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Canada Jetlines becomes latest victim of cutthroat airline sector

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Less than two years after it first hit the skies, Canada Jetlines has grounded its planes and ceased operations amid a cash crisis that caused it to become the third Canadian carrier in less than a year to stop flying.

The low-cost airline, which flew mainly to sun destinations out of Toronto on top of leases and charter trips, said Thursday it failed to find the capital needed to stay afloat and planned to file for creditor protection.

“The company … pursued all available financing alternatives including strategic transactions and equity and debt financings,” said spokeswoman Erica Dymond in a release.

“Unfortunately despite these efforts, the company has been unable to obtain the financing required to continue operations at this time.”

Passengers with existing bookings should contact their credit card company to secure refunds, the company said. “Every effort is being made to assist passengers at this time.”

Trading of the company’s shares on the NEO Exchange was halted late Wednesday afternoon.

The shutdown follows the resignation of four board members on Monday, including chairwoman and CEO Brigitte Goersch.

It signals yet another airline departure from Canadian skies after the closure of Lynx Air in February and budget carrier Swoop last October as concerns about domestic competition persist.

“Any time you lose some competition in the Canadian market it’s kind of sad for the travellers, because it puts less pressure on prices,” said Jacques Roy, a professor of transport management at HEC Montreal business school.

Canada Jetlines accounted for only a fraction of flights to sun destinations, he qualified.

The shutdown also underscores the challenges of running an airline in a vast country with a diffuse population and only a few key air travel hubs.

“Every time a new player wants to enter the market, there’s only one certainty: they’re going to be losing money for the first eight, nine, 10 months at least, and perhaps even more. So you need a good bank account,” said Roy, noting that leisure travellers are particularly price-sensitive.

“The major players will play the game of meeting your fares. And if you reduce your fares below your cost, then that’s a recipe for failure in the short term,” he said.

“It’s a tough market.”

Until Thursday, Canada Jetlines was flying a few dozen flights per month from Toronto to Miami and Orlando, Fla., as well as Cancun, Mexico, according to aviation tracking firm Cirium.

It also flew charter flights, including for three Canadian Football League teams. The airline signed contracts with the Ottawa Redblacks, Hamilton Tiger-Cats and Toronto Argonauts that saw it haul players to select away games last season. The Redblacks contract was a three-year deal that may no longer be fulfilled.

Thursday’s halt leaves only one budget carrier left in Canada — Flair Airlines — alongside the other major players: Air Canada, WestJet, Porter Airlines, Air Transat and the WestJet-owned Sunwing Airlines.

Last month, Competition commissioner Matthew Boswell launched a market study of domestic airline service amid passengers’ ongoing frustration with prices and quality.

Canada Jetlines, which has struggled to get more than a handful of planes off the ground since its inaugural flight in September 2022, faced a series of hiccups even before this week’s turbulence.

On June 30, Eddy Doyle stepped down as CEO after taking on the role in 2021.

In January 2023, it pressed pause on domestic routes as the carrier refocused on sun destinations and leasing its planes, but said at the time it aimed to resume in-country flights that fall.

In October 2019, the Mississauga, Ont.-based company announced it was postponing its planned December launch and laying off most employees after failing to secure the required financing and losing investment partners. The delay wound up dragging on for nearly three years, thanks in part to the COVID-19 pandemic.

That 2019 setback followed seven years of fundraising and despite Ottawa lifting the foreign ownership ceiling on Canadian airlines to 49 per cent from 25 per cent in 2018, allowing for a wider pool of investors.

Canada Jetlines lost $14.2 million over the 12 months between March 2023 and last March, despite eking out a profit in one of the quarters, according to financial filings. Quarterly revenues ranged between $8 million and $12 million.

In May, the company secured a $2-million loan from Square Financial Investment Corp., a Mississauga-based holding company owned by board member Reg Christian, who was named executive vice-president as a result.

Canada Jetlines had a $38.3-million deficit and negative working capital of $14.9 million as of March 31.

