FlightHub granted creditor protection amid travel industry collapse

FlightHub granted creditor protection amid travel industry collapse

MONTREAL — FlightHub Group Inc. is entering creditor protection after a Quebec Superior Court judge granted its application, filed as the travel industry reels from the impact of the COVID-19 pandemic.

The Montreal-based company cites the “catastrophic” consequences of confinement measures and border shutdowns that drove down revenues by more than 90 per cent in less than two months.

FlightHub said in a May 7 court filing that it and five subsidiaries “are no longer able to meet their financial obligations,” with JustFly — its main U.S. brand — owing suppliers $15 million.

The travel firm has temporarily laid off 90 employees in Canada and 18 in the U.S., roughly half of the firm’s pre-coronavirus workforce.

The company warned of potential shortfalls due to credit card chargebacks issued by customers through their banks following the tide of flight cancellations since mid-March.

FlightHub draws its revenues from airline, hotel and car rental commissions, service charges and fees for add-ons such as cabin upgrades and seat selection.

The firm’s current assets include $6.4 million in cash and accounts receivable.

It has cut costs in recent weeks, reducing advertising and marketing expenses by 95 per cent. It also says it has tried to negotiate with vendors and suppliers to revise the size and timing of outstanding payments.

This report by The Canadian Press was first published May 13, 2020.

The Canadian Press

aviation

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Town of Stettler sports fields close for improvements

The Turf Revitalization Plan has been expedited from the initial five-year strategy

UPDATE: Heartland Youth Centre has named the winners in this year’s fundraising raffle

Nan Gardner has won the grand prize of the 2020 GMC Terrain

Still no confirmed active COVID-19 cases in Red Deer, central zone

There are 15 new confirmed cases were in Alberta, the province said Thursday

It’s back to business at Stettler’s Superfluity

This year also marks organization’s 40th anniversary

Alberta RCMP remind citizens to create a nightly #9PMRoutine

‘We are using #9PMRoutine because of its popularity across the globe.’

Alberta Opposition calls on government to consult on provincial parks

Alberta Opposition calls on government to consult on provincial parks

Alberta overhauls real estate regulator in wake of prior dysfunctional board

Alberta overhauls real estate regulator in wake of prior dysfunctional board

Alberta registrar reverses rejection, man gets to have FREE AB licence plate

Alberta registrar reverses rejection, man gets to have FREE AB licence plate

Alberta imposing steep penalties but no charges on first-time impaired drivers

Alberta imposing steep penalties but no charges on first-time impaired drivers

No separate lockup for man beaten after arrest with police vehicle: Nunavut RCMP

No separate lockup for man beaten after arrest with police vehicle: Nunavut RCMP

Limit gun capacity to five bullets, victims group urges Trudeau government

Limit gun capacity to five bullets, victims group urges Trudeau government

RCMP say gunman behind mass killing in Nova Scotia was ‘injustice collector’

RCMP say gunman behind mass killing in Nova Scotia was ‘injustice collector’

Women’s group angered by ‘intoxication’ ruling but concern called overblown

Women’s group angered by ‘intoxication’ ruling but concern called overblown

Most Read