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.
Three new partners and seven business restructuring advisers have been appointed to the new Preston office
Political and economic uncertainty behind the fall in confidence
Just Racing Services, operating company of the Manor Racing Formula One team has entered administration
Last year 16 oil and gas companies became insolvent, finds Top Ten firm Moore Stephens