As recently as May 10, the company said in financial statements it planned to grow to seven planes by year’s end and 15 aircraft by 2026.

This report by The Canadian Press was first published Aug. 15, 2024.

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Advocates urge Ontario to change funding for breast prostheses, ostomy supplies

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TORONTO – Advocates for breast cancer survivors and people who have had ostomy surgeries, such as colostomies, are calling for changes to the way an Ontario program covers certain medical devices, saying it leaves them paying a lot of money out of pocket.

The Assistive Devices Program partly funds the cost of equipment, such as wheelchairs, insulin pumps and hearing aids, for people with long-term disabilities.

For most of the devices covered under the program, the province pays 75 per cent of the cost, but the funding for breast prostheses and ostomy devices is set at specific dollar amounts, which users and advocates say amounts to far less than 75 per cent of the total price.

People who have had a mastectomy due to breast cancer, for example, can get reconstruction surgeries that are covered by the provincial health plan.

But if they don’t qualify for the surgeries or want them, they can instead get an external breast prosthesis that fits inside special mastectomy bras. The province currently covers $195 for one prosthesis, but they can cost $400 to $500, advocates say.

That amount of $195 was set back in 2006. The Ministry of Health reviewed it in 2011, but made no change. It is now outdated, said Vanessa Freeman, a board member of the group Speaking of Breasts — Advocacy for Solutions.

“It’s not really keeping up with the times, like the cost of living right now. Things have changed substantially,” she said.

Freeman owns Pink Ribbon Boutique, a mastectomy bra boutique, and said she gets some customers to donate used prostheses back to the store.

“We just try to do whatever we can to help, but it’s not really sustainable or truly enough,” she said.

When Freeman’s mother, a three-time breast cancer survivor, discovered she had a gene mutation that had put her at a higher risk for developing breast cancer, Freeman got tested.

In 2016, she found out she had the same mutation. She decided to have a prophylactic double mastectomy.

There are physical implications to losing your breasts, she said, such as the pinched nerves and the neck and shoulder pain that result from a sudden shift in the balance of your body.

The mental implications, she added, are harder to put into words.

“From a young age, I think as women, we’ve kind of been told there’s certain things that make us feminine, those are the things that define us — so breasts, hair, these kinds of things,” Freeman said.

“I wanted to believe that I was bigger than that or that it was some sort of badge to not be affected by it, but … it really hits you in a lot of ways that you don’t necessarily anticipate, even to this day. I have done a lot of work to try to make peace with the way that my body is, and I think I’ve come a long way.”

Therapy has really helped, but that also comes with an additional cost, she said. “That’s not always available to people.”

Kelly Wilson Cull, director of advocacy for the Canadian Cancer Society, said people should not have to pay out of pocket for products and services that they need in their cancer recovery.

“In a country like Canada, people often think that we have universal health care and that cancer wouldn’t come with a bill, but that’s certainly not the case,” she said.

“Getting back to a new normal, and getting back to work and sort of reintegrating into your life after cancer, just having those tools to build self esteem and build normalcy is so critical to the huge emotional journey that comes with a cancer diagnosis.”

The Ostomy Canada Society also said it hears from people in Ontario who have had ostomy surgeries — procedures that create a new opening to bypass problems with the bladder or bowel — who have trouble affording the supplies they need, such as the pouches that collect waste.

The assistive devices program pays $975 per ostomy per year, but the average annual cost for supplies is around $2,500, said Ian MacNeil, who does advocacy and government relations for the society.

“Frequently they have to make decisions on paying the rent, sometimes, it’s, ‘What can I get at the grocery store and not get because I’ve got these supplies to purchase,'” he said.

“So it can be very, very problematic.”

The last update to the amount of funding came in 2015, MacNeil said. People who receive social assistance or live in a long-term care home receive $1,300 per ostomy per year.

“We have been hammering the Ontario government for a change, but we haven’t had any success thus far,” MacNeil said.

A Ministry of Health spokesperson said price and funding reviews for breast prostheses and ostomy supplies in the Assistive Devices Program take into account the average annual client cost.

