Licence suspended in lawsuit

Page 1

Cree Airways closing down

Cree Airways will be closing down operations Dec. 11 due to the financial problems brought on by a recent lawsuit and also because their operating licence was suspended by Alberta Transportation, says president Roland Calahasen.

"But we're not down and out," he said. "We'll keep working from another office and beat this lawsuit once and for all."

The small Native-operated airline is being sued by former marketing manager and Edmonton city police officer Const. Randolph Kim Klokeid for more than $185,000 for alleged breach of contract. Calahasen says this lawsuit has culminated in the seizure of all assets.

Contacted at his Edmonton home, Klokeid says he is sorry the airline is going out of business and added that it is "in my family's interest that they do not. I certainly did not wish these problems on them but I found I was unable to resolve the issue by other means."

Now, almost two months after the airline stopped its operations to Slave Lake, High Prairie and Wabasca-Desmarais, their operating licence from Transport Canada has been suspended, effective Jan 3.

According to an official the suspension was over the loss of the airline's chief pilot and operations manager. Without a licence, the airline's six Cessna light planes are grounded.

However, Calahasen says he is not concerned over the suspension saying that the licence can be applied for when the lawsuit is settled.

"Right now we cannot get any credit from the banks and all our assets have been seized," he said. "It's all because of this lawsuit because we have to find $20,000 for trust with the courts."

Calahasen and his two partners, brother Dave and Garnet Chalifoux are unable to obtain the necessary trust fund and therefore say they cannot operate.

"We read in Windspeaker that Mr. Klokeid says he invested money into Cree Airways," said Calahasen. "But, he did not and all this will come to light when we come to trial."

Meanwhile Calahasen has been winding the operation down and has laid off all of his original 26 staff members. Treasurer Garnet Chalifoux estimates that since the airline stopped operating in mid-October they have lost about $300,000.

"But the biggest loss is to the people we gave jobs to," says Dave Calahasen. "We are looking at some staff members on UIC or welfare and a few others whoa re looking at bankruptcy because we haven't been able to pay them for the last two months," he said.

However, neither the Calahasens nor Chalifoux is faced with personal bankruptcy at this time. They are however, working with the Native Venture Capital and the Native Economic Development Program in an effort to obtain further funding.

"When we come back, we'll come back big," says Roland Calahasen.