Canada Jetlines (AU, Toronto Pearson) has appointed BDO Canada as its trustee and filed a Notice of Intention to Make a Proposal, the first step of a restructuring process under the county's Bankruptcy and Insolvency Act. On August 15, Canada Jetlines announced it would suspend all flights and file for creditor protection after it ran out of cash and exhausted all financing options.
"The filing of the Notice of Intention has the effect of imposing an automatic stay of proceedings that will protect the company and its assets from claims and enforcement proceedings of creditors and contractual counterparties," an August 21 statement from the airline reads.
"During the stay, subject to certain exceptions as set out in the Bankruptcy and Insolvency Act, no creditor has any remedy against the company or its property and no person may terminate or amend any agreement, including a security agreement, or claim an accelerated payment, or a forfeiture of the term, under any agreement, including a security agreement, by reason only that the company is insolvent or that the Notice of Intention has been filed."
The initial stay period is 30 days. However, this may be extended by court order. Jetlines launched in September 2022 and provided charter and scheduled flights from Toronto to destinations throughout North America and the Caribbean. Recently, it was operating a few dozen flights per month from Toronto to Miami, Orlando, and Cancún, and it had reportedly made multiple requests for short-term financing to maintain day-to-day operations. Shortly before Canada Jetlines said it would cease all flights, four board members, including CEO Brigitte Goersch, announced their resignations.
Separately, Corendon Dutch Airlines (CD, Amsterdam Schiphol) has confirmed grounding the two A320-200s it had wet-leased from Canada Jetlines earlier this year to support its operations out of Maastricht and Rotterdam. In a statement, Corendon said it was "forced to end the collaboration with Canada Jetlines prematurely," and it had sourced replacement aircraft from alternative suppliers. "We have been able to find enough capacity to solve this ourselves."
