Jetsgo Ceases Operations

briboy · Fri Mar 11, 2005 2:15 pm

Just came over the wire!

MONTREAL, March 11 /CNW/ - Jetsgo Corporation announced today that it is
ceasing all operations effective immediately.
Passengers are advised to make alternative travel arrangements prior to going to the airport as there will be no Jetsgo staff or aircraft available.
Travellers seeking to return to their point of origin must make alternative
arrangements with other airlines or with their travel agent or tour operator.
Jetsgo will be asking that the Quebec Superior Court immediately grant it protection under the Companies' Creditors Arrangement Act. Court protection will allow Jetsgo to consider all options available to reorganize its affairs.
Given difficult market conditions resulting from competitive pressures in the Canadian airline industry, Jetsgo has determined that, in the circumstances, it is prudent and responsible to discontinue its operations and
ground all of its planes.

Full release here

captaingomes · Fri Mar 11, 2005 2:28 pm

I might be a minority when I say this, but I feel bad for those involved. I do wish however that I could get my credit back! LOL

In all seriousness, a lot of good people are losing their jobs, and I wish them the best.

SegmentKing · Fri Mar 11, 2005 2:31 pm

isn't this the 2nd or 3rd airline the ceo has trashed?

-n

FA4B6 · Fri Mar 11, 2005 2:34 pm

I also feel bad.

It's a sad day when an airline goes under.

Good luck to all.

RayChuang · Fri Mar 11, 2005 2:36 pm

Maybe Jetsgo couldn't compete against WestJet? They probably didn't get enough business to keep them going. Sad

Biggles · Fri Mar 11, 2005 2:41 pm

Another case of expanding too quickly ?? Plus some maintenance and a few questionable passenger decisions didn't help.

SHUPirate1 · Fri Mar 11, 2005 2:43 pm

That's funny...you can still book tickets on JetsGo's website...

briboy · Fri Mar 11, 2005 2:47 pm

I agree, but... I think it was inevitable that this was going to happen. Canada could not sustain the number of entrants in the market, and the weakest entrant has left the market. Jetsgo did not do itself any favours in how it operated over the last few months, from the fiasco of Christmas, to the deteriorating safety and maintenance situation..

Not good for the employees of SG, but likely good for the industry as a whole.

/Brian

radarbeam · Fri Mar 11, 2005 2:49 pm

Good luck to all SG employees, I hope most will be able to find employement soon.

Typical ML.

Tennisace · Fri Mar 11, 2005 2:49 pm

Very, very sad but not surprising at all. Even us 'armchair quarterbacks' knew they simply were expanding too quickly, with too low of prices. Simply not sustainable. How may times have we seen this before?

With AC and even WJ posting losses this past quarter, Jestgo must have simply lost a bundle!

Best of luck to all the employees.

Summer booking for travel in Canada will be a nightmare now I would think. I wonder how quickly the others can ramp up capacity. I just hope AC, WJ, and Canjet don't make mistakes trying to fill the void too quickly.

ACYWG · Fri Mar 11, 2005 2:56 pm

I have sympathy for the employees of JetsGo. I was just talking about JetsGo today, and how I was expecting to hear something of this type shortly.

Quoting Tennisace (Reply 9):
Summer booking for travel in Canada will be a nightmare now I would think. I wonder how quickly the others can ramp up capacity. I just hope AC, WJ, and Canjet don't make mistakes trying to fill the void too quickly.

Simply because of fleet size, I would imagine that Air Canada will be most capable of filling the void. Most likely we will see aircraft being upgraded from CRJ's to A319's and A320's. Or perhaps we won't see any changes at all, as the overcapacity will have been reduced.

virgin747 · Fri Mar 11, 2005 2:59 pm

Its sad to see them go as they looked strong in Winnipeg today. But one quick question, my girlfriend has a ticket booked for the 26th of May, paid for it etc. Whats the deal now??

radarbeam · Fri Mar 11, 2005 3:02 pm

If the ticket wasn't booked through a travel agency she will probably lose her money. Otherwise the travel agency will refund the ticket.

SHUPirate1 · Fri Mar 11, 2005 3:04 pm

http://www.jetsgo.net/en/index.shtml

I'm still not sure if this is a hoax or not...

RobK · Fri Mar 11, 2005 3:06 pm

Quoting Virgin747 (Reply 11):
Its sad to see them go as they looked strong in Winnipeg today. But one quick question, my girlfriend has a ticket booked for the 26th of May, paid for it etc. Whats the deal now??

Realistically, you've no chance of seeing that money again. Banks/money lenders will always get first pickings.

