Jetsgo founder plans revival (seriously)
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Jetsgo founder plans revival (seriously)
globeandmail.com
Jetsgo founder plans revival Aims to sell planes to cut debt, use leased aircraft; sources peg June 25 as target date By BRENT JANG
Wednesday, March 30, 2005 Updated at 5:08 AM EST
From Wednesday's Globe and Mail
Jetsgo Corp. founder Michel Leblanc has devised detailed plans to get his insolvent carrier back in the air this summer, relying on aircraft sales to slash debt and counting on eight leased planes for the revival.
Less than three weeks after leaving thousands of travellers stranded, Mr. Leblanc has crafted an ambitious timetable to resurrect the airline, setting June 25 as the target for a rejuvenated Jetsgo's first flights using leased Boeing MD-83s, sources said yesterday.
"He's hoping to salvage some type of airline business because that's all he knows. He's trying to reinvent himself one more time and he would only use leased aircraft," said one lawyer familiar with Jetsgo's comeback strategy under bankruptcy protection.
Mr. Leblanc confirmed yesterday that he and his management team are preparing plans to resume operations beginning in the busy summer season with a slimmed-down airline, but he declined to comment on specific target dates.
He said the silver lining from the bad publicity for Jetsgo is that Canadian consumers know the brand instantly, so the challenge will be to market a comeback theme.
"I admit that the Jetsgo brand has blemishes, but its awareness has picked up.
"So, there's a downside and a good side," Mr. Leblanc said.
Jetsgo's fleet of 29 aircraft consists of 15 company-owned Fokkers, parked in Quebec City, and 14 leased Boeing MD-83s -- eight in Toronto and the rest located in Vancouver and Montreal.
A key to rescuing the carrier will be persuading the lessors that it's best to stick with Jetsgo, rather than finding another airline to pick up the MD-83 leases.
Mr. Leblanc, who hopes to persuade creditors and consumers to give him another chance, said he expects that Jetsgo will sell off the 15 Fokkers and liquidate other assets under the supervision of court-appointed monitor RSM Richter Inc. Hours before filing for bankruptcy protection on March 11, Jetsgo supervisors directed the bulk of Fokker pilots to fly the aircraft to Quebec City, under the guise of maintenance checks, for safe haven from creditors.
Toronto law firm Cassels Brock & Blackwell LLP is the lead representative of the aircraft lessors. Eight to 14 MD-83s could form Jetsgo's reduced fleet, sources said.
Under the proposal to breathe new life into Jetsgo, the carrier's lawyers are expected next week to ask the Quebec Superior Court to extend the April 11 deadline for Jetsgo to file a plan of arrangement to reorganize the airline.
The Montreal-based company, controlled by Mr. Leblanc, would then hold discussions with creditors in the hope of filing its restructuring plan by May 15 and have creditors review that proposal in the first week of June, sources said.
The Jetsgo president said no decision has been made yet on whether to change Jetsgo's name and whether the restructured business should be a chartered or commercial carrier.
When the discount airline filed under the Companies' Creditors Arrangement Act nearly three weeks ago, 17,000 passengers were left stranded and more than 1,200 employees lost their jobs.
The Greater Toronto Airports Authority, overseer of Pearson International Airport, would want "stringent financial rules" in place before approving any Jetsgo reorganization plan, GTAA spokeswoman Connie Turner said.
She said Jetsgo decided against declaring bankruptcy, preferring to go the CCAA route to buy itself some time to regroup.
"Frankly, we were quite surprised that they went under CCAA, considering that they shut down and they let their employees go," Ms. Turner said.
"I just think it would be a hard sell for the whole industry just because of the damage to their reputation and leaving a lot of creditors hanging out there."
The GTAA says it's owed $5.5-million by Jetsgo. The largest single creditor is credit card clearing agent Moneris Solutions Corp., which is owed at least $30-million.
Jetsgo would require safety approvals from Transport Canada, but Mr. Leblanc expressed confidence that he could get the green light from Ottawa since Jetsgo already holds certain operating certificates and licences.
A job fair, organized by the Toronto Board of Trade, will be held today for former Jetsgo employees. Mr. Leblanc said his scaled-down airline would need a smaller work force, and there are provisions to recall staff who belonged to the Teamsters Canada union, including flight attendants and ground crew.
One industry source said that while creditors are well aware of Mr. Leblanc's track record of heading or being closely linked with four airlines that didn't survive, the aviation entrepreneur could still win over some jaded creditors by stressing the prospect of redemption.
