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Monday, 12 November, 2001, 06:02 GMT
Canada 3000 goes bust
Canada 3000 jet
Canada 3000 fleet grounded
Canada's second largest airline, which last week abruptly suspended operations, has been put into bankruptcy and its board of directors has resigned.

"On November 10, 2001, the directors and officers of Canada 3000 resigned," the company said in a statement issued on Sunday.

"Deloitte & Touche has been appointed trustee in bankruptcy. ... (and) is taking steps to preserve the assets and business of the companies pending further discussions with interested stakeholders and further order of the court."

Canada 3000 carried about 5 million passengers a year to 100 destinations worldwide, including Gatwick, Manchester, and Glasgow in the UK.

Grounded

It halted all flights on Friday, hours after winning protection from its creditors.

Like other airlines, it had been hit hard by the slump in air travel after the 11 September attacks on the United States.

Canada 3000's collapse leaves Air Canada as the only major airline flying scheduled flights across the country.

Financial trouble

Canada 3000 successfully applied for legal protection from its creditors on Thursday, and last week secured a C$75m (32m; $46.4m) loan guarantee from the Canadian government.

The carrier reported bookings fell from 95,000 a week before 11 September to between 45,000 and 66,000, depriving it of much-needed cash.

Manchester airport authorities on Friday said they have impounded one of the carrier's jets due to unpaid airport charges.

Canada 3000 has 4,400 employees and a fleet of over 40 aircraft.

Survivor's woes

The country's biggest carrier, Air Canada, has slashed 9,000 jobs, cut capacity by 20% and suspended flights to Scotland to save money following a drastic fall-off in bookings since 11 September.

Air Canada's chief executive, Robert Milton, has warned the outlook for the next six months is "bleak" for the airline, which relies on transborder flights to the US for over 55% of its sales.

 WATCH/LISTEN
 ON THIS STORY
The BBC's Mike Fox
"The end has come suddenly "
See also:

09 Nov 01 | Business
Canada 3000 suspends flights
07 Nov 01 | Business
Belgian national airline goes bust
02 Nov 01 | Business
Air Canada suffers heavy losses
09 Nov 01 | Business
Round-up: Aviation in crisis
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