SkyGreece Airlines files for protection after halting operations stranding hundreds

MONTREAL — SkyGreece Airlines has filed for creditor protection in Canada, a week after halting operations and standing hundreds of passengers.Lawyers for the Toronto-based company notified the Canadian Transportation Agency on Thursday that it plans to make a proposal to creditors under the Business and Insolvency Act.It says the court-supervised restructuring proceedings “will ensure that, over the long term, all stakeholders, including passengers, are treated equitably and receive fair compensation for their claims.”Canada Jetlines, aspiring no-frills airline, reaches settlement with former partnerCanJet suspends flying operations, looks for new business planThe move stays agency proceedings against the company resulting from a claim filed by passenger rights advocate Gabor Lukacs. He had been seeking an order to protect and compensate stranded passengers, which ceased operations Aug. 27 after more than a week of disrupted service.Lukacs had called on the agency to order SkyGreece to rebook its stranded passengers on other airlines and put up $8.7 million in security to cover passenger claims.Ernst & Young has been named as monitor, which will communicate with creditors and customers of SkyGreece, which was founded in 2012 and started operations in 2014 with one plane. read more