Canada 3000
Encyclopedia
Canada 3000 Inc. was a Canadian
discount charter airline offering domestic and international flights. It was the largest charter airline in the world at the time of its operation, with over 90 destinations worldwide, although it changed to scheduled service in 2000 after the Canadian Airlines
and Air Canada
merger. Canada 3000 competed with Air Canada, WestJet
, and fellow charter airline Air Transat
. In November 2001, the airline went out of business after a sharp decline in revenues following the September 11, 2001, terrorist attacks
in the United States. There have been several attempts to restart the airline since then. The airline was headquartered in Etobicoke, Toronto
; the headquarters was located in the City of Etobicoke before that city's merger into Toronto.
, initially for charter service to lease some of its airplanes for Canadian charter travel. The airline was denied license to operate by the National Transport Agency NTA because of the control and ownership of the UK firm. Air 2000 dropped out of an ownership position, and the airline started operations in December 1988. In May 1989, by order of the NTA, it changed its name to 'Canada 3000.'. The next year was acquired to Vacationair and was created a subsidiarie in Mexico
with the Aerofiesta name.The company's owners were the Deluce family (25%), chairman John Lecky(45%) and Adventure Tours (30%). Following the demise of Ward Air, the company's goal was to become Canada's largest charter carrier, a position it attained in 1991.
In 1998, co-founder and CEO Angus Kinnear was the recipient of the Tony Jannus Award
for his contributions to commercial air transportation.
In 2000, Canada 3000 went public, raising $30 million in an IPO. In January 2001, Canada 3000 bought charter carrier Royal Aviation
or Royal Airlines of Montreal, Quebec for $84 million. The company also acquired the Royal Airlines' cargo operation, renaming it Canada 3000 Cargo. In March 2001, it also took over CanJet Airlines, for $7.5 million in stock. In May 2001, following the merger of Canadian Airlines International with Air Canada, Canada 3000 also started operating scheduled flights. In October 2001, one month before its demise, Canada 3000 became the first airline to operate non-stop service from North America to India
.
On November 8, 2001 the company suddenly collapsed with no warning for travellers or employees. The company filed for bankruptcy, citing a downturn in air travel during the weeks following the September 11, 2001 terrorist attacks in the United States. The fleet was left grounded at various airports around the world, leaving 50,000 vacationers stranded. September 10, 2001 had been a record booking day, but within a few days, air traffic had declined by 50%. The airline was offered a $75 million loan guarantee from the Canadian government under the condition of a 'viable business plan' being produced. By November 7, 2001, the airline had $260 million in debt, and only $1.49 million in cash. In secret, it had applied to the Canada Labour Board for permission to cut labour costs by 30% by closing its Royal division immediately. The Board would not approve without union agreement. Union offers to cut 700 pilots and steward positions did not provide enough savings immediately and the airline applied for bankruptcy protection on November 8, while it planned to continue flying. By the end of the day, airport authorities in Toronto and St. John's, Newfoundland has seized planes under court authority and the company directors decided to cease operations.
Out of bankruptcy, the Canada 3000 Cargo air cargo operation, which was still operating, was sold off and became Cargojet Airways
, run by former Canada 3000 executive Ajay Virmani. In 2002, Michel Leblanc
, the former owner of Royal Airlines and later a director with Canada 3000 went on to form another scheduled discount airline, Jetsgo
, which lasted almost three years before it too collapsed and filed for bankruptcy protection on March 11, 2005.
In 2005 a group of investors had planned to launch a new Canada 3000, with two Boeing 757-200
aircraft (ref: Flight International, April 2005).
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
discount charter airline offering domestic and international flights. It was the largest charter airline in the world at the time of its operation, with over 90 destinations worldwide, although it changed to scheduled service in 2000 after the Canadian Airlines
Canadian Airlines
Canadian Airlines International Ltd. was a Canadian airline that operated from 1987 until 2001. The airline was Canada's second largest airline after Air Canada, and carried more than 11.9 million passengers to over 160 destinations in 17 countries on five continents at its height in 1996...
and Air Canada
Air Canada
Air Canada is the flag carrier and largest airline of Canada. The airline, founded in 1936, provides scheduled and charter air transport for passengers and cargo to 178 destinations worldwide. It is the world's tenth largest passenger airline by number of destinations, and the airline is a...
merger. Canada 3000 competed with Air Canada, WestJet
WestJet
WestJet Airlines Ltd. is a Canadian low-cost carrier that provides scheduled and charter air service to 71 destinations in Canada, the United States, Mexico and the Caribbean. Founded in 1996, WestJet is currently the second largest Canadian air carrier, behind Air Canada, operating an average of...
