Go Sarvaq (Iqaluit) management has cancelled its launch plans two weeks before its inaugural flight. Adamee Itorcheak, president of the Canadian virtual carrier, said in a statement that rapidly changing market conditions had rendered their proposed business model uneconomical.
"The GoSarvaq business model, which was worked on for over a year, was supported by a strong, solid business plan. That plan took into consideration changes in market pricing but we think its safe to say, no one predicted [sic] the market conditions changing as drastically as they did."
"We have been open and honest when we have said our model is only sustainable in a competitive environment. When that market sees pricing that has never before been seen in at least the last 10 years, the environment is no longer competitive."
Formerly Fly Sarvaq (Iqaluit), Go Sarvaq had planned to charter a B737-400 from Flair Airlines (F8, Kelowna) for flights from Ottawa International to Halifax via YFB beginning May 20.