Sorry.

Cheers,

Rob K Wink

ACYWG · Fri Mar 11, 2005 3:08 pm

Quoting SHUPirate1 (Reply 13):
http://www.jetsgo.net/en/index.shtml

I'm still not sure if this is a hoax or not...

Try booking a flight. It says there's either no flights, or they're all booked. Being thats its JetsGo, its most likely the former.

CPDC10-30 · Fri Mar 11, 2005 3:09 pm

If the ticket wasn't booked through a travel agency she will probably lose her money. Otherwise the travel agency will refund the ticket.

Actually, thats not true. If you paid by credit card, there is a good chance you can get a refund from the purchase protection program. Most Canada 3000 customers got refunds this way.

I really feel a bit sad about this, I flew SG in their first couple weeks of operations back in June 2002, SM was on that flight too. Not the best service, but they could have filled a niche in the market if they were a bit smarter. And it was nice finally getting some "Apparatus-80s" in Canada Smile

Although they have really had a bad string of luck lately and maybe it is for the better that they shut down if flight safety was being compromised.

If SG ever does come back, It would make sense to keep a few F100s and focus on routes out of YQB. Take an example from CanJet and don't be too ambitious.

BTW am I right in thinking the F100s ferried in order to prevent them from being seized at other airports? IIRC JetsGo owns these aircraft.

Aloha717200 · Fri Mar 11, 2005 3:12 pm

Sad to see them go, but I think we all saw this coming...

SHUPirate1 · Fri Mar 11, 2005 3:13 pm

Quoting ACYWG (Reply 15):
Quoting SHUPirate1 (Reply 13):
http://www.jetsgo.net/en/index.shtml

I'm still not sure if this is a hoax or not...

Try booking a flight. It says there's either no flights, or they're all booked. Being thats its JetsGo, its most likely the former.

Ready...

I can book myself on SG491, tommorrow night from PBI to YYZ, returning to PBI on 3/15 on SG 490, in Comfort Plus both ways, for US$647.96, straight from Jetsgo's website. Take that for what it's worth.

frmyqr · Fri Mar 11, 2005 3:14 pm

http://www.cbc.ca/

CBC has it too so I don't think it's a hoax. Sad

and for those who have tickets.

The company said clients who have paid for Jetsgo tickets should contact the Canadian Transportation Agency: 1-888-222-2592.
http://www.cbc.ca/story/canada/national/2005/03/10/Jetsgo-050310.html

[Edited 2005-03-11 07:17:17]

virgin747 · Fri Mar 11, 2005 3:22 pm

Quoting CPDC10-30 (Reply 16):
BTW am I right in thinking the F100s ferried in order to prevent them from being seized at other airports? IIRC JetsGo owns these aircraft.

Theres one that was stuck in Winnipeg all day, someone told me it was hit by a truck by Globe Ground. So that ain't going anywhere soon.....

Biggles · Fri Mar 11, 2005 3:23 pm

The local news stations in Calgary are carrying the story too..

I don't believe it's a hoax.

Airbus Lover · Fri Mar 11, 2005 3:41 pm

http://www.gtaa.com/index.aspx?Sid=N...&TERMINAL=0&submit.x=33&submit.y=3

See how all JetsGo flights are cancelled? Certainly no hoax!

rindt · Fri Mar 11, 2005 3:41 pm

Is anyone really surprised?

I was working on the SG163 tonight (F-100 from YVR-YXS) - and it had all of 22 passengers. I'm sorry folks, but this isn't a first... everytime I've worked this particular flight it leaves with less than 30 pax. You don't make money... and then wanting to expand the service to double-daily? Right...

As far as I'm concerned, Michel Leblanc is the Frank Lorenzo of the Canadian Aviation Industry.

What I feel the worst for are the pilots - they're the ones that are out the big bucks.

-Rob

ac7e7 · Fri Mar 11, 2005 3:44 pm

How about that Jetsgo flight to Cancun tomorrow from Toronto... I bet alot of travellers on their way to sunny Mexico are going to be disappointed...

frmyqr · Fri Mar 11, 2005 3:48 pm

Cosidering the time at YYZ right now. 01:47 they won't even know till they get to the airport. Today/tomorrow will be an interesting day indeed,....and Probably not a good one.

lymanm · Fri Mar 11, 2005 3:48 pm

"What I feel the worst for are the pilots - they're the ones that are out the big bucks."

Yes, though this gives credence to those that would like to see an end to such practices.

wjv04 · Fri Mar 11, 2005 4:00 pm

Frmyqr, I agree tommrow is gonna be a ugly day at pearson.

