KandahAir has started a procedure to ask for protection against its creditors. The airline suffered heavy losses last year and is running out of cash. The news does not come as a surprise, but it remains to be seen whether the court will honour the request. KandahAir employs over 7000 staff.
KandahAir has filed for protection from its creditors for a period of 6 months at the Ottawa commercial court. The move should make it possible to continue the present flight services, and to introduce a "thorough" restructuring operation. If magistrates give it thumbs up, the present 7183 jobs can be saved, claims CEO RuneF.
The Ottawa-based airliner offers flights to most of Canada, and also operates two oversea routes. According to Ottawa Cronicle, several bills haven't been paid lately, with KandahAir receiving a visit from various bailiffs.
"Wrong choices were made"
CEO RuneF told the newspaper that "in the past year many commercial decisions turned out the wrong way. Now a deficit has been created, a gap that can't be bridged."
RuneF concludes that many decisions were unfortunate, and should have been thought over much better. He blames the management for making the wrong choices: "We had 6 or 7 new initiatives. Only 1 was more or less successful, while the others had to be dumped again."