Jetsgo Ceases Operations

[sensrule]

AS of just after midnight tonight, Jetsgo ceased flying

taken from cbc.ca:

Jetsgo ceases operations; travellers stranded
Last Updated Fri, 11 Mar 2005 00:56:43 EST
CBC News

MONTREAL - Jetsgo, one of the country's upstart discount airlines, announced just after midnight Friday that it will stop all operations immediately.

Passengers are advised to make alternative travel arrangements as there will be no aircraft or staff available. Travellers looking to return from a trip must also book with other airlines.

"We deeply regret that this had to happen. The decision to cease operations was only taken after difficult deliberation. We are very concerned about our customers and the significant hardship that this action causes," said Michel Leblanc, President of Jetsgo, in a statement.

Leblanc founded the company in June 2002 from the ashes of Canada 3000 Inc., which collapsed after the Sept. 11 terrorist attacks caused a downturn in air travel.

The shutdown comes at the start of March break, one of the busiest travel times of the year.

In a news release, the airline said it will be asking the Quebec Superior Court to grant it bankruptcy protection.

The release blamed "difficult market conditions" for its action.



I dunno, I could really see this one coming. My heart goes out to the employees.

[ASpilot2be]

Nooo, this is sad I kinda saw it coming, but wanst expecting it so soon. My heart also goes out to all the employees.

[BlueMatt]

ITS FINALLY ALL OVER!!! Thank god!!! We all knew this was coming too.. so its really not that much of a shock. I surely will not be missing them. This is really good news for all the airlines in canada, finally there can be some stability in the marketplace, and it will make for a much more healthier operating environment. It sucks for the employees tho.. looks like LeBlanc took what cash was left and abruptly closed up shop.

So I guess WJ won't be retiring their whole fleet of 732's after all this year unless they pick up several more new a/c

[UnitedFlyer]

It's too bad for the employee's, but as has been said, we all saw it coming. Sounds like they might be around for a while yet though if they are granted bk protection.

[avro_arrow_25206]

I'm sorry for all the employees and the stranded pax, but I think most of them saw that coming...

The company said clients who have paid for Jetsgo tickets should contact the Canadian Transportation Agency: 1-888-222-2592.

What? That's so irresponsible! I guess they want to stick with the same "quality" of service even after it went under


Now on a lighter side:
Who wants to bet on the new name of Michel Leblanc's next airline?

(ps: you can still book a penny fare on the website!)

[sturla]

In a news release, the airline said it will be asking the Quebec Superior Court to grant it bankruptcy protection.

Sounds like they might be around for a while yet though if they are granted bk protection.

That's what I was immediately thinking when I saw "bankruptcy protection" too ... however bankruptcy protection usually implies that they want to file a restructing plan under which they will (or hope to) become profitable in the future. So I wonder why they would shut down operations if they still intend to continue operations? (Because nobody will want to fly on them if/when they were to re-emerge.) Puzzling.

Who wants to bet on the new name of Michel Leblanc's next airline?

My thoughts: Who wants to bet on Michel Leblanc escaping some sort of investigation?

-Sturla

[avro_arrow_25206]

Update: here's what's happening at YYZ:



data from Greater Toronto Airports Authority website.


@sturla: I bet he will not have to be responsible for anything, just like before

[BlueMatt]

[QUOTE=sturla]That's what I was immediately thinking when I saw "bankruptcy protection" too ... however bankruptcy protection usually implies that they want to file a restructing plan under which they will (or hope to) become profitable in the future. So I wonder why they would shut down operations if they still intend to continue operations? (Because nobody will want to fly on them if/when they were to re-emerge.) Puzzling.

I think they shut down ops because there is probably zero cash left, the planes are falling apart and they had a poor image in the eyes of the travelling public. Theres no room in this country for 3 discount carriers, especially one that expanded as quickly as SG, it was pretty obvious it wouldn't last. Now the other airlines in canada can be healthy and profitable, and this overcapacity issue is gone.

[sensrule]

I think Jetsgo's opertunity to enter CCAA came and passed weeks ago. Im sure the upper managment, as well as most well informed people knew this would happen sooner or later.

BlueMatt has it right... there is only room for the three prodomanent carriers in this country. Westjet in the West, Canjet in the East, and Air Canada all around. Jetsgo was always floating away by itself in another market. Its just another way the Canadian airline industry is changing.

[djarfur]

surprise surprise... or... no not really
Slow and steady wins the race
It is a shame though, all those people stuck looking for jobs now... poor guys

[yyz-yvr]

Well...what can I say? Time to find my granparents a new flight and change my picture! Sad day...

[delta767]

I really wanted to see one of their planes at West Palm Beach before they went under. Looks like that wont be happening

[andrew_c]

I am happy that I got to go to Pearson last weekend to see them, will probably be the last time I ever see them fly . I am going to Pearson again this weekend, I will see what I can do about getting photos of aircraft on tarmac etc. Anyone know where they have most of the planes stored?

[ACman]

Thats intresting, why would he shut it down at peak travel period? Like I sad, he just wants your money and hes gonna run with it. Idiot. More oike Jetsdontgo.

[sturla]

Thats intresting, why would he shut it down at peak travel period? Like I sad, he just wants your money and hes gonna run with it. Idiot. More oike Jetsdontgo.

I doubt that Leblanc is running away with money that belongs to the company. If he does he most certainly will be subject to a criminal investigation.

Jetsgo is probably shutting down because of acute cash flow problems. Guess those load factors were wrong after all...

-Sturla