ABBOTSFORD, B.C. -- Swiftair, Canada's only all-cargo national airline, was placed in receivership because federal approval of a new investor took too long, a company spokesman said Wednesday.
Swiftair, which employed 100 people in six offices across Canada, was shut down Tuesday and a receiver was appointed because it was not able to bring in a 'crucial' new investor to keep the firm afloat, David Goodwillie said.
Pacific Western Airlinesoffered in March to acquire up to 40 percent of Swiftair.
Conair Aviation Ltd., which owned Swiftair, was told by one government source that federal approval for the offer could take six to nine months, Goodwillie said.
But Swiftair, which began operations in September 1980, needed assurances that approval would be given within 90 days in order to keep operating, Goodwillie said.
Swiftair lawyer Mark Soule said the airline fell into receivership because of the 'inability or the failure of federal regulatory agencies to give strong assurances to the investors that the transaction would be approved. There isn't any doubt about that.'
The company's two DC-8s, which flew cargo between Montreal, Toronto, Winnipeg, Edmonton, Calgary and the B.C. headquarters, have been grounded at Abbotsford, about 50 kilometers east of Vancouver.