Jetsgo lost more than $55-million in the eight months prior to its grounding and has $108-million in liabilities, but Mr. Leblanc insists that with a new business model, a turnaround is in the offing.
"If we can craft a plan that makes sense commercially and brings back a business that's profitable, why not? We're looking at our strengths and weaknesses. We have to act responsibly. There's a good management
Jetsgo founder plans revival Aims to sell planes to cut debt, use leased aircraft; sources peg June 25 as target date By BRENT JANG
Wednesday, March 30, 2005 Updated at 5:08 AM EST
From Wednesday's Globe and Mail
Jetsgo Corp. founder Michel Leblanc has devised detailed plans to get his insolvent carrier back in the air this summer, relying on aircraft sales to slash debt and counting on eight leased planes for the revival.
Less than three weeks after leaving thousands of travellers stranded, Mr. Leblanc has crafted an ambitious timetable to resurrect the airline, setting June 25 as the target for a rejuvenated Jetsgo's first flights using leased Boeing MD-83s, sources said yesterday.
"He's hoping to salvage some type of airline business because that's all he knows. He's trying to reinvent himself one more time and he would only use leased aircraft," said one lawyer familiar with Jetsgo's comeback strategy under bankruptcy protection.
Mr. Leblanc confirmed yesterday that he and his management team are preparing plans to resume operations beginning in the busy summer season with a slimmed-down airline, but he declined to comment on specific target dates.
He said the silver lining from the bad publicity for Jetsgo is that Canadian consumers know the brand instantly, so the challenge will be to market a comeback theme.
"I admit that the Jetsgo brand has blemishes, but its awareness has picked up.
"So, there's a downside and a good side," Mr. Leblanc said.
Jetsgo's fleet of 29 aircraft consists of 15 company-owned Fokkers, parked in Quebec City, and 14 leased Boeing MD-83s -- eight in Toronto and the rest located in Vancouver and Montreal.
A key to rescuing the carrier will be persuading the lessors that it's best to stick with Jetsgo, rather than finding another airline to pick up the MD-83 leases.
Mr. Leblanc, who hopes to persuade creditors and consumers to give him another chance, said he expects that Jetsgo will sell off the 15 Fokkers and liquidate other assets under the supervision of court-appointed monitor RSM Richter Inc. Hours before filing for bankruptcy protection on March 11, Jetsgo supervisors directed the bulk of Fokker pilots to fly the aircraft to Quebec City, under the guise of maintenance checks, for safe haven from creditors.
Toronto law firm Cassels Brock & Blackwell LLP is the lead representative of the aircraft lessors. Eight to 14 MD-83s could form Jetsgo's reduced fleet, sources said.
Under the proposal to breathe new life into Jetsgo, the carrier's lawyers are expected next week to ask the Quebec Superior Court to extend the April 11 deadline for Jetsgo to file a plan of arrangement to reorganize the airline.
The Montreal-based company, controlled by Mr. Leblanc, would then hold discussions with creditors in the hope of filing its restructuring plan by May 15 and have creditors review that proposal in the first week of June, sources said.
The Jetsgo president said no decision has been made yet on whether to change Jetsgo's name and whether the restructured business should be a chartered or commercial carrier.
When the discount airline filed under the Companies' Creditors Arrangement Act nearly three weeks ago, 17,000 passengers were left stranded and more than 1,200 employees lost their jobs.
The Greater Toronto Airports Authority, overseer of Pearson International Airport, would want "stringent financial rules" in place before approving any Jetsgo reorganization plan, GTAA spokeswoman Connie Turner said.
She said Jetsgo decided against declaring bankruptcy, preferring to go the CCAA route to buy itself some time to regroup.
"Frankly, we were quite surprised that they went under CCAA, considering that they shut down and they let their employees go," Ms. Turner said.
"I just think it would be a hard sell for the whole industry just because of the damage to their reputation and leaving a lot of creditors hanging out there."
The GTAA says it's owed $5.5-million by Jetsgo. The largest single creditor is credit card clearing agent Moneris Solutions Corp., which is owed at least $30-million.
Jetsgo would require safety approvals from Transport Canada, but Mr. Leblanc expressed confidence that he could get the green light from Ottawa since Jetsgo already holds certain operating certificates and licences.
A job fair, organized by the Toronto Board of Trade, will be held today for former Jetsgo employees. Mr. Leblanc said his scaled-down airline would need a smaller work force, and there are provisions to recall staff who belonged to the Teamsters Canada union, including flight attendants and ground crew.
