Skyservice charter airlines will be forced into receivership Wednesday as a result of a near $9-million debt to its long-term partner, Sunquest Vacations, a division of Thomas Cook.
The Toronto-based charter service, whose primary partners are Sunquest, and the merged operations of Sunwing and Signature Vacations, is expected to appear in court later today as a result, a source close to the matter confirmed Wednesday. Roughly 860 jobs are expected to be lost as a result, the source said.
All Skyservice flights, including those scheduled for Wednesday, have been cancelled through to April.
The charter airline is just the latest to fall victim to a hyper-competitive market in the Canadian travel tour business that has been suffering from an excess of capacity for years.
Last year, Conquest Vacations also declared bankruptcy.
Scott Armstrong, a spokesman for the Greater Toronto Airport Authority, said they had yet to hear from the charter airline. One Skyservice flight did arrive at Toronto’s Pearson International Airport Tuesday morning from Mexico, he said. But another, meant to fly out at 10:30 a.m. was cancelled.
Neither Skyservice, nor Sunquest Vacations, could be immediately reached for comment on the report.
More to come
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