I think we all saw this coming...

airgeek12 · Fri Mar 11, 2005 4:02 pm

What's going on? Why are all of the Jetsgo flights being cancelled?

frmyqr · Fri Mar 11, 2005 4:04 pm

YYZ atc is talking to SJ481 right now.

http://www.liveatc.net/feedindex.php
he'll be down in about 20min

SkydrolBoy · Fri Mar 11, 2005 4:06 pm

another sad day in canadian aviation history...my heart goes out to all the employees of jetsgo who are now without work....

Biggles · Fri Mar 11, 2005 4:17 pm

It is indeed a sad day. Having been in the same situation before,I wish good luck to all the Jetsgo employees.

LAXintl · Fri Mar 11, 2005 4:20 pm

Looks like JGO481 from PBI might indeed be the last revenue Jetsgo flight to have operated.

frmyqr · Fri Mar 11, 2005 4:20 pm

might me something soon on the website (or just my connection) I time out when i check the website. Anybody else get it. SG was just cleared to land, this might be the last jetsgo flight.

BO__einG · Fri Mar 11, 2005 4:28 pm

I was pretty surprised that this announcement came only hours ago as it was not on the evening news. However as many have said about their questionable business function, their end was gona come sooner or later and it struck hard right at their smiley face tonight, and I feel some symphathy for the jobs lossed and the pax stranded.
However some passengers will be able to dine a way back.

Quoting WestJet from their news release hours earlier:

"WestJet has implemented a plan to aid Jetsgo's stranded customers. Until
12:00 a.m. on March 14, 2005, WestJet will provide stranded Jetsgo
customers with special fares on confirmed seats in all markets served by
WestJet and Jetsgo, before its announcement of its cessation of
operations. These special fares are subject to availability and WestJet
will assess the need to extend these fares on a day-to-day basis.

Prior to the airline ceasing operations, Jetsgo competed with WestJet in
the following markets: Victoria, Vancouver, Prince George, Kelowna,
Calgary, Edmonton, Fort McMurray, Saskatoon, Regina, Winnipeg, Toronto,
Ottawa, Montreal, Moncton, Halifax, St. John's, Los Angeles, New York,
Fort Lauderdale and Orlando.

Jetsgo customers can book WestJet flights online at www.westjet.com or
through WestJet's Sales Super Centre at 1-800-538-5696 (toll-free) or
250-5839 (in Calgary). Stranded Jetsgo passengers are encouraged to
contact their credit card companies or travel insurance companies to
seek compensation for their Jetsgo booking.

WestJet provides scheduled service to 33 North American cities and
charter service to 26 destinations in eight countries. The airline
operates a fleet of 56 aircraft featuring 38 Boeing Next-Generation 737
aircraft. "

yyz717 · Fri Mar 11, 2005 4:35 pm

The Jetsgo website has gone down in the last 45 minutes.

Anyway, they expanded too fast. The 18 F100's was the nail in the coffin.

Perhaps they will work out a CCAA arrangement and restart ops with fewer aircraft.

rindt · Fri Mar 11, 2005 4:49 pm

But who in their right minds would fly them again?

I can't tell you how many times a flight was delayed an hour or four... and then have the back-up flight have a snag that prevented it from flying, only for the passengers to be stranded again.

From what I see, only 12 F-100s were delivered... 6 are still "elsewhere".

-Rob

squad55 · Fri Mar 11, 2005 4:51 pm

Are they bankrupt or did they get their operating lc taken away???

ywg777 · Fri Mar 11, 2005 5:09 pm

I know the loads out of YWG wern't the greatest eathier. When your only getting 7-25 people off a MD-83 its very hard to break even. Selling seats for a $1.00 one way won't make a airline money at all. I am sure Westjet and AC will re-accomidate there passengers.

sad to see this airline go though.

Shawn

lymanm · Fri Mar 11, 2005 5:40 pm

AC will not help passengers, as Jetsgo had made no prior arrangements with AC. It's an AC press release. Insensitive? Probably. At the very least, AC says it will redeploy aircraft where loads deem fit.

yeggerman · Fri Mar 11, 2005 5:57 pm

It should not be about making prior arrangements and what not. Its about doing the right thing. Both AC and WS and even Canjet will do the right thing and help people out, because in turn they will try to win the piece of the pie SG had to themselves.

Side note: How many employee's did SG have? I know most CSA's were contracted as with ground handlers so how many actual employee's are affected?

