The online travel agency, FlightHub, which has been greatly affected by the drastic downturn in the travel industry, has reached an agreement with the Competition Bureau of Canada. The company which provides online flight bookings, was by the agency of having made a “false or misleading general impression” concerning certain fees it charged its customers.
According to a release made by the company, this announcement of an agreement with the Competition Bureau will probably result in an easier transition “back to normal” for the company post-pandemic. “Many Canadians are relying on us to be around and fully operational when the time comes for them to rebook future travel plans using the value from previously cancelled tickets”, says Christopher Cave, the company’s CEO. “Failure to reach an agreement would have likely resulted in asset liquidation and ceasing of operations. It was imperative for the company and its directors to avoid this scenario at all costs.”
Earlier as was reported, FlightHub had begun major restructuring to survive the pandemic. Based on company filings at the end of April 2020, the company owed more than $15 million dollars to various suppliers and only had approx. $6 million in cash in hand. This meant that the company ultimately needed to seek protection from its creditors under the CCAA (Companies’ Creditors Arrangement Act) as it became insolvent.
Time will tell if Canada’s only fully-owned and operated online travel agency will survive the pandemic. They had made no further information about additional restructuring or credit arrangements regarding the company at the time of the publishing of this article.