“No additional reviews are planned for this time,” W.D. Lighthall wrote in a statement. “Grant amounts for ADP devices are based on stakeholder input, client input and jurisdictional reviews.”

This report by The Canadian Press was first published Oct. 18, 2024.



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US to probe Tesla’s ‘Full Self-Driving’ system after pedestrian killed in low visibility conditions

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DETROIT (AP) — The U.S. government‘s road safety agency is investigating Tesla’s “Full Self-Driving” system after getting reports of crashes in low-visibility conditions, including one that killed a pedestrian.

The National Highway Traffic Safety Administration says in documents that it opened the probe on Thursday after the company reported four crashes when Teslas encountered sun glare, fog and airborne dust.

In addition to the pedestrian’s death, another crash involved an injury, the agency said.

Investigators will look into the ability of “Full Self-Driving” to “detect and respond appropriately to reduced roadway visibility conditions, and if so, the contributing circumstances for these crashes.”

The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.

A message was left early Friday seeking comment from Tesla, which has repeatedly said the system cannot drive itself and human drivers must be ready to intervene at all times.

Last week Tesla held an event at a Hollywood studio to unveil a fully autonomous robotaxi without a steering wheel or pedals. Musk, who has promised autonomous vehicles before, said the company plans to have them running without human drivers next year, and robotaxis available in 2026.

The agency also said it would look into whether any other similar crashes involving “Full Self-Driving” have happened in low visibility conditions, and it will seek information from the company on whether any updates affected the system’s performance in those conditions.

“In particular, this review will assess the timing, purpose and capabilities of any such updates, as well as Telsa’s assessment of their safety impact,” the documents said.

Tesla has twice recalled “Full Self-Driving” under pressure from the agency, which in July sought information from law enforcement and the company after a Tesla using the system struck and killed a motorcyclist near Seattle.

The recalls were issued because the system was programmed to run stop signs at slow speeds and because the system disobeyed other traffic laws. Both problems were to be fixed with online software updates.

Critics have said that Tesla’s system, which uses only cameras to spot hazards, doesn’t have proper sensors to be fully self driving. Nearly all other companies working on autonomous vehicles use radar and laser sensors in addition to cameras to see better in the dark or poor visibility conditions.

The “Full Self-Driving” recalls arrived after a three-year investigation into Tesla’s less-sophisticated Autopilot system crashing into emergency and other vehicles parked on highways, many with warning lights flashing.

That investigation was closed last April after the agency pressured Tesla into recalling its vehicles to bolster a weak system that made sure drivers are paying attention. A few weeks after the recall, NHTSA began investigating whether the recall was working.

The investigation that was opened Thursday enters new territory for NHTSA, which previously had viewed Tesla’s systems as assisting drivers rather than driving themselves. With the new probe, the agency is focusing on the capabilities of “Full Self-Driving” rather than simply making sure drivers are paying attention.

Michael Brooks, executive director of the nonprofit Center for Auto Safety, said the previous investigation of Autopilot didn’t look at why the Teslas weren’t seeing and stopping for emergency vehicles.

“Before they were kind of putting the onus on the driver rather than the car,” he said. “Here they’re saying these systems are not capable of appropriately detecting safety hazards whether the drivers are paying attention or not.”

The Canadian Press. All rights reserved.

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Moe visiting Yorkton as Saskatchewan election campaign continues

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Saskatchewan Party Leader Scott Moe is set to be on the road today as the provincial election campaign continues.

Moe is set to speak in the city of Yorkton about affordability measures this morning before travelling to the nearby village of Theodore for an event with the local Saskatchewan Party candidate.

NDP Leader Carla Beck doesn’t have any events scheduled, though several party candidates are to hold press conferences.

On Thursday, Moe promised a directive banning “biological boys” from using school changing rooms with “biological girls” if re-elected.

The NDP said the Saskatchewan Party was punching down on vulnerable children.

Election day is Oct. 28.

This report by The Canadian Press was first published Oct. 18, 2024.

The Canadian Press. All rights reserved.



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