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Old 11th Mar 2005, 05:21
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Thumbs down Jetsgo Ceases Operations

Jetsgo Ceases Operations


MONTREAL, March 11 /CNW/ - Jetsgo Corporation announced today that it is
ceasing all operations effective immediately.
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.
Jetsgo will be asking that the Quebec Superior Court immediately grant it
protection under the Companies' Creditors Arrangement Act. Court protection
will allow Jetsgo to consider all options available to reorganize its affairs.
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.
Michel Leblanc, President of Jetsgo, said: "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."
Jetsgo intends to keep its stakeholders, including its employees and
customers, informed of the development of its restructuring process.
Information and Court filed documents regarding the CCAA proceedings will be
available on Jetsgo's website at www.jetsgo.net as well as on RSM Richter
Inc.'s website at www.rsmrichter.com and will regularly be updated.
Information may also be obtained by communicating with RSM Richter Inc. by
telephone at 1-800-246-1125.
If you are a customer of Jetsgo and have paid for a flight that is no
longer scheduled, you may wish to communicate with the Canadian Transportation
Agency: by telephone, 1-888-222-2592, by fax, 1-819-953-5686 or on its website
at www.cta.gc.ca, or the appropriate provincial authority:

- Ontario: The Travel Industry Council of Ontario (TICO)
Tel.: (905) 624-6241 /Toll-free: 1-888-451-TICO

- Quebec: Office de la protection du consommateur,
Gouvernement du Québec
Tel.: 1-888-672-2556

- British Columbia: Business Practices and Consumer Protection Authority
Tel.: (604) 320-1667; Toll-free number: 1-888-564-9963

- Alberta: Alberta Government Services Tel.: (780) 427-4088;
1-877-427-4088 toll-free number in Alberta only

- Manitoba: Consumer and Corporate Affairs, Consumers' Bureau
Tel.: (204) 945-3800; 1-800-782-0067 toll-free within Manitoba

- Saskatchewan: Saskatchewan Justice, Consumer Protection Branch
Tel.: (306) 787-5550; 1-888-374-4636 toll-free number in Saskatchewan

- New Brunswick: Department of Justice - Consumer Affairs Branch,
Provincial Government Tel.: (506) 453-2659

- Nova Scotia: Business & Consumer Services, Consumer Complaints
Tel.: (902) 424-5531

- Prince Edward Island: Department of Consumer and Corporate Services
Tel.: (902) 368-5653

- Newfoundland and Labrador: Consumer Affairs Officer, Department of
Government Services and Lands
Tel.: (709) 729-2623


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Old 11th Mar 2005, 05:42
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I have just landed at Toronto and walking through customs we were told what had happened.

Made sense of a few radio calls we heard on the way back from Cuba.

What happens to the $30,000 training fee the pilots pay to get a job?

Skyservice are gonna be busy.
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Old 11th Mar 2005, 05:44
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Well, that was a shot out of the blue. There were rumours but bankruptcy so fast? Was it totally financial? Two weeks ago they announced they were significantly increasing Western Canada operations to compete hardline with Westjet.

You go for bankruptcy protection over here but generally keep operating in the meantime. These guys cease operations immediately and then seek bankruptcy protection.

Anyway, thinking of the passengers stranded once again. Thinking of staff also at the moment. Jetsgo management apparently is not.

Last edited by Rollingthunder; 11th Mar 2005 at 05:55.
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Old 11th Mar 2005, 11:57
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JetsGo shuts down...Pilot fund Started

The Story... http://www.theglobeandmail.com/servl...tory/Business/


I would like to start a fund to aid all JetsGo pilots and their families especially those that just started.

I will be asking the Admin @ www.avcanada.ca to be the primary holder of the funds as donations come in.

Anyone have any thoughts on how best and efficient potential funds can be distributed?

IABD
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Old 11th Mar 2005, 12:16
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Rumours of JetsGo's demise have been floating around for quite some time, but I didn't know that the problems had been so serious.

