Founded in 2013, and commencing operations nine years later, Canada Jetlines (operated and branded as jetlines) is closing up shop after struggling to get their finances in order.
On Thursday, the airline issued an official statement confirming that they will be ceasing operations effective August 15, 2024.
Canada Jetlines announced today that it will be temporarily ceasing airline operations effective August 15, 2024. This comes just hours after crew members were issued an internal update suggesting the same.
The continuing operations of the Company have been dependent upon the Company’s ability to raise adequate financing and to grow the airline to the point where it can commence profitable operations. The Company has historically financed its future requirements through a combination of debt, equity or other facilities. The Company, overseen by an independent Board committee and advised by external advisors, pursued all available financing alternatives including strategic transactions, and equity and debt financings. Unfortunately despite these efforts, the Company has been unable to obtain the financing required to continue operations at this time.
Every effort is being made to assist passengers at this time. Passengers with existing bookings are advised to contact their credit card company to secure refunds for pre-booked travel.
The Company intends to file for creditor protection. Additional details will follow regarding such filing.
This follows a memo sent out to crew members on Wednesday where management informed staff that the airline is expected to announce suspension of operations.
“Hello Crew, we have some difficult news to advise that we will be making an announcement that Canada Jetlines will be ceasing operations. I know there will be many questions and concerns but the immediate issue at hand is for you to be ready to depart tomorrow. We are working on travel plans at this very time and you will be advised details as soon as we know. Further details will be shared.”
A few days before, four board members tendered their resignation on Monday, including the company’s now-ex interim CEO Ms. Brigitte Goersch.
In a previous statement issued on August 12, they announced that “Ms. Brigitte Goersch, Mr. Ryan Goepel, Ms. Beth Horowitz and Mr. Shawn Klerer have resigned. Ms. Brigitte Goersch has also resigned as Chief Executive Officer.
“The continuing operations of the Company have been dependent upon the Company’s ability to raise adequate financing and to grow the airline to the point where it can commence profitable operations. The Company has historically financed its future requirements through a combination of debt, equity or other facilities. As a result, the Company will need to raise additional capital to continue operations. The Company’s board of directors and management is actively working on potential sources of additional capital. Additional details will be provided once available. At this time the airline is continuing operations.”
The company initially claimed that it would continue to operate as it sought new ways to raise additional capital to keep operations going, but with all financial avenues exhausted, this is no longer the case.
Canada Jetlines offered scheduled flights out of Toronto Pearson with their last three cities being Orlando, Cancun and Jamaica. It seems all this came to an end as they deployed their four Airbus A320-200s to operate charters for Air Arabia Maroc and Corendon Dutch Airlines. With the operations suspension, these aircraft will most likely be grounded and eventually returned to their lessors in due time.
Now that the airline has shut down, it doesn’t appear to be a catastrophic loss as they did not have much of a noticeable footprint in the Canadian aviation market. Prior to these changes, the carrier performed its last batch of scheduled flights at the end of June.
Flight and ground personnel will obviously be displaced, but I’m sure they will be quickly swooped up by much larger competing airlines.
(Story updated to reflect official suspension of services)
Featured image: Canada Jetlines