From CBC News
CanJet to fly again
Last Updated Tue, 16 Apr 2002 15:24:15
HALIFAX - A former competitor in Canada's air wars is gearing up to return to the air.
CanJet first flew in 2000. The airline was sold to Canada 3000 about half a year later.
CanJet Airlines said it will resume flights this summer to cities in central and Atlantic. Further details on the return of the discount carrier are due to be released in May.
CanJet's parent company, I.M.P. Group of Halifax said in a news release that the relaunch was motivated by the federal government's new laws to allow fair airline competition in Canada.
CanJet started flying in September of 2000. The carrier's first flights used two Boeing 737s to take passengers between Toronto, Ottawa, Halifax, and Windsor.
However, just two days after taking to the air, CanJet filed complaints with the federal Competition Bureau accusing Air Canada of unfair price competition.
The Competition Bureau slapped Air Canada's wrist and ordered the dominant carrier to stop selling its special fares on five routes: Halifax-Ottawa, Halifax-St. John's, Halifax-Montreal, Toronto-Windsor and Ottawa-Windsor. That case is still before the Competition Tribunal.
Just over a month after starting operations, CanJet Airlines stopped flying its Toronto-Windsor route due to a lack of interest from the flying public.
In late March 2001, Canada 3000 bought CanJet in a $7-million all-stock deal. As part of a major expansion, Canada 3000 also bought Royal Aviation.
Canada 3000 subsequently filed for bankruptcy last November amid the fallout from Sept. 11 and competition from Tango, Air Canada's discount service.
Not all who wander are lost....