OTTAWA (Reuters) - Privately held Skyservice Airlines said on Wednesday it had shut down its operations after a Canadian court appointed a receiver.
The charter airline said it was unable to maintain its business due to changes in the Canadian vacation tour market and high debt.
The company canceled all remaining flights scheduled to depart Canada in April, including a flight scheduled to leave on Wednesday for the Dominican Republic.
Skyservice has operated aircraft for Sunquest Vacations and other tour operators between Canada and destinations in the Caribbean and Mexico since 1995, Sunquest said.
Earlier this year, Skyservice received financial assistance from Sunquest owner Thomas Cook Canada Inc, Sunquest said.
Skyservice was unable to restructure it business and by March 31 could no longer meet its financial obligations, said Sunquest, which has organized replacement flights for all passengers affected by the suspension of operations.
Skyservice was founded in 1986 and, according to its website, employed over 1,200 staff and flew more than 20 commercial aircraft to destinations in Canada, the United States, the Caribbean, Mexico and Europe.
Reporting by Susan Taylor and Jeffrey Jones in Calgary; editing by Rob Wilson
Reuters Canada
