Jetsgo Ceases Operations

BlueStar · Post by **BlueStar** » Thu Mar 10, 2005 10:21 pm

Press Release Source: Jetsgo

Jetsgo Ceases Operations
Friday March 11, 12:02 am ET

MONTREAL, March 11 /CNW/ - Jetsgo Corporation announced today that it is ceasing all operations effective immediately.
Passengers are advised to make alternative travel arrangements prior to going to the airport as there will be no Jetsgo staff or aircraft available. Travellers seeking to return to their point of origin must make alternative arrangements with other airlines or with their travel agent or tour operator.

Jetsgo will be asking that the Quebec Superior Court immediately grant it protection under the Companies' Creditors Arrangement Act. Court protection will allow Jetsgo to consider all options available to reorganize its affairs.

Given difficult market conditions resulting from competitive pressures in the Canadian airline industry, Jetsgo has determined that, in the circumstances, it is prudent and responsible to discontinue its operations and ground all of its planes.

Michel Leblanc, President of Jetsgo, said: "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. In the meantime, we encourage our passengers to contact their travel agent or an alternative airline."

Jetsgo intends to keep its stakeholders, including its employees and customers, informed of the development of its restructuring process. Information and Court filed documents regarding the CCAA proceedings will be available on Jetsgo's website at http://www.jetsgo.net as well as on RSM Richter Inc.'s website at http://www.rsmrichter.com and will regularly be updated. Information may also be obtained by communicating with RSM Richter Inc. by telephone at 1-800-246-1125.

If you are a customer of Jetsgo and have paid for a flight that is no longer scheduled, you may wish to communicate with the Canadian Transportation Agency: by telephone, 1-888-222-2592, by fax, 1-819-953-5686 or on its website at http://www.cta.gc.ca, or the appropriate provincial authority:

- Ontario: The Travel Industry Council of Ontario (TICO)
Tel.: (905) 624-6241 /Toll-free: 1-888-451-TICO

- Quebec: Office de la protection du consommateur,
Gouvernement du Québec
Tel.: 1-888-672-2556

- British Columbia: Business Practices and Consumer Protection Authority
Tel.: (604) 320-1667; Toll-free number: 1-888-564-9963

- Alberta: Alberta Government Services Tel.: (780) 427-4088;
1-877-427-4088 toll-free number in Alberta only

- Manitoba: Consumer and Corporate Affairs, Consumers' Bureau
Tel.: (204) 945-3800; 1-800-782-0067 toll-free within Manitoba

- Saskatchewan: Saskatchewan Justice, Consumer Protection Branch
Tel.: (306) 787-5550; 1-888-374-4636 toll-free number in Saskatchewan

- New Brunswick: Department of Justice - Consumer Affairs Branch,
Provincial Government Tel.: (506) 453-2659

- Nova Scotia: Business & Consumer Services, Consumer Complaints
Tel.: (902) 424-5531

- Prince Edward Island: Department of Consumer and Corporate Services
Tel.: (902) 368-5653

- Newfoundland and Labrador: Consumer Affairs Officer, Department of
Government Services and Lands
Tel.: (709) 729-2623

http://www.newswire.ca/en/releases/orgD ... okey=70071

Schlem · Post by **Schlem** » Thu Mar 10, 2005 10:37 pm

Holy shit!

double-j · Post by **double-j** » Thu Mar 10, 2005 10:41 pm

If this is true I am deeply sorry to all the Jetsgo pilots and employees. Although there may have been a rivalry I would never wish this on anyone.

sincerely,
a fellow pilot
and WJ employee.

maxofthenorth · Post by **maxofthenorth** » Thu Mar 10, 2005 10:43 pm

I am very sorry to all JetsGo people, and I wish them the best for the future. This is a hard time for the industry, and I know you all worked hard to keep your airline going.

Schlem · Post by **Schlem** » Thu Mar 10, 2005 10:44 pm

jazzy-j wrote:If this is true I am deeply sorry to all the Jetsgo pilots and employees. Although there may have been a rivalry I would never wish this on anyone.

I had to check CBC news for confirmation because I found it so hard to believe.

I have friends flying for JG and this is truely a shock. I hope all the crews are flying soon.

CClub · Post by **CClub** » Thu Mar 10, 2005 10:49 pm

Good grief, that's terrible. No matter what anyone has to say about the running of that company, more pilots, and other workers unemployed sucks.

I must admit though, that I did a lot of searching for information before actually believing that article.

http://www.newswire.ca/en/releases/arch ... c3606.html

pogeypilot · Post by **pogeypilot** » Thu Mar 10, 2005 10:52 pm

Get out there and grab those WJ stocks while you still can!

North of You · Post by **North of You** » Thu Mar 10, 2005 10:56 pm

I know a few of the guys at this company and all I can say is…they deserved better than this. All the best to everyone and especially those with families.

Jaques Strappe · Post by **Jaques Strappe** » Thu Mar 10, 2005 10:56 pm

You know what the real tragedy here is? Not only are they looking for a job, but they have to service a $30K debt.

I am very sorry to hear this but anyone who has been in aviation long enough in Canada should know that Michel Leblanc laughs all the way to the bank on the backs of his employees.

compilot · Post by **compilot** » Thu Mar 10, 2005 10:59 pm

that should pretty much barry them, its going to be almost impossible to get the faith of customers back; considering all of the other options (WJ AC...) and Jetsgo still being a rather new airline to most

Jaques Strappe · Post by **Jaques Strappe** » Thu Mar 10, 2005 11:04 pm

Not to worry. ML will be back in a few months with orange planes and a "turn that frown upside down" logo on the tail.

