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How Avtrac Delivered a Seamless Aircraft Redelivery Following the Canada Jetlines Bankruptcy

  • abelusko
  • Apr 29
  • 2 min read

When Canada Jetlines declared bankruptcy in early 2025, lessors and stakeholders faced a race against time to secure their aircraft assets and preserve their value. With more than CAD 118 million owed to creditors and operations ceasing, the risk of technical records loss, regulatory non-compliance, and asset deterioration grew with each passing day.


Avtrac was trusted to lead the technical recovery and transition efforts for three different lessors — each holding an individual Airbus A320-200 on lease with the now-insolvent airline.


Managing Complexity in a Distressed Environment

Aircraft repossessions are always challenging, but bankruptcy proceedings add an extra layer of legal, regulatory, and logistical complexity. Access to records is limited. Aircraft may be grounded or stored without proper oversight. Cross-border relocation plans must navigate regulatory hurdles across multiple jurisdictions.


Avtrac’s mission was clear:

  • Secure full technical records (both hardcopy and digital) to preserve back-to-birth traceability.

  • Maintain airworthiness compliance throughout the relocation process.

  • Manage the safe, efficient relocation of each aircraft to selected MRO facilities in North America and Europe.

  • Support multi-lessor needs simultaneously while minimizing disruption and protecting asset value.


Proven Expertise and Global Execution

Leveraging decades of aviation asset management experience, Avtrac deployed expert teams onsite to Canada Jetlines’ Toronto office, rapidly securing and digitizing vital technical records in cooperation with the appointed administrator, BDO.

At the same time, Avtrac coordinated ferry flight preparations, inspections, and regulatory approvals, ensuring that all three Airbus A320-200 aircraft were relocated safely and compliantly.


Through its global network of more than 200 technical experts and multi-jurisdictional CAMO approvals, Avtrac delivered a fully managed, turnkey solution — giving each lessor peace of mind and a clear path to quickly remarket the aircraft.


Results that Protected Value

Thanks to Avtrac’s precision, responsiveness, and trusted expertise, the repossession project achieved outstanding outcomes:


  • 100% of critical technical records recovered and audited

  • Zero regulatory non-compliance issues during aircraft relocation

  • Streamlined transition to MROs, enabling immediate onward marketing preparations


In an environment where aircraft value can rapidly erode, Avtrac’s strategic management ensured these assets remained fully protected and transition-ready.


Discover the Full Story

Want to see how Avtrac navigated this high-stakes repossession and delivered success under pressure?


🔗 Download the full case study here and learn how expert technical management protects your aviation investments: Avtrac - Expert Recovery in a Distressed Market: Aircraft Repossession Case Study




 
 
 

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