Canada Jetlines makes voluntary assignment into bankruptcy

Canada Jetlines has made a voluntary assignment in bankruptcy for the benefit of its creditors, according to a press release issued on Wednesday (Sept. 11).

The decision is pursuant to section 49 of the Bankruptcy and Insolvency Act.

BDO Canada Limited will continue to act as Licensed Insolvency Trustee and realize on the company's assets in accordance with the BIA. Dentons Canada LLP, meanwhile, is the legal counsel to Jetlines.

A notice of the bankruptcy and particulars of the first meeting of creditors will be sent to creditors by mail in the coming days, Jetlines says.

Closure of the Mississauga-based airline became clear last month after four executives, including the airline’s CEO, all resigned from their positions.

On Aug. 21, the carrier said it would restructure its affairs, announcing that it had filed a notice of intention to make a proposal pursuant to Canada’s Bankruptcy and Insolvency Act.

Canada Jetlines, which was founded in 2013 and commenced operations in 2022, 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 had unveiled a new route connecting Toronto to Miami and had also entered an ACMI agreement with Air Arabia Maroc in Casablanca for the summer.

Jetlines also operated in Atlantic Canada, with flights from Halifax, to Toronto and Orlando.

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