Canada 3000 Ceases Operations

Canada 3000, the second-largest passenger carrier north of the border, today halted all service. Just yesterday, the carrier received approval for a court-supervised restructuring of its finances and business operations and made clear its intention to continue flying. However, Canada 3000 did not receive loan guarantees totaling C$75 million from the Canadian government because it was unable to convince officials that it had developed an effective cost-cutting strategy.

The carrier said it was "highly profitable" in August and that Sept. 10, the day before the terrorist attacks in the United States, was the single-biggest booking day in its history. However, it was unable to recover from the consequences of the events on Sept. 11.

With Canada 3000 out of the picture, the country is left only with dominant Air Canada and low-fare specialist WestJet. WestJet immediately put out a statement of sympathy to Canada 3000 but said it is unable to accept that carrier's tickets. Air Canada, however, is accepting Canada 3000 tickets in an attempt to reaccomodate stranded passengers.