, and fellow charter airline Air Transat
Air Transat
Air Transat is an airline based in Saint-Laurent, Montreal, Quebec, Canada, operating scheduled and charter flights, serving 60 destinations in 25 countries. The airline is owned and operated by Transat A.T. Inc. During the summer season its main destinations are Europe and in the winter season the...
. In November 2001, the airline went out of business after a sharp decline in revenues following the September 11, 2001, terrorist attacks
September 11, 2001 attacks
The September 11 attacks The September 11 attacks The September 11 attacks (also referred to as September 11, September 11th or 9/119/11 is pronounced "nine eleven". The slash is not part of the pronunciation...
in the United States. There have been several attempts to restart the airline since then. The airline was headquartered in Etobicoke, Toronto
Toronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...
; the headquarters was located in the City of Etobicoke before that city's merger into Toronto.
History
The airline was created in 1988 by British airline Air 2000Air 2000
Air 2000 was a British charter airline that operated for 17 years between 1987 and 2004. The airline was renamed as First Choice Airways in 2004 which lasted until TUI Travel PLC merged with First Choice Holidays PLC in 2008 and as a result First Choice Airways was merged with Thomsonfly to create...
, initially for charter service to lease some of its airplanes for Canadian charter travel. The airline was denied license to operate by the National Transport Agency NTA because of the control and ownership of the UK firm. Air 2000 dropped out of an ownership position, and the airline started operations in December 1988. In May 1989, by order of the NTA, it changed its name to 'Canada 3000.'. The next year was acquired to Vacationair and was created a subsidiarie in Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
with the Aerofiesta name.The company's owners were the Deluce family (25%), chairman John Lecky(45%) and Adventure Tours (30%). Following the demise of Ward Air, the company's goal was to become Canada's largest charter carrier, a position it attained in 1991.
In 1998, co-founder and CEO Angus Kinnear was the recipient of the Tony Jannus Award
Tony Jannus Award
The Tony Jannus Award recognizes outstanding individual achievement in scheduled commercial aviation by airline executives, inventors and manufacturers, and government leaders. The award is conferred annually by the Tony Jannus Distinguished Aviation Society and was first bestowed in 1964 in Tampa,...
for his contributions to commercial air transportation.
In 2000, Canada 3000 went public, raising $30 million in an IPO. In January 2001, Canada 3000 bought charter carrier Royal Aviation
Royal Aviation
Royal Aviation was the parent of Canadian charter airline Royal Airlines, which was based at Dorval Airport. The airline was acquired in 2001 by Canada 3000, which in turn went bankrupt in the months following the events of September 11, 2001....
or Royal Airlines of Montreal, Quebec for $84 million. The company also acquired the Royal Airlines' cargo operation, renaming it Canada 3000 Cargo. In March 2001, it also took over CanJet Airlines, for $7.5 million in stock. In May 2001, following the merger of Canadian Airlines International with Air Canada, Canada 3000 also started operating scheduled flights. In October 2001, one month before its demise, Canada 3000 became the first airline to operate non-stop service from North America to India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
.
On November 8, 2001 the company suddenly collapsed with no warning for travellers or employees. The company filed for bankruptcy, citing a downturn in air travel during the weeks following the September 11, 2001 terrorist attacks in the United States. The fleet was left grounded at various airports around the world, leaving 50,000 vacationers stranded. September 10, 2001 had been a record booking day, but within a few days, air traffic had declined by 50%. The airline was offered a $75 million loan guarantee from the Canadian government under the condition of a 'viable business plan' being produced. By November 7, 2001, the airline had $260 million in debt, and only $1.49 million in cash. In secret, it had applied to the Canada Labour Board for permission to cut labour costs by 30% by closing its Royal division immediately. The Board would not approve without union agreement. Union offers to cut 700 pilots and steward positions did not provide enough savings immediately and the airline applied for bankruptcy protection on November 8, while it planned to continue flying. By the end of the day, airport authorities in Toronto and St. John's, Newfoundland has seized planes under court authority and the company directors decided to cease operations.
