TORONTO — It took years and years to get off the ground – and just shy of 24 months to come to a skidding halt. A spokesperson for Canada Jetlines said yesterday that the company “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.
” The airline has grounded its planes and ceased operations. Passengers with existing bookings are asked to contact their credit card company to secure refunds. The company says the suspension of operations is temporary, with plans to file for credit protection.
FAMILIAR SCENE It’s a familiar scene for Canadian travel advisors who have seen more than a few airlines come and go over the years. Unlike many other start-up carriers, though, Canada Jetlines championed agents from the get-go. The airline secured retail distribution and GDS partnerships, offered commission and worked hard to get the trade onside with fams and contests.
Canada Jetlines’ strategy was in stark contrast to that of another new player, Lynx Air. Lynx went the low-cost route and didn’t court travel agents. In the end neither airline sustained altitude, with Lynx Air calling it quits in February 2024.
In December 2023 Porter Airlines CEO Michael Deluce said the travel market was too small to keep all of Canada’s airlines afloat for two more years. In less than a year he’s b.