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

Red Deer churches easing back into services

“To be able to do that again was just incredible”

Sylvan Lake man charged with child luring

A 38-year-old Sylvan Lake man has been charged with child luring. Sylvan… Continue reading

Spike in bike thefts prompts Red Deer RCMP warning

Nearly a dozen bikes reported stolen in Red Deer in last week

Huawei executive loses court ruling, extradition case continues

Judge says allegations against Meng Wanzhou could constitute a crime in Canada

Opinion: COVID-19 reveals folly of performance-based funding for universities

The COVID-19 pandemic has exposed the folly of performance-based funding schemes for… Continue reading

Michael Dawe: Great Depression teaches us the lessons of debt relief

There is a lot of wellfounded concern about the enormous, worldwide impact… Continue reading

Hunting Hills High School valedictorian hopes classmates find their own successes

At your typical high school graduation, hugs and handshakes are the norm,… Continue reading

Hong Kong is a train wreck I can’t bear to watch

“We are the meat on the chopping board,” said Martin Lee, founder… Continue reading

RDGCC named top 100 Callaway club fitter in North America

One local golf course is being recognized among the best on the… Continue reading

Non-binary athletes navigating Canadian sport with little policy help

Playing men’s and women’s hockey can feel like a minefield for Kat… Continue reading

Canadian international Vanessa Gilles signs new deal with France’s Bordeaux

Canadian international defender Vanessa Gilles has signed a contract extension with France’s… Continue reading

Most Read