Air Georgian Takes First Bankruptcy Step

Air Georgian appears to be headed for bankruptcy now that its contract with Air Canada has formally wound up. The transition to Jazz Aviation to supply the main line’s regional service was completed on Jan. 31 and the Financial Post is reporting Air Georgian has filed notice of intent to make a proposal under the Bankruptcy and Insolvency Act, the first step in a formal bankruptcy proceeding. The company did not respond to the Post’s request for comment. Air Canada announced in early 2019 that it was ending its relationship with Air Georgian. The Toronto-based carrier flew more than 1.5 million passengers a year feeding the main line in Ontario and Alberta under the name Air Canada Express.

When the announcement was made, Air Georgian assured its employees they would get jobs with Jazz or with Air Canada or Air Canada Rouge. However some Air Georgian staff got layoff notices last week. Unions for both the flight attendants and pilots have said they are monitoring the process and working with the other carriers to ensure the employment of its members. Meanwhile the Airline Pilots Association (ALPA) said it has been told the company intends to restructure and pursue other business opportunities.