Security

Douglas Crozier's picture

"Who Takes the Haircut When a Carrier Fails?"

When Canada 3000 ("C3") failed in late 2001, it owed CDN$34m. to various Canadian Airport Authorities and to NAV Canada ("Authorities"). Its planes were leased from a variety of legal titleholders ("Owners"). The Authorities exercised statutory powers to seize the C3 aircraft on account of the debts. The Owners went to Court to recover "their" planes. The Authorities sued the Owners, contending they were jointly and severally liable with C3 for the debts.

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