Thursday, March 24, 2005

Jetsgo, Jetsgoing, Jetsgone, Jetsback?

CTV reports that bargain-basement airline Jetsgo, Michel Leblanc's fourth airline to go bust, may take flight again if a court approves a restructuring plan. But its creditors aren't buying:

However, the plan may be a tough sell to creditors who are owed more than $100 million.

This total does not include money owed to employees or companies that leased 14 aircraft to the airline....

"I'm dumbfounded. I can't believe they'd be suggesting that," John Weerdenburg, vice-president and chief executive officer of Ottawa's Macdonald-Cartier International Airport Authority, told the Star. "Who ultimately would end up trusting the son of Jetsgo?"

Weerdenburg said his airport is owed $220,000 by Jetsgo and he suspects several airports will want their money up front.

Meanwhile, media reports suggested that at least a couple of Jetsgo creditors are seeking to seize grounded aircraft as remuneration for the $7 million that they are allegedly owed by the discount airline.

NAV Canada and the Greater Toronto Airports Authority have petitioned Quebec's Superior Court to lift a stay in proceedings and allow them to seize part of the grounded fleet in the aftermath of Jetsgo's downfall.

And the airports who got hosed for Jetsgo's landing, terminal and airport improvement fees (one of those nasty little taxes the airlines pass on to us) want those planes, damn it. Whoever gets them first, gets 100 cents on the dollar. Sit back and watch the creditors stampede.

See Brent Jang's Globe and Mail article for details.

No comments: