Who’s looking good right now? “The agents who wouldn’t sell Canada Jetlines,” says executive

The grounding of Canada Jetlines continues to make headlines as the leisure airline, after less than two years, officially ceases its operations amid a cash flow crisis.

The Mississauga, ON-based carrier flew mostly to sun destinations, like Orlando, Cancun and Jamaica, out of Toronto (and Halifax, at one point). It also operated leases and charter trips.

In a statement yesterday, company spokesperson Erica Dymond said Jetlines pursued all available financing alternatives “including strategic transactions and equity and debt financings.”

READ MORE: Canada Jetlines announces imminent closure

“Unfortunately, despite these efforts, the company has been unable to obtain the financing required to continue operations at this time,” Dymond said, as reported by the Canadian Press.  

Reports say the airline will now file for creditor protection. Nonetheless, Canada Jetlines becomes the latest victim of Canada’s cutthroat aviation sector, joining others that have bit the dust in recent months, such as Lynx Air, which closed in February, and WestJet’s budget carrier Swoop, which folded last October.

“Something I approached with caution”

Travel advisors like Ontario-based Brenda Slater of Beyond the Beach welcomed the addition of a new player like Canada Jetlines, which, since commencing operations in 2022 (initially with Toronto-Calgary flights) had positioned itself as a trade-friendly airline, offering all kinds of promos and incentives for travel advisors.

“The opportunity for agents to have another option on fares and package pricing is something that is definitely healthy for our industry,” Slater told PAX on Friday (Aug. 16).

That said, as a new-ish supplier, Jetlines was “something I approached with caution.”

“Like most senior agents, I'm very cautious when something new comes around as we have repeatedly been put in the position of having to fix it when things go sideways, for no compensation from the supplier,” Slater said.

“A bit of a challenge for new suppliers as we all enter this circle of learning to trust in the product based on their performance and feedback. This takes time, and I'd assume, a great deal of financial backing to gain enough industry confidence.”

Slater had seen Jetlines’ product in SIREV, “but I had yet to book anything with them,” she went on to say.

“It’s sad that price-driven consumers would purchase something based on price as oppose to the same trip with a more solid performer,” she said. “I would imagine there are many online bookers that now find themselves having to fight for the return of their trip costs. Just another reason why using an experienced advisor for their expertise is a very good plan.”

Jeffrey Verman, chief executive officer of Mississauga, ON-based Plus Travel Group, echoed that sentiment.

“As much as I want competition amongst airlines, the travel agents that look the best right now are the agents who wouldn’t sell Canada Jetlines,” Verman told PAX.

Entrances & exits

Canada Jetlines managed to grow its fleet to four aircraft, which were all Airbus A320s (if it means anything, the planes have great legroom).

By the end of this year, Jetlines was aiming to add more planes – by 2026, it was hoping for 15.

In addition to serving a handful of sun destinations, at lower-than-usual prices, the carrier provided charter flights for sports teams, like the CFL’s Ottawa Redblacks, and other leases.

The airline, for example, had an ACMI agreement with Air Arabia Maroc in Casablanca this summer.

Trading of Canada Jetlines shares on the NEO Exchange was halted Wednesday as the airline’s fate became clearer. A company memo that was sent to the airline’s crew that day, which media circulated, confirmed that Jetlines would be discontinuing.

The shutdown follows the resignation of four board members on Monday, including Jetlines’ CEO Brigitte Goersch, as PAX reported earlier.

The mass exodus adds 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.

Sanjay Kopalkar, director of sales and business development at Jetlines, then announced his exit this past June.

Aviation expert John Gradek told CBC News that the airline had "been on the edge for months."

"When you look at their pattern of operations and their pattern of funding...to me it was a surprise that they didn't get their licence pulled by Transport Canada earlier," Gradek told CBC.

Duncan Bureau, at one point, served as Jetlines’ chief commercial officer. He left in June of last year, calling it a “planned exit" to pursue other opportunities. 

Bureau posted a message to his LinkedIn page on Friday, writing that one of his “greatest accomplishments in life” was working with the start-up team at Canada Jetlines.

“It is with a heavy heart that I learned that the airline is heading into CCAA. With every great tragedy or storm, there is opportunity created, and I want to introduce to the world a pool of employees who would bring tremendous value and passion to any company,” Bureau wrote.

He urged his network of aviation professionals to consider hiring the Canada Jetlines employees who have lost their jobs.

“To my former team, I want to thank you for all the hard work, passion and dedication you delivered every day,” he wrote. “[Your] passion and professionalism contributed to a great brand and product that you should all be very proud of.”

He added that starting an airline in a “hostile start-up environment” is “a herculean task.”

“It is very unfortunate that the cards are stacked against new entrants by the archaic and punitive policies that have been created by this Canadian government,” Bureau wrote.

“A sobering reminder”

Maciej Wilk, interim CEO at low-cost carrier Flair Airlines, took to LinkedIn on Thursday (Aug. 15) to comment on the news.

“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.

“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.”

Advice from the CTA

Passengers with existing bookings at Jetlines are now left to navigate the Wild West of airline refunds. Customers are being advised to contact their credit card company to get their money back.

"Every effort is being made to assist passengers at this time,” spokesperson Dymond said, as quoted in the Canadian Press.

The Canadian Transportation Agency (CTA) has posted guidance to its website, acknowledging the cessation of Jetlines’ operations, along with advice for impacted customers.

Passengers who have purchased a ticket for future travel with Jetlines should contact their travel agent or transportation provider “as soon as possible to see if it is possible to make alternative arrangements.”

“If not, they may need to secure their own alternative travel arrangements,” the CTA writes.

Passengers who paid for their tickets by credit card should also contact their credit card company to see what they are eligible for, the CTA says.

If travel insurance was purchased, passengers should contact the insurance company to see if their coverage includes such circumstances, the agency adds.

And, if passengers purchased travel from an agent registered in Ontario, Quebec or British Columbia, they may be eligible for a refund from the provincial government authorities responsible for travel.

In Ontario, that would be TICO; in B.C., Consumer Protection BC; and in Quebec, the Office de la protection du consommateur.

Canada Jetlines made noble attempts to engage with the travel trade. But it wasn’t enough to win over travel advisors who’ve been around the block, and have seen it all.

“Surprise, surprise! We saw that one coming,” wrote Angie Brevetti of The Travel Agent Next Door, commenting on the news on her Facebook page. “And that's why as an experienced travel agent, I never booked or recommended that option. Even though it was cheaper.”  

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