Wikinews

Canadian charter airline Skyservice suspends operations

This is the stable version, checked on 18 December 2024. Template changes await review.

Wednesday, March 31, 2010

Related articles
Location of Canada
Collaborate!
Canada
Canada

Skyservice, a Canadian charter airline, has cancelled several flights from Toronto's Pearson International Airport, with reports that the airline has ceased operations.

The company cites debt levels and changes in the vacation travel market with its decision to shut down operations and file for receivership. At the time of the filing in Ontario Superior Court, Skyservice is said to owe almost $9 million CAD to long-term partner and Thomas Cook subsidiary Sunquest Vacations. This situation exacerbated the debt load already put on the airline by a leveraged buyout in 2007 by Vancouver-based private equity firm Gibralt Capital Corporation. That placed more debt than was workable on the troubled airline, along with Roynat Capital calling in their loans to Skyservice earlier in the year.

Skyservice has stated that it will work with its partner companies and other providers to ensure customers stranded by the airline's sudden shutdown are dealt with effectively, according to a company representative. In addition to customers impacted by the cancellation of flights for the month of April, approximately 860 jobs are expected to be lost as a result of this shutdown.

Tour operator Signature Vacations, under a contract with Skyservice until 2013, has stated that they were prepared for the airline's receivership, having joined forces with rival service Sunwing Airlines.

Last year, operator Conquest Vacations declared bankruptcy, allegedly due to the economic downturn and reduced revenues throughout the industry.


Sources

 

Share this:           


 

This page is archived, and is no longer publicly editable.

Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.

The text of this article is licensed under the terms of the Creative Commons Attribution 2.5 License

  This page is archived, and is no longer publicly editable.
Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.

The text of this article is licensed under the terms of the Creative Commons Attribution 2.5 License
Retrieved from "https://en.wikinews.org/w/index.php?title=Canadian_charter_airline_Skyservice_suspends_operations&oldid=4815468"