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Musical Chairs in the Airline Industry

The Canadian airline industry is beginning to resemble a game of musical chairs.


October 3, 2007
By Brian Dunn

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50-jazzWith the announcement of several new startups and the pullback of at
least one earlier entrant, the Canadian airline industry is beginning
to resemble a game of musical chairs. No sooner had Angus Kinnear of
Canada 3000 announced he was ready to relaunch his former carrier on a
smaller scale than he decided to withdraw from the game.

Not surprisingly, Kinnear has landed back on his feet as head of new
charter service USA 3000 Airlines. The Philadelphia-based carrier began
service in December and expects to have five Airbus A320-214s in
service by year-end. USA 3000 offers charter service from Philadelphia
and Newark to Cancun and Punta Cana on behalf of Apple Vacations, one
of the largest tour operators in the US. Both companies are owned by
John Mullen, who was a major shareholder in Canada 3000 before it went
bankrupt in November,hence the name USA 3000.The original plan was to
have Mullen's airline and the revived Canada 3000 working together.

As far as we know,Michel Leblanc is still working on plans to revive
Royal Airlines which he sold to defunct Canada 3000. He said he is
still on target for a spring launch using eight to 10 aircraft in
Eastern Canada, although no further details are available.


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