judy Fountain sent a so-called "arrears letter" to Jetsgo, demanding payment for overdue bills running into the millions of dollars, as did Nav Canada, the country's operator of air traffic control systems.
Nav Canada threatened to seize aircraft on March 7, but backed off after working out a schedule for payments in arrears.
Still, with other creditors attempting to tighten payment schedules, Jetsgo opted to set the wheels in motion that would lead to the 2½-year-old airline seeking court protection from creditors.
One by one, starting Thursday night and lasting through early Friday, the Fokkers owned by Jetsgo made a beeline for Quebec City, including planes from Halifax, Moncton, Ottawa, Montreal and Toronto.
Jetsgo's leased 160-seat Boeing MD-83s followed the usual pattern of parking overnight at Pearson, Vancouver International Airport and Montreal's Trudeau Airport.
Jetsgo bought the 100-seat Fokkers from American Airlines Inc. in February, 2004, and those aircraft would have been easier to seize, compared with getting into a battle over the MD-83s with Jetsgo's leasing company.
Around 9 p.m. last Thursday, GTAA staff began to notice a pattern across Canada of Jetsgo's Fokkers heading for a leased Quebec City hangar. It took them by surprise because on a normal night, those Fokkers would tend to park at whatever airport is listed as that flight's final destination.
By Friday morning, most of the Fokker fleet had made it to Quebec City, a court filing said. However, one Fokker was still in West Palm Beach, Fla., according to a GTAA official who didn't want to be named. Eight of Jetsgo's 14 MD-83s were stored at Pearson, while the remaining six were spread between Vancouver and Montreal.
The Fokker flights to Quebec City didn't appear on the schedule of regular routes. "They weren't on our boards, but they were flights put into the mix. They just had their pilots fly them back, so it wouldn't have been a flight for passengers," GTAA spokeswoman Connie Turner said in an interview yesterday.
On Thursday night around 10 p.m., rumours ran rampant at Pearson that Transport Canada had ordered a special inspection of the Fokkers.
Airport officials believed the rumours had a grain of truth because the federal department had issued a 30-day warning notice to Jetsgo last Tuesday to ensure that its internal manuals would be updated. Transport Canada had uncovered deficiencies in the carrier's "organizational structure," including managers being stretched too thin.
But Transport Canada didn't order any grounding or special inspection of Jetsgo's Fokkers, so "in hindsight, it was very clear that Jetsgo wanted those planes back in Quebec," Ms. Turner said.
A Transport Canada spokeswoman confirmed yesterday that the government didn't force the Fokkers to fly to Quebec City.
Yesterday, Toronto-area Jetsgo employees showed up at a Pearson hangar to collect final paycheques. .
But as with so much of the Jetsgo saga, even the carefully planned final paycheques didn't go smoothly. Late yesterday, court-appointed monitor RSM Richter Inc. addressed concerns from employees who had run into problems cashing their cheques. "We have now been advised that all problems have been sorted out and that cheques will clear the bank," RSM Richter's Yves Vincent said in a statement.
Jetsgo sent jets to Quebec for safe haven from creditors
Under guise of 'air worthiness' checks, company sought to protect its Fokkers
By BRENT JANG
Tuesday, March 15, 2005 Page B1
A financially imperilled Jetsgo Corp. sent the bulk of its fleet of 15 Fokker 100s to Quebec City last Thursday night in a calculated effort to protect its prized assets from creditors.
Jetsgo pilots had been told to refuel and fly to Quebec City for "air worthiness" checks on parts, including engine thrust reversers, The Globe and Mail has learned. A Transport Canada official said no maintenance checks were ordered and airport and aircraft industry officials added that Jetsgo ultimately wanted to ensure an orderly return of its company-owned aircraft.
Four hours before Montreal-based Jetsgo announced its shutdown at around midnight Thursday, the discount carrier started transferring the Fokkers to its Quebec City hangar, keeping the planes away from creditors, such as authorities at Toronto's Pearson International Airport.
Insolvent Jetsgo, privately controlled by Montreal entrepreneur Michel Leblanc, filed for bankruptcy protection on Friday morning in the Quebec Superior Court.
Some of Jetsgo's Toronto-based pilots stayed overnight in Quebec City and then rode a Via train back to their Ontario home base, said one Jetsgo pilot familiar with the situation.
"The pilots were kept in the dark. They would not have flown the planes back to Quebec City if they knew the company was being shut down," one pilot said.
Jetsgo had hired NordTech Aerospace Inc. to provide maintenance, repair and overhaul services in Quebec City for Jetsgo's fleet. NordTech itself is owed $2.5-million for work previously done on the fleet.
An industry source said yesterday that it made sense for Mr. Leblanc to protect his 15 Fokkers from creditors breathing down his neck and to worry less about the airline's 14 leased Boeing MD-83s.
The used Fokkers, with an average age of 12½ years, could be worth $750,000 apiece, depending on their condition, the source said.
Officials working for Pearson's operator, the Greater Toronto Airports Authority (GTAA), had phoned Jetsgo financial vice-president André Deslauriers early last week, seeking payment for landing fees and other charges, such as counter space.
Then GTAA chief financial officer Judy Fountain sent a so-called "arrears letter" to Jetsgo, demanding payment for overdue bills running into the millions of dollars, as did Nav Canada, the country's operator of air traffic control systems.
Nav Canada threatened to seize aircraft on March 7, but backed off after working out a schedule for payments in arrears.