The airline had a number of maintenance issues with the MD-83s which gave the airline quite a reputation for delays, and the service levels onboard simply did not match that of fellow Canadian no-frills airline WestJet.

Whilst there was a huge void in capacity when Canadian was snapped up by AC, and the subsequent demise of Royal/Canada 3000, WestJet has expanded fast enough with their modern fleet to partially fill that void.
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Old 11th Mar 2005, 13:24
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Unhappy sad

My sincere condolences to all Jetsgo employees and their families...

Dave @ AC
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Old 11th Mar 2005, 14:27
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Ive just read in the Globe and Mail that Westjet will

implement a plan until March 14 for stranded passengers that would give them special fares in markets served by both carriers.
I'm sorry to hear about the whole mess.
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Old 11th Mar 2005, 15:12
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WRONG!

These pilots made a conscious decision to pay the $30,000 for their training, and thereby voluntarily accepted the risks of this happening. They diminished the stature of the profession by doing this, and therefore are not entitled to any assistance beyond Canada's Unemployment Insurance.

Risk versus reward.......
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Old 11th Mar 2005, 15:26
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Jetsgo

Hi everyone.
I am trying to learn more behind the truth of the Jetsgo story.
are there any former pilots, workers etc I can speak to.
Where did the pilots gets their training? Is this a for sure?

Is the owner of this airline the same man who owned Royal and Int-air??

Darryl Konyennbelt
Global National
905-334-0415
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Old 11th Mar 2005, 16:21
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eight iron special: These pilots made a conscious decision to pay the $30,000 for their training, and thereby voluntarily accepted the risks of this happening. They diminished the stature of the profession by doing this, and therefore are not entitled to any assistance beyond Canada's Unemployment Insurance.
The mark of most true professions is that they pay for their own training. I have the utmost respect for what pilots do, and their status as professionals - but you're skating on very thin ice with this argument.
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Old 11th Mar 2005, 16:42
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Is the owner of this airline the same man who owned Royal and Int-air??
One and the same
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Old 11th Mar 2005, 16:49
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Just spoke to one of their Dispatchers no one in the Company below director level new this was coming.Crews are stranded just like the pax.
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Old 11th Mar 2005, 17:08
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Globaliser;

You said "The mark of most true professions is that they pay for their own training."

Pilots pay for their training in order to get their licenses, just as a doctor pays for medical school and lawyers pay for law school.

However, once qualified, does a doctor pay $30,000 for being an intern at a specific hospital? Does a lawyer pay $30,00 to article at particular law firm?
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Old 11th Mar 2005, 17:24
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Globaliser:

Pilot's pay for their own ab-initio training, whether it is a contract commitment with the Air Force, Cadet program through an Airline or the good old fashioned way of slogging it out on your own. This would be equivlent to a University degree in terms of both time spent and funding ($50,000+).

Once you are in the employ of an air carrier the type specific training rests with the company. The company is not training you to be a Pilot as you have already aquired these accreditiations (Private Pilot, Commercial Pilot, Night Rating, Multi-Engine Instrument Rating, Airline Transport Rating etc.)

In this case the Air Carrier woud hire you as a Pilot, assuming you meet all the minimum qualifications (hours flown, type of aircraft flown etc.), then assign you to an aircraft in which you would take type specific training. At the end of the training a Pilot Prificiency Check (PPC) is completed under the oversight of the Federal Regulatory body (JAA, FAA, Transport Canada etc.) The PPC then has to be re-done every 6 months or you lose the right to fly. Fail the PPC more than three times - life gets real complicated...

The PPC training is what eight iron special is talking about. In recent years low value (not lo-cost) Airlines have been taking advantage of the Pilot Profession by establishing minimum term employment contracts (typically 2 -3 years). Attached to these contracts are bonds - in Jetsgo's case $30,000 committed by the Pilot at time of hire. If the Pilot should leave within the 3 year contract period then the Airline can demand all or partial payment of the bond.

