Air Georgian (ZX, Toronto Pearson) is planning to file for bankruptcy protection after it published a Notice of Intention to Make a Proposal under subsection 50.4 (1) of Canada's Bankruptcy and Insolvency Act.

The production carrier, whose sole client was Air Canada (AC, Montréal Trudeau) and on whose behalf it carried out Air Canada Express flights, said in a statement dated January 31, 2020, that it had appointed KPMG to be its sole licensed insolvency trustee. No further details were disclosed.

Canada's Financial Post newspaper said unions confirmed that numerous employees had begun receiving layoff notices, despite being promised jobs at other carriers such as Jazz Air (QK, Halifax).

Air Georgian's difficulties come after Air Canada said last year that it would wind up its Air Canada Express capacity purchase agreement (CPA) with the firm in favour of Jazz. According to ch-aviation analysis of FlightRadar24 ADS-B data, the regional carrier concluded operations as Air Canada Express on January 31.

Air Georgian's fleet currently consists of five CRJ100s, three CRJ200s, and ten Beech 1900Ds.