Canada 3000 files for bankruptcy
Canada's second biggest airline, Canada 3000, has filed for bankruptcy protection joining recently collapsed Sabena as a victim of the knock-on effects of September's terror attacks.
The move comes after a failed attempt by the airline to reach a cost-cutting deal with the country’s unions, after the Canadian government had originally agreed to loan Canada 3000 Pounds 32.3m providing the low-cost airline cut costs and found fresh investment.
Yesterday, transport minister David Collenette said Canada 3000 could still receive the money if the provisions were met.
Canada 3000 and the country’s biggest carrier Air Canada applied to the government for loans after a sharp downturn in the airline business in the wake of the September 11 attacks.
Bankruptcy protection will enable the company to continue its operations while it restructures.
The airline, which began operations in 1988 as a charter airline, carried more than five million passengers a year, employed 4,400 employees and managed a fleet of more than 40 aircrafts.
Thousands of passengers have been left stranded at airports as a result of the collapse.
Links
Belgian airline files for bankruptcy