There will be another $30K entry fee for pilots and they will be lined up out the door to get in.

KAG · Post by **KAG** » Thu Mar 10, 2005 11:11 pm

Not only have alot of good fellas just lost their jobs, but this is going to have a very negative effect on our industry that will take some time to clear up.
I feel really sorry for those stuck with the bonds.

Cheers.

Kosiw · Post by **Kosiw** » Thu Mar 10, 2005 11:15 pm

I have a buddy who was just completing line indoc on the F100, now this... he left a stable job at Georgian 4 months ago for the opportunity to fly at Jetsgo.....he is out 30k, no income, mortgage and car payments, and a wife who is pregnant!

This industry and that assh@le Leblanc in particular absolutely destroys peoples lives!

ice ice baby · Post by **ice ice baby** » Thu Mar 10, 2005 11:18 pm

HOLY SHIT

a bit sooner than I would have expected....

festivus · Post by **festivus** » Thu Mar 10, 2005 11:22 pm

I just hope everyone remembers this when this dick starts up another company. Anybody who would work there after this would truly deserve what they got. We need to bring back Keel Hauling for this piece of shit. Oh, and I'm sure he's "deeply regretting" what happened, I doubt he cares at all about all the people he just F'd over. Karma's a bitch, you'll get what's coming to you someday buddy.

Kosiw · Post by **Kosiw** » Thu Mar 10, 2005 11:22 pm

Does anyone have any numbers as to how many pilots Jetsgo employed?

Typhoon pilot · Post by **Typhoon pilot** » Thu Mar 10, 2005 11:24 pm

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.

FROM OCT. 15, 2004: Jetsgo launches lawsuit against Westjet

The airline, based out of Montreal, flew across the country. Although its primary business was between Canadian cities, Jetsgo also provided flights to New York City, Las Vegas and destinations in Mexico and Florida.

Jetsgo had recently filed a $50-million lawsuit against WestJet Airlines and two of its executives alleging that its competitor had managed to get information to "gain an unfair competitive advantage over Jetsgo and prey upon Jetsgo's business and operations by targeting both profitable and vulnerable routes, flight times and fares."

The company said it would keep the public informed of its re-structuring through its website as well as on RSM Richter Inc.'s website at http://www.rsmrichter.com. Further information may also be obtained by calling RSM Richter: 1-800-246-1125.

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

Thats off theCBC site.

Schlem · Post by **Schlem** » Thu Mar 10, 2005 11:33 pm

I would honestly expect that in the bond contract there is a stipulation that if the pilot is let go because of the company shutting down or a lay off then the bond would be paid out.

Cod Father · Post by **Cod Father** » Thu Mar 10, 2005 11:34 pm

Wow! I feel so sad for those pilots.

At the same time, I can't help but feel happy about the predictions, heard first here at AvCanada

Kosiw · Post by **Kosiw** » Thu Mar 10, 2005 11:36 pm

Schlem,

My buddy was told in his initial interview almost a year ago, that regarding the 30k bond, that if the company were to either run into financial difficulty or shutdown, that the company was not in any way responsible for repayment of the bond!

Schlem · Post by **Schlem** » Thu Mar 10, 2005 11:45 pm

Kosiw wrote:Schlem,

My buddy was told in his initial interview almost a year ago, that regarding the 30k bond, that if the company were to either run into financial difficulty or shutdown, that the company was not in any way responsible for repayment of the bond!

My God!

I have a friend who just finished his line indoc on the F100 but haven't talked to him about this yet... I'll be calling him tomorrow. If that's the case though it makes me wonder even more why guys would sign up to fly at JG... 30k turned me away from even considering applying but add to that the fact you could be stuck with the repayment should have been *the* red flag to just say "NO!".

The "jet" carrot isn't worth 30k of misery in any way, shape, or form.

North of You · Post by **North of You** » Thu Mar 10, 2005 11:46 pm

If I were ML, I would sleep with a locked door. There are some rather pi(*%$ off pilots now in this country who I can see taking matters into their own hands. And all the power to them I say.

As for ML himself, his reputation is so battered now in this country, you will never see him start another carrier here ever again. May he rot in the hottest place in hell.

Nomad · Post by **Nomad** » Thu Mar 10, 2005 11:57 pm

If he gave a shit about his customers or employees he wouldn't have shut down at 12:02 am with no notice. I can't begin to express my anger at how he has f*cked over so many people and as we all assume, run away with no conscience at all.

What a PRICK, he doesn't "deeply regret" anything.

Nomad · Post by **Nomad** » Fri Mar 11, 2005 12:01 am

Employees, Passengers, Travel agents, People and companies with contracts (rampies, fuel etc) all fucked over. Even creditors.

Rot Leblanc

(and I don't work there or know anyone who does)

Panama Jack · Post by **Panama Jack** » Fri Mar 11, 2005 12:05 am

My sincerest regrets for my industry colleagues at Jetsgo. I personally know two very excellent fellows who worked for them, and hope they will be OK and find something new soon.

Let this be a lesson to the industry of one of the hazards of "Low-Cost", they are not automatically the "silver bullet," teflon-coated solution to the airline industry. They are businesses, like the Legacy Carriers, that compete against each other and sometimes win, sometimes lose. The secret to their niche is that they offer the low-fares at the cost of their employees-- lower wages and up-front fees to subsidize for lower fares. Reckless competition that doesn't even offer any promise of sustainability or a long-term future in return.

The profession is in decline, and it is our own fault.