Still, with other creditors attempting to tighten payment schedules, Jetsgo opted to set the wheels in motion that would lead to the 2½-year-old airline seeking court protection from creditors.
One by one, starting Thursday night and lasting through early Friday, the Fokkers owned by Jetsgo made a beeline for Quebec City, including planes from Halifax, Moncton, Ottawa, Montreal and Toronto.
Jetsgo's leased 160-seat Boeing MD-83s followed the usual pattern of parking overnight at Pearson, Vancouver International Airport and Montreal's Trudeau Airport.
Jetsgo bought the 100-seat Fokkers from American Airlines Inc. in February, 2004, and those aircraft would have been easier to seize, compared with getting into a battle over the MD-83s with Jetsgo's leasing company.
Around 9 p.m. last Thursday, GTAA staff began to notice a pattern across Canada of Jetsgo's Fokkers heading for a leased Quebec City hangar. It took them by surprise because on a normal night, those Fokkers would tend to park at whatever airport is listed as that flight's final destination.
By Friday morning, most of the Fokker fleet had made it to Quebec City, a court filing said. However, one Fokker was still in West Palm Beach, Fla., according to a GTAA official who didn't want to be named. Eight of Jetsgo's 14 MD-83s were stored at Pearson, while the remaining six were spread between Vancouver and Montreal.
The Fokker flights to Quebec City didn't appear on the schedule of regular routes. "They weren't on our boards, but they were flights put into the mix. They just had their pilots fly them back, so it wouldn't have been a flight for passengers," GTAA spokeswoman Connie Turner said in an interview yesterday.
On Thursday night around 10 p.m., rumours ran rampant at Pearson that Transport Canada had ordered a special inspection of the Fokkers.
Airport officials believed the rumours had a grain of truth because the federal department had issued a 30-day warning notice to Jetsgo last Tuesday to ensure that its internal manuals would be updated. Transport Canada had uncovered deficiencies in the carrier's "organizational structure," including managers being stretched too thin.
But Transport Canada didn't order any grounding or special inspection of Jetsgo's Fokkers, so "in hindsight, it was very clear that Jetsgo wanted those planes back in Quebec," Ms. Turner said.
A Transport Canada spokeswoman confirmed yesterday that the government didn't force the Fokkers to fly to Quebec City.
Yesterday, Toronto-area Jetsgo employees showed up at a Pearson hangar to collect final paycheques. .
But as with so much of the Jetsgo saga, even the carefully planned final paycheques didn't go smoothly. Late yesterday, court-appointed monitor RSM Richter Inc. addressed concerns from employees who had run into problems cashing their cheques. "We have now been advised that all problems have been sorted out and that cheques will clear the bank," RSM Richter's Yves Vincent said in a statement.
Join Date: Oct 2004
Location: far away
Posts: 6
Likes: 0
Received 0 Likes
on
0 Posts
I empathize for the families of those affected by yet another ruse from Michel Leblanc.
However, the loss of training bonds is just too bad. Paying for your own training is not only blackmail but it undermines the future working conditions for all pilots. I guarantee the next start up low cost carrier will take advantage of the numerous unemployed pilots again. Those of you that accepted those conditions are naive and you are now paying the price. Better luck next time.
I vote to ban Leblanc from the Canadian aviation industry, a la Lorenzo from Eastern.
However, the loss of training bonds is just too bad. Paying for your own training is not only blackmail but it undermines the future working conditions for all pilots. I guarantee the next start up low cost carrier will take advantage of the numerous unemployed pilots again. Those of you that accepted those conditions are naive and you are now paying the price. Better luck next time.
I vote to ban Leblanc from the Canadian aviation industry, a la Lorenzo from Eastern.
Join Date: May 2004
Location: Canada
Posts: 52
Likes: 0
Received 0 Likes
on
0 Posts
Now it turns out that there was a buying frenzy of Westjet stock just days before Jetsgo's collapse. On average 300,000 shares are traded daily, on the two days before Jetsgo's bankruptsey 3,000,000 shares were traded. Westjet's shares increased 40% after Jetsgo's collapse. Someone in the know made a lot of money.
Dave Fisher
Dave Fisher
Join Date: Oct 2003
Location: Canada
Posts: 1,852
Likes: 0
Received 0 Likes
on
0 Posts
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.
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.
Ohcirrej
Join Date: Feb 2003
Location: This is the internet FFS.........
Posts: 2,921
Likes: 0
Received 0 Likes
on
0 Posts
and blamed Nav Canada for trying to seize some of his planes even though he insisted Jetsgo was not behind in its payments.
$1.6 million owing was the last figure I heard from the powers that be.
Join Date: Mar 2005
Location: North America
Posts: 15
Likes: 0
Received 0 Likes
on
0 Posts
My friend at the tower tells me Nav can allowed him up to 4 Million. He owes 5.6 million and in this mans that in his twisted mind that means he only owes 1.6 million. And I hear Nav Can was thinking about taking some airplanes because of these numbers.
May this man rot in H%$ for what he has done to almost 10 persons I know who are all out on the street because of him.
May this man rot in H%$ for what he has done to almost 10 persons I know who are all out on the street because of him.
Join Date: Sep 2002
Location: North of the 49th parallel, eh!
Posts: 219
Likes: 0
Received 0 Likes
on
0 Posts
Is he for real? This guy's not playing with a full deck...
Yeah, no kidding there Michel! 
He said every time Jetsgo tried to raise fares, it was undercut by WestJet and Air Canada.