Sounds reasonable in theory, however...

Now there is no incentive for the Air Carrier to commit to reasonable and fair working conditions. The salaries tend to be extremely low, flight hours the maximum allowed under law, poor or minimum follow up training, minimum maintenance, ground handling etc. (ALL of the items that are coming to light about Jetsgo). In the meantime, your Professional Pilot has become a willing accomplice as his or her number one priority at this stage is to remain employed so as to not lose their $30,00 dollar investment.

At the end of the day your low value carrier drives the ticket prices to a lower than true cost margin causing air carriers that are trying to run a safe reliable operation to meet these unrealistic prices.

As Professional Pilots it is imperative that we stop this proccess right at the outset by NOT Signing these idiotic bonds .

Some will argue that "if I don't sign on, somebody else will so it might as well be me putting time in my logbook". History is full of that type of individual thinking - none of it with good outcomes...
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Old 11th Mar 2005, 17:44
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I would like to start a fund to aid all JetsGo pilots and their families especially those that just started.

Why just the pilots? why not maintenance, flight attendants CSA`s etc.? Are they the only ones hurt by this situation? I hope you were being sarcastic!
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Old 11th Mar 2005, 17:45
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excellent post Orca,
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Old 11th Mar 2005, 18:07
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While we can symapthize in our family, (got the tshirt) I don't seem to recall any offer of a fund (ecxept from those who were in the company...) thanks for that ...to help any C3 pilots...why is jetsgo any different?
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Old 11th Mar 2005, 18:25
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It's been a looooooooooong time since a Canadian carrier left its pax and crews in the lurch.

Part of the reason is that the Companies Creditors Arrangements Act normally puts the company under control of a receiver who continues operations.

Michel LeBlanc has just incinerated any and all goodwill towards JetsGo in the Canadian public.

The morning news woke me up to the news of Toronto area families on their long planned spring school break vacation trip wandering around the terminal.

Spring Break flights to resort destinations are typically booked full several months in advance and seats on alternate carriers to these destinations are not to be had for love or money.

Then there's the folks who suddenly have no way to get back to work -- the JetsGo customer base being mostly constituted of low budget travellers whose credit cards are maxed out by the time they're on the way back

At least there's nobody coming to boot them out of their accommodations

I have no idea what M. LeBlanc and his receiver must be smoking, but I always thought flying full planes was good for the cash flow
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Old 11th Mar 2005, 19:07
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RBF:

"It's been a looooooooooong time since a Canadian carrier left its pax and crews in the lurch."

Not so sure about that, I had friends stranded in Hawaii when Canada 3000 ceased operations and it was not that long ago.




"I have no idea what M. LeBlanc and his receiver must be smoking, but I always thought flying full planes was good for the cash flow"
Not if you are filling the planes by giving the seats away at unsustainably low fares.
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Old 11th Mar 2005, 20:04
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Jetsgo, IMHO was never going to work, there is strong competition from Westjet, Canjet and to a lesser degree, Air Canada Jazz which they never managed to put a dent in. The fundamentals of a low cost airline, is a common fleet, at least until it has momentum, a good reputation and a good route network. Jetsgo had none of these, operated maintenance intensive MD83s and introduced the F100 which then means that maintenance costs go up, type rating/training pilots/crew becomes an issue, correct me if I am wrong the MD83 and the F100 dont have a common type rating??

It would seem that they had an ambitious route network which spread themselves to thinly, and the frequency was not sufficient to tempt travllers away from other carriers. It would seem prudent to find a niche in the market, get a strong business base and then spread into other markets, slowly but surely.

Operating a mixed fleet is going to be a serious issue for a low cost airline, All successful low cost carriers started out with one fleet until they were strong in their market. Look at Southwest, Easyjet, Jetblue (albiet until recently) Westjet, even got rid of their old 737-200's to cut costs. Coupled with fuel costs, poor management and a tidal wave of public dissatisfaction, they were doomed months ago.

The chap in charge should find another business venture in future.
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