Jetsgo, Canada's third-biggest airline, grounded its fleet after fuel prices rose by two-thirds in the past year and regulators began a safety probe of its operations. Shares of WestJet Airlines Ltd., Jetsgo's main rival, had their largest gain.
The shutdown stranded 17,000 customers, many of whom were preparing to travel to Florida for spring break. Jetsgo also flew to New York and Los Angeles and had a 7 percent market share in Canada, where Air Canada, an ACE Aviation Holdings Inc. unit, and WestJet are the biggest carriers.
If you have tickets on JetsGo, time to make other plans.
A good friend of mine who lives in Calgary just emailed me about this...she is buying a car in Vancouver...she called various airlines, the ticket she wanted yesterday for 58CDN is 125 today!
Something that made me laugh...in Saturday's newspaper (the Montreal Gazette) there was an ad for Jetsgo boasting about their cheap prices. Gotta love pre-paid advertising.
On a serious note, market forcasters are predicting an even greater rise in ticket prices now that Jetsgo is gone. Now the other airlines don't feel like they have to compete with their psychotically low prices, they'll be jacking up prices perminantly.
I feel bad for all those who lost their jobs.