Yarmouth airline grounded after depleting $2M fund

The only airline flying regularly out of southwestern Nova Scotia is suspending operations.

Starlink Aviationannounced Thursday that it doesn't have the money to keep flying out of Yarmouth beyond Monday, which means eight people are out of a job.

The airline received $2 million in provincial funding in January to help it operate for five years, but the money has already run out.

Brenda Libby, the airline's regional sales manager, said Starlink would have more time to grow the business if it had more funding.

"If we had another $1 million in the project, you know, we'd be around for a while," she said.

The funding was approved by the previous Progressive Conservative government, which said the move would finally bring daily air service back to Yarmouth and create new business opportunities in the area.

Starlink launched its twice daily runs to Halifax and Portland, Maine, in February. The airline said ithas hadnearly 6,000 passengers since then.

Business was good, said Libby.

"It's heartbreaking, but our final flight on Monday we have a full flight coming back from Portland. And our final flight from Halifax into Yarmouth is going to be a full flight as well," she said.

The airline said it had no choice but to suspendservice becauselast-minute attempts to secure short-term government funding failed.

Starlink estimates it will take two to three years to get the business going.

Acting PC Leader Karen Casey calls Starlink's departure a "devastating" blow to the region. She urges the new NDP government to do what it can to help the airline.

"I'm not saying that you continually put money into something that's a losing venture, but I'm not sure that that airline had enough time to build up the service that it needed in order to be viable," said Casey.

Starlink said travellers who bought tickets for future flights will receive a full refund within three business days.