Discount company GoSarvaq folds 2 weeks before first scheduled flight

GoSarvaq, a company providing seats for sale on passenger flightsbetween Iqaluitand Ottawa at discount prices, announced Friday two weeks before their first scheduled flightthat they will be folding.

The news was delivered in a release by presidentAdameeItorcheakFriday morning.

"This is nota happy note," the release began. "This is the kind of note you hope you never have to write."

"Unfortunately we find ourselves in a position where we have to admit defeat, now, in order to protect competitive pricing for our potential passengers.It is with deep regret we are notifying you toadvise that we will not be able to operate GoSarvaq."

• Discount airline FlySarvaq changes name, delays start date by 2 weeks

• Price war drives down cost of Iqaluit-Ottawa flights this summer

The companywas initially announced as FlySarvaq, a partnership betweenSarvaq Logisticsandcharter airlineNolinor Aviation. It changed its name to GoSarvaq in April, announcing that it wouldl be working withKelowna, B.C.-based Flair Airlines, which also operates national discount airline NewLeaf.

In his statement, Itorcheak cited "drastically" changing market conditions for the decision to close up shop.

"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," he wrote.

Itorcheakdrew parallels between the launch of GoSarvaq and current seat sales from other airlines in the region, saying that if they "were successful at anything at GoSarvaq, it was that our business model resulted in a fair and affordable airfare for the summer months.

"We have demonstrated that this model IS [sic] sustainable. Other carriers have responded showing they CAN [sic]operate at affordable levels.This is a win for Nunavummiut."

According to the release, GoSarvaq will have more information in the coming days and "will be focused on supporting passengers and our staff through this difficult period and transition."