One industry source said that while creditors are well aware of Mr. Leblanc's track record of heading or being closely linked with four airlines that didn't survive, the aviation entrepreneur could still win over some jaded creditors by stressing the prospect of redemption.
Jetsgo lost more than $55-million in the eight months prior to its grounding and has $108-million in liabilities, but Mr. Leblanc insists that with a new business model, a turnaround is in the offing.
"If we can craft a plan that makes sense commercially and brings back a business that's profitable, why not? We're looking at our strengths and weaknesses. We have to act responsibly. There's a good management
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If you're smart you won't fly for this guy, nor work in any capacitiy nor buy any tickets from this four time loser who seems to have delusions of trying it for a fifth time. 
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Jetsgo founder plans revival
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My god, he's almost pathological this Leblanc. He's deluded - I heard a comment today which I will para-phrase..."I know the Jetsgo brand has taken a knocking, but we've received a lot of PR and can make this work. Insane.
Let's hope the lads and lassies at the job fair for ex-Jetsgo employees at Pearson Airport proceed with alternative plans PDQ...
So many hurdles to get the green smiley face into the air, and with his reputation in tatters, why would Leblanc bother ?
Let's hope the lads and lassies at the job fair for ex-Jetsgo employees at Pearson Airport proceed with alternative plans PDQ...
So many hurdles to get the green smiley face into the air, and with his reputation in tatters, why would Leblanc bother ?
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Apparently because it's the only thing he does(n't) know how to do.
Remember, 17,000 pax stranded, 1200 employees immediately out of a job, 100,000 ticket holders out of pocket
(80% estimated to be able to get refunds from credit card companies - so credit card companies out of pocket), lies to pilots about an AWD to get the F100s back to Quebec City.
At one point in this airlines operation we were freighting their baggage to destination because the MD83s couldn't manage it with the bags on board. "Welcome to Toronto and thank you for flying Jetsgo. Your bags will be dispensed on carousel 14 in about an hour and a half after Air Canada arrives."
A dismal effort at an airline. Hated the smilie face as well.
Remember, 17,000 pax stranded, 1200 employees immediately out of a job, 100,000 ticket holders out of pocket
(80% estimated to be able to get refunds from credit card companies - so credit card companies out of pocket), lies to pilots about an AWD to get the F100s back to Quebec City.
At one point in this airlines operation we were freighting their baggage to destination because the MD83s couldn't manage it with the bags on board. "Welcome to Toronto and thank you for flying Jetsgo. Your bags will be dispensed on carousel 14 in about an hour and a half after Air Canada arrives."
A dismal effort at an airline. Hated the smilie face as well.
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Ok, i am not sure when the Canadian Govt. will sit and ask why someone who has put several airlines in the ground, made money from them, leaving creditors and passengers out of pocket and committed fraud 4 times, is still on the streets of Montreal.
How has this man been allowed to get away with it. I could spend hours writing to you all explaining in detail what he has done in his aviation career. So the question that has to be asked, if i can explain it, why can't the Canadian Govt see it.
I think there are questions that need to be answered much higher in govt. before Canadian aviation will improve. Lets face it, there is only one real money making airline in Canada. we all know who that is and there is no reason why others cannot make money in an honest manner!
I am very confused as to how the aviation industry in Canada has survived thus far, AC... BILLIONS in Debt, most corporations would have shut their doors by now, C3 another victim of fraud, Royal ditto.....etc and the list goes on and on.
i think everyone in aviation in Canada has to ask why this is happening because the only ones suffering are the employees and the travelling public, not the owners and certainly not the govt.
I wish you all make your own futures by asking some questions to the powers that allow this to happen to you.
I wish you all the best!!
Unbelieveable
How has this man been allowed to get away with it. I could spend hours writing to you all explaining in detail what he has done in his aviation career. So the question that has to be asked, if i can explain it, why can't the Canadian Govt see it.
I think there are questions that need to be answered much higher in govt. before Canadian aviation will improve. Lets face it, there is only one real money making airline in Canada. we all know who that is and there is no reason why others cannot make money in an honest manner!
I am very confused as to how the aviation industry in Canada has survived thus far, AC... BILLIONS in Debt, most corporations would have shut their doors by now, C3 another victim of fraud, Royal ditto.....etc and the list goes on and on.
i think everyone in aviation in Canada has to ask why this is happening because the only ones suffering are the employees and the travelling public, not the owners and certainly not the govt.
I wish you all make your own futures by asking some questions to the powers that allow this to happen to you.
I wish you all the best!!
Unbelieveable
