Canada Jetlines owes $11.8M to creditors; TICO posts closure guidance

More information about the closure of Canada Jetlines is surfacing as new reports say the Mississauga, ON-based airline owes $11.8 million (CAD) to creditors.

The debt amount was made public by aviation news websites ch-aviation and FL360aero.

As previously reported, Jetlines recently made a voluntary assignment in bankruptcy for the benefit of its creditors 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, will continue as the airline’s legal counsel.

Canada Jetlines Vacations was a TICO-registered travel retailer and tour operator that also terminated its TICO registrations on September 11, 2024.

TICO posts guidance 

The Travel Industry Council of Ontario (TICO), on Wednesday, posted a closure advisory, outlining instructions for impacted customers in Ontario.

TICO had previously received confirmation that Canada Jetlines Vacations (the airline's tour operator arm) had cancelled all future vacation package bookings (hotel and airfare) and issued refunds to affected consumers.

If a client had a future package booking with Canada Jetlines Vacations, they are to monitor their credit card statement for the refund, TICO says.

This applies to packages purchased either from Canada Jetlines Vacations directly or through a TICO-registered travel agency or website.

If a client had an upcoming Canada Jetlines Vacations booking that was cancelled and has not received a refund, they are to contact TICO at 1-888-451-8426 or (905) 624-6241 or tico@tico.ca.

Alternatively, consumers who have not received a refund for their Canada Jetlines Vacations booking may request a claim form or contact TICO. 

For airline customers

Consumers who purchased their Canada Jetlines air only travel services through a TICO-registered travel agency or booking website and who have not received the travel services or a refund may have an eligible claim against the Compensation Fund, TICO says.

A claim form at this link or by contacting TICO directly.

Consumers who purchased airfare only directly from Canada Jetlines or through a travel agency/booking website outside of Ontario are not eligible for reimbursement through the Compensation Fund.

There is a legislated six-month filing deadline for claims on the Compensation Fund. The filing deadline is March 12, 2025. Claims received by TICO after the filing deadline date will not be valid.

TICO is advising claimants to explore all other possible options for reimbursement as part of the claims process, either through credit cards, travel insurance or through BDO Canada Limited, Jetlines’ appointed as Proposal Trustee. Click here for contact information. 

“We recommend filing your claim with the Compensation Fund at the same time as your BDO filing to ensure you don’t miss the filing deadline,” TICO says.

Any additional documentation that is required to complete the claim can be sent to TICO when it is obtained.

Turbulent skies 

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 carrier served Atlantic Canada, offering flights from Halifax, to Toronto and Orlando. It also provided charter flights for sports teams and businesses, leasing its fleet to other airlines during the summer.

The airline’s closure became clear last month after four executives, including the airline’s CEO, Brigitte Goersch, all resigned from their positions.

The mass exodus added to a string of other exits in recent months. Earlier this year, Jetlines announced the departure of Brad Warren, chief operating officer, who left the company in April.

Then came the retirement of then-CEO Eddy Doyle, who stepped down on June 30 after serving in his role since 2021.

Jetlines’ suspended all of its flights on August 15 ahead of applying for creditor protection after running out of money and being unable to secure financing. A week later, it made a proposal to appoint BDO as trustee.

The airline’s creditors are set to have a teleconference meeting on October 1, reports say.

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