Planes still grounded

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Financial problems still plague Cree Airways

Cree Airways is still not operational despite the reversal of a default judgment last week.

The airline received a default judgment when it failed to submit a statement of defense to a lawsuit. This judgment has now been overturned and the lawsuit will be brought to court.

The airways is being sued by former marketing manager Kim Klokeid, and two shareholders Marion Klokeid and Mark Samagalski, for more than $180,000 and has had bank accounts frozen and assets seized by the Toronto Dominion bank in Spruce Grove.

In an interview last week Dave Calahasen said the lawsuit levied by Klokeid had prevented the operation of the airline which opened for business last August. However, in an interview this week Klokeid said his lawsuit did not prevent the airline from carrying out its service to northern Alberta.

"I have seized the office equipment, but they (Cree Airways) can still use it," he said. "If other equipment has been seized it has nothing to do with me."

Klokeid said he formed the business plan and agreed to work with the airline as a marketing manager to recover his investment. Klokeid claims he invested about $30,000 plus a year of work and had signed a contract with the directors, Dave and Roland Calahasen and Garnet Chalifoux.

"I am suing for breach of contract," said Klokeid. "I am not trying to break Cree Airways . . . it's in my best interests that they survive."

Cree Airways six Cessna light planes originally served Slave Lake, High Prairie and Wabasca-Desmarais but ceased operation in October, just ten weeks after the company was launched.

In a High Prairie Town Council meeting last month the council expressed concern over the lack of service from Cree Airways saying they had "not heard from Cree since September."

Mayor Don Lorencz said the "council may have got egg on its face" by supporting Cree Airways over Wapiti Aviation and is currently meeting with Wapiti to provide a medivac service.

Contacted at his office Dave Calahasen refused to comment on the financial problems of the airways other than to state the company had still not resumed its service to the north.

"We are negotiating a loan right now," he said. "We'll have a statement later."