Skyservice Goes Under
Posted March 31, 2010 9:32 am.
This article is more than 5 years old.
Skyservice is out of business.
The 24-year-old company went into receivership Wednesday, prompting the charter airline to send some staff packing and cancel remaining flights.
“It’s hard to accept. It’s hard to wrap your head around it and realize that, tomorrow, there’s no work,” flight attendant Marlene Bresnahan said.
“Skyservice Airlines today announced the shutdown of its operations following the appointment of a receiver by the Ontario Superior Court of Justice,” the airline said in a statement.
The company reportedly owes its partner, Sunquest Vacations, a Thomas Cook Group company, $9 million. Consumers also cut back on vacation spending due to the recession, which also hurt the airline’s bottom line. Skyservice had also, unsuccessfully, attempted to negotiate cost-cutting measures with employees.
“The loss of Skyservice is regrettable for us and the Canadian travel industry,” Thomas Cook North America CEO Michael Friisdahl said in a statement.
“However, we have long-established relationships with a number of flying partners and we are able to turn to these partners to quickly and seamlessly arrange alternate flights for our customers scheduled to travel with Skyservice.”
As reported on Breakfast Television, several Skyservice employees contacted CityNews Wednesday morning claiming they’d been informed to clear out their desks and that the airline wouldn’t be operational Wednesday.
Reports suggest 860 workers will be affected by the shutdown.
Skyservice says it has plans in place to accommodate current customers. The airline is encouraging customers to contact their travel agents or tour operators.
“Skyservice Airlines and the receiver are committed to winding up the business in an orderly and responsible manner,” the airline’s statement said. “The company and the receiver will continue to treat employees and other stakeholders fairly and in a transparent manner throughout this process.”
Conquest Vacations abruptly shut down its services nearly a year ago, citing the global recession for its financial woes.
