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Canada Jetlines announces imminent closure
08-15-2024
8:01 am
Michael Pihach
Michael Pihach is an award-winning journalist with a keen interest in digital storytelling. In addition to PAX, Michael has also written for CBC Life, Ryerson University Magazine, IN Magazine, and DailyXtra.ca. Michael joins PAX after years of working at popular Canadian television shows, such as Steven and Chris, The Goods and The Marilyn Denis Show.
This story was updated on Thursday, August 15 at 1:08 pm. EST.
The sun may be setting on Canada Jetlines, a value-focused leisure carrier that was founded in 2013 and commenced operations in 2022.
As PAX reported on Wednesday (Aug 14), four executives, including the airline’s CEO, all resigned from their positions recently.
The individuals who stepped down include the now former CEO Brigitte Goersch, Ryan Goepel, Beth Horowitz and Shawn Klerer.
In an Aug. 12 press release, the Toronto-based airline said its continuing of operations have been dependent upon its ability to raise adequate financing.
"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,” a statement reads.
The airline said its board of directors and management is "actively working on potential sources of additional capital."
The company also noted that it would be continuing operations at this time. But a memo sent to crew members on Wednesday (Aug 14) tells a different story.
As reported on Gate Checked, the airline’s management has informed its staff that the carrier will close soon, with no timeline being given.
Earlier this year, Jetlines announced the departure of Brad Warren, chief operating officer, who left the company at the end of April. Then came the retirement of the airline’s then-CEO Eddy Doyle, who stepped down on June 30 after serving in his role since 2021.
Sanjay Kopalkar, director of sales and business development at Jetlines, also announced his exit from the company in June.
Canada Jetlines offered scheduled flights out of Toronto Pearson, with their last three cities being Orlando, Cancun and Jamaica aboard a small fleet of Airbus A320-200s.
The airline recently announced the launch of a new route connecting Toronto to Miami and had entered an ACMI agreement with Air Arabia Maroc in Casablanca for the summer.
The leisure carrier also operated in Atlantic Canada, with flights from Halifax, to Toronto and Orlando.
On Thursday, the airline issued a statement, saying it was temporarily halting operations as it had been unable to raise enough to continue.
Erica Dymond, a company spokesperson, said the airline "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."
“A sobering reminder”
Maciej Wilk, interim CEO at low-cost carrier Flair Airlines, took to the airline's LinkedIn on Thursday (Aug. 15) to comment on Jetlines’ situation.
“Canada Jetlines worked tirelessly to provide Canadians with a much-needed alternative to the status quo in aviation, and their departure is a sobering reminder of the challenges that face airlines committed to fair competition in this country,” Wilk wrote, adding that the news “only strengthens Flair’s resolve.”
“Competition in Canadian aviation is not just important—it’s essential. Flair has been at the forefront of challenging the Big Two, and we will continue to do so with resilience, dedication, and a clear focus on efficiency,” Wilk wrote.
“We will honour the spirit of competition that Canada Jetlines helped foster by continuing to push the boundaries of what’s possible, staying true to our mission, and ensuring that Flair remains a vital choice for travellers across Canada."
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