...7114 The Ethics of Bankruptcy: Jetsgo Corporation Case 2: The Ethics of Bankruptcy: Jetsgo Corporation The discount airline Jetsgo Corporation began operations in June 2002. Within two-and-half years it grew to become Canada's third-largest airline, moving approximately 17,000 passengers per day on its fleet of 29 airplanes, 15 of which were company-owned Fokker F100s. With 1,200 employees, the company serviced 20 locations in Canada, a dozen in the Caribbean, and 10 in the United States. Jetsgo was a private company owned by Michel Leblanc. Leblanc had lived his life around airplanes. His father owned a flight school; he learnt to fly at 16. In his twenties he was an aircraft salesman; in 1978 he co-owned an eleven airplane forest-spraying business. From 1985 to 1990 he was a partner in Intair a regional airline in Quebec. In 1991, he and a new partner started Royal Aviation Inc., which he sold in 2001 for $84 million in stocks to Canada 3000. Although he was subsequently sued by Canada 3000 for providing inaccurate financial information, the case was never tried because Canada 3000 went into bankruptcy protection in November 2001. In June 2002 he launched Jetsgo. On Friday March 11,2005. Just before the busy Spring-break travel week, Jetsgo entered bankruptcy protection stranding thousands of passengers who could not return home and annoying those who could not leave on their spring-break holiday. Throughout its short life, Jetsgo was plagued with both financial and...
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...PART ONE Introducing The Contemporary Business World In the Opening Cases in Chapters 1 to 5, you will read about five situations that may seem to have little in common at first glance: Canadian megaprojects that focus on the extraction of oil and nickel, the importance of productivity for our standard of living, the unethical behaviour of some business managers, entrepreneurs starting new businesses, and the exporting of Canadian goods and services to other countries. All of these situations, and many more that are described in this text, have a common thread—they all demonstrate the key elements of business as well as the excitement and complexity of business activity. Each case tells a part of the story of our contemporary business world. Part One, Introducing the Contemporary Business World, provides a general overview of business today, including its economic roots, the environment in which it operates, the importance of entrepreneurship, the various forms of ownership of business firms, the globalization of business, and the ethical problems and opportunities facing business firms. ■ We begin in Chapter 1, Understanding the Canadian Business System, by examining the role of business in the economy of Canada and other market economies. We also present a brief history of business in Canada. Then, in Chapter 2, Understanding the Environments of Business, we examine the external environments that influence business activity. These include the economic, technological...
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