A Canadian carrier has become the latest airline to cease flying, halting operations less than two years after launching.
Canada Jetlines is the third Canadian carrier to go bust in less than a year, and joins a growing list of airlines globally to ground all flights.
“The Company, overseen by an independent board committee and advised by external advisors, pursued all available financing alternatives including strategic transactions, and equity and debt financings,” said the low-cost carrier, which mostly flew from Toronto to sunny holiday destinations in Miami and Mexico as well as charter trips.
“Unfortunately despite these efforts, the company has been unable to obtain the financing required to continue operations at this time.
“Every effort is being made to assist passengers at this time. Passengers with existing bookings are advised to contact their credit card company to secure refunds for pre-booked travel.”
Canada Jetlines’ failure follows the closure of Lynx Air in February and Swoop in October 2023 and remarkably leaves Flair Airlines as the only budget airline remaining in Canada.
According to The Canadian Press, HEC Montreal Professor of Transport Management, Jacques Roy, said entering the Canadian aviation market was currently a tough proposition.
“Every time a new player wants to enter the market, there’s only one certainty: they’re going to be losing money for the first eight, nine, 10 months at least, and perhaps even more. So you need a good bank account,” he stated.
“The major players will play the game of meeting your fares. And if you reduce your fares below your cost, then that’s a recipe for failure in the short term. It’s a tough market.”
Similar story
Canadian aviation’s challenges echo Australia’s. Both markets encompass massive geographical areas with relatively small populations and few major hubs. Hence, some airlines have struggled.
In the space of less than two months, Aussie low-cost carrier Bonza folded, while Rex Airlines went into voluntary administration, grounding all jet operations.
Another airline to operate in Australia, Air Vanuatu also went into voluntary administration within the last four months. Encouragingly, however, the national carrier recommenced some domestic operations this week between Port Vila and Santo, and Port Vila and Tanna, The Vanuatu Post reported. Liquidators also confirmed the airline will resume scheduled charter flights to six more ports from 2 September.
Other airlines to cease operations or file for bankruptcy in 2024 include Air Malta, Armenia’s FlyArna, and Antigua and Barbuda’s LIAT.
