TORONTO – Canada-based budget airline SkyGreece, which has sought protection under Canada’s Bankruptcy and Insolvency Act, appeared in court in Toronto on September 8 and gained a a stay in the proceedings against it by the Canadian Transportation Agency (CTA) until September 28, 2015, subject to the condition, among other things, that SkyGreece and the Trustee (EY): “shall do everything reasonably in their power to identify and quantify passengers’ claims in the insolvency process.”
Gabor Lukacs, an air passenger rights advocate who lives in Canada and has been closely following SkyGreece, whose suspension of operations on August 27 following by bankruptcy proceeding has stranded thousands in Greece, told TNH “The Court was very concerned about the fate of stranded passengers and the rights of passengers who incurred out-of-pocket expenses.”
August 28 Lukacs made an emergency application to the CTA, requesting that the airline be ordered to help stranded passengers and on September 2, 2015, the CTA issued a decision requiring SkyGreece to explain why the airline should not be ordered to assist stranded passengers, Lukacs told TNH.
CTA’s investigation of the airline continues despite its insolvency proceedings and SkyGreece has named the CTA and Lukacs as respondents in its filings with the court.
In a release, the airline declared, “It was determined by the company’s board of directors that as a result of the company’s current financial situation, seeking protection under the Bankruptcy and Insolvency Act (BIA) (Canada) would be in the best interests of the company and all of its stakeholders,” the airline said. “This was a very difficult decision for SkyGreece.”
Ernst & Young Inc. has been appointed trustee and will monitor and assist the company during the process.
SkyGreece owns one aircraft, a B767-300(ER).