Canada’s Skyservice Airlines Is Forced To Close Its Doors

Canada’s Skyservice Airlines Is Forced To Close Its Doors <

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Canada’s Skyservice Airlines Is Forced To Close Its Doors By Bill Goldston

		April 1, 2010 - On Wednesday, after 24 years in operations, Canadian’s Skyservice Airlines closed its doors after the Ontario Superior Court of Justice ordered FTI Consulting Canada Inc receiver of all the assets, undertakings and properties of Skyservice Airlines Inc. Skyservice was forced into receivership after its majority stakeholder, Gibralt Capital Corp., and a key partner, My Sunquest Vacations, a division of Thomas Cook PLC, called in their loans with the carrier. A major potion of Skyservice's business came from My Sunquest Vacations. Roughly 1,000 jobs are expected to be lost as a result. Sunquest Vacations has organized replacement flights for all of its customers who might otherwise have been affected by Skyservice Airlines. No flights were scheduled for Wednesday.

Customers who are currently booked to fly with Skyservice will now be accommodated on alternative flights. Travellers already at their destinations who departed from Toronto or Winnipeg on Skyservice flights, all flights have been replaced. Most of the return flights will operate on the same day as their existing itinerary, although some departure times may change. Sunquest will provide accommodation at no cost for package holiday customers who cannot return on their scheduled departure day. Travellers departing from Toronto between now and April 30, 2010 booked on Skyservice flights, alternative flights have been arranged for these customers. Sunquest’s summer program begins May 1, 2010, flights for the summer season are being provided by WestJet , Canada ’s second-largest airline. Sunquest expects to announce its flight provider for the 2010-2011 winter programs very shortly. Skyservice Inc. had provided air ambulance and charter airline services (Skyservice Airlines) based in the Etobicoke area of Toronto, Ontario, Canada. The company employed more than 2000 people. As well as Canada, the Skyservice Airlines division flew to the U.S., Caribbean, Mexico, Israel and Europe. During the summer Skyservice sold tickets to Europe from Toronto using a Boeing 757-200WL.

It also used an Airbus A330-300 for other chartered flights to Europe from Canada. Scheduled services to some destinations were offered during the summer season. Skyservice offered online-booking for those who wished to travel on Skyservice's scheduled destinations in the summer.

Canada's Transport Minister John Baird has stated, "Today, the Government of Canada was made aware that Skyservice Airlines is shutting down its operations. This is following the appointment of a Receiver by the Ontario Superior Court of Justice.

"Skyservice has indicated that it will ensure passenger issues are resolved promptly by working with all tour operator customers and other providers. The Government of Canada is carefully monitoring the situation and encouraging Canadian airlines to assist affected passengers.

"For Canadians currently travelling abroad, the Government of Canada has an emergency consular service telephone line (1-800-387-3124). Consumers who have paid for Skyservice tickets should contact the Canadian Transportation Agency for further information."

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