Thanks
yeggerman

silver_wing767 · Fri Mar 11, 2005 6:12 pm

From what I have been reading on various websites, there was 1500 employees, who are no more. What a shame. All the best to those 1500..and All the other people who will be indirectly affected.

yeggerman · Fri Mar 11, 2005 6:28 pm

This just in:

WestJet Assists Jetsgo Crews

MARCH 11, 2005 - 03:12:19 ET
CALGARY, ALBERTA--(CCNMatthews - March 11, 2005) - WestJet (TSX:WJA)
today announced that it is offering $35 standby fares (plus all
applicable taxes and fees) to stranded Jetsgo crews including flight
attendants, pilots and maintenance personnel. This standby fare will be
available until Sunday, March 13, 2005 at 12:01 a.m. MST.

Seats at this $35 standby fare are offered on a space-available basis.

To take advantage of this offer, Jetsgo crewmembers must phone WestJet's
call centre at 1-877-435-9952 (toll-free) or 444-2483 (in Calgary).

WestJet provides scheduled service to 33 North American cities and
charter service to 26 destinations in eight countries. The airline
operates a fleet of 56 aircraft featuring 38 Boeing Next-Generation 737
aircraft.

FOR FURTHER INFORMATION PLEASE CONTACT:
WestJetPublic Relations and Communications
(403) 444-2615
(403) 444-2261
Website: www.westjet.com

Bluewave 707 · Fri Mar 11, 2005 6:55 pm

Sad to see an airline with so much potential go under. I agree with other posts, that the rapid expansion was probably did JetsGo in. That usually the cause of failure for most new airlines. The 2 biggest losers are the pax and the employess.

Maybe they'll be back in a smaller version?

yyz717 · Fri Mar 11, 2005 7:09 pm

AC will not help passengers, as Jetsgo had made no prior arrangements with AC. It's an AC press release. Insensitive? Probably.

It's not insensitive. AC is in business to make money, not provide social services to stranded Jetsgo passengers. No airline is obliged to assist when another carrier goes under.

It should not be about making prior arrangements and what not. Its about doing the right thing. Both AC and WS and even Canjet will do the right thing and help people out, because in turn they will try to win the piece of the pie SG had to themselves.

Doing the "right thing" for any business is simply to make money. Picking up stranded Jetsgo passengers for free is not the right thing for AC & WS. Airlines are for-profit enterprises, not charities.

avek00 · Fri Mar 11, 2005 7:21 pm

As someone who has a soft spot in his heart for Air Canada (and most North American legacy carriers generally), I find this to be a GOOD day for the Canadian airline industry - Jetsgo did little more than pollute the Canadian market with unreasonably low fares and excess capacity. Now that they are dead and gone, it is time for AC to redouble its efforts against Westjet, and put the Canadian LCC cow to pasture...

Mark_D. · Fri Mar 11, 2005 7:28 pm

Sad news for JetsGo -- especially for the employees, and of those especially the pilots. And least for Michel -- he really comes off looking a bit shady with all this, right down to the company's "midnight announcement" of cessation of operations. sarcastic

The stranded passengers, well sure it's sad there too but then a lot of them should've known there was at least a possibility of this happening, especially if they booked their flights anytime during the past couple weeks or so.

Yyz717--Doing the "right thing" for any business is simply to make money. Picking up stranded Jetsgo passengers for free is not the right thing for AC & WS.

If it's only for a few days to help get stranded folks out of a jam, it might endear those guys to 'em down the road, and so help their own bottom lines in the long run though.

yyz717 · Fri Mar 11, 2005 7:34 pm

What do you want Avek00? A monopoly in Canada with AC having 100%?

1500 Canadians lost their jobs today. Today is the start of March break. Thousands of vacations are ruined and thousands of Cdns are stranded. It is hardly a GOOD day for the Canadian airline industry.

B747-437B · Fri Mar 11, 2005 7:40 pm

Quoting Mark_D. (Reply 46):
Michel -- he really comes off looking a bit shady with all this

With all due respect to Michel, I think he looked more than just a "bit shady" after his last two airline ventures...

avek00 · Fri Mar 11, 2005 7:44 pm

"It is hardly a GOOD day for the Canadian airline industry"

I beg to differ - Jetsgo did little more than harm the other players in the industry by imposing unsustainable fare structures and dumping capacity in mostly already well-served markets. If the loss of 1500 jobs at Jetsgo aids in the preservation or creation of 10,000 careers at Westjet and Air Canada, then there is no logical reason to shed a tear. Ultimately, the flying public suffers MORE in the end from having a weak aviation industry than a strong one.

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