Out of bankruptcy, the Canada 3000 Cargo air cargo operation, which was still operating, was sold off and became Cargojet Airways
Cargojet Airways
Cargojet Inc. is a scheduled cargo airline based in Mississauga, Ontario, Canada. It operates cargo services in Canada and internationally, as well as full aircraft charters. Its main base is John C Munro Hamilton International Airport...
, run by former Canada 3000 executive Ajay Virmani. In 2002, Michel Leblanc
Michel Leblanc
Michel Leblanc is a Canadian "serial entrepreneur" responsible for starting up seven failed airlines in 20 years, including Quebecair, Royal Aviation and, the most recent airline to go bankrupt, Jetsgo on March 11, 2005.-References:...
, the former owner of Royal Airlines and later a director with Canada 3000 went on to form another scheduled discount airline, Jetsgo
Jetsgo
Jetsgo Corporation was a Canadian low-cost carrier based in the Saint-Laurent area of Montreal. Jetsgo served 19 destinations across Canada, 10 destinations in the United States, and 12 scheduled weekend-charter destinations in the Caribbean...
, which lasted almost three years before it too collapsed and filed for bankruptcy protection on March 11, 2005.
In 2005 a group of investors had planned to launch a new Canada 3000, with two Boeing 757-200
Boeing 757
The Boeing 757 is a mid-size, narrow-body twin-engine jet airliner manufactured by Boeing Commercial Airplanes. Passenger versions of the twinjet have a capacity of 186 to 289 persons and a maximum range of , depending on variant and cabin configuration...
aircraft (ref: Flight International, April 2005).
Fleet
Canada 3000 operated the following fleet:| Aircraft | Notes | |
|---|---|---|
| Airbus A310-300 | 2 scrapped, 2 remain in service with other airlines |
|
| Airbus A319-100 | To other Canadian airline, SkyService Skyservice Skyservice Airlines Inc. was a charter airline based in the Etobicoke area of Toronto, Ontario, Canada. It employed more than 2000 people. Skyservice Airlines Inc. flew within Canada and to the U.S., Caribbean, Mexico, Israel and Europe. During the summer Skyservice sold tickets to Europe from... . |
|
| Airbus A320-200 | To various other airlines, including Monarch Airlines Monarch Airlines Monarch Airlines, often shortened to and trading as Monarch, is a British charter and scheduled airline based at London Luton Airport in Luton. It is one of the United Kingdom's largest charter airlines, operating to Europe, the United States, the Caribbean, India and Africa, serving mainly leisure... & SkyService |
|
| Airbus A330-200 | 3 sent to Volare Airlines Volare Airlines Volare S.p.A., as Volareweb.com, was a low cost subsidiary of the old Alitalia-LAI. Its head office was located in Area Tecnica Sud of Terminal 1 of Milan-Malpensa International Airport, in Ferno, Varese, Italy, and it ceased activity with this name since 12 January 2009... |
|
| Airbus A340-300 | To Air Tahiti Nui Air Tahiti Nui Air Tahiti Nui is French Polynesia's flag carrier airline with its head office in the Immueble Dexter in Papeete, Tahiti. It operates international services for the low and high-end leisure travel markets. Its main base is Faa'a International Airport, Papeete.- History :Air Tahiti Nui was... . |
|
| Boeing 737-200 | Most in service with other airlines | |
| Boeing 757-200 | To Other airlines, mainly Air 2000 Air 2000 Air 2000 was a British charter airline that operated for 17 years between 1987 and 2004. The airline was renamed as First Choice Airways in 2004 which lasted until TUI Travel PLC merged with First Choice Holidays PLC in 2008 and as a result First Choice Airways was merged with Thomsonfly to create... (First Choice Airways) |
External links
- Canada 3000 (Archive)
- Canada 3000 Former Fleet Detail