canada 3000 files for bankruptcy

CANADA 3000 has grounded its fleet after filing for bankruptcy protection.

The stricken airline – Canada’s second-largest carrier – was planning to stem daily losses of £300,000 in the wake of Septmber 11 by laying off 1,500 staff and cutting capacity by 30%, but unions rejected the proposals.

An airline spokesman said: “Canada 3000 regrets to advise that it will cease flying operations effective 9 November 2001. We are therefore unable to transport passengers to their destinations and recommend that they seek an alternative means of travel.

“We very much regret this action and wish to thank our passengers for their patronage in the past.”

The decision to stop operations was made despite official approval for the airline to restructure its operations under court supervision.