Flair Airlines ownership structure under investigation

[dapaterson]

Canadian regulators are conducting a formal investigation of Flair Airlines, whose ownership is nominally 25% American, but that same group leases them all their aircraft and hold three of five seats on the board of directors.

Canadian Low-Cost Carrier Flair Under Investigation Over Foreign Ownership

Canadian authorities are investigating whether Flair is operating within strict ownership guidelines.

simpleflying.com

 

[Weinie]

Canadian regulators are conducting a formal investigation of Flair Airlines, whose ownership is nominally 25% American, but that same group leases them all their aircraft and hold three of five seats on the board of directors.

Canadian Low-Cost Carrier Flair Under Investigation Over Foreign Ownership

Canadian authorities are investigating whether Flair is operating within strict ownership guidelines.

simpleflying.com

Of course. Can’t have a low-cost airline competing with the AC gouging. That’s un-Canadian.

 

[OldSolduer]

Of course. Can’t have a low-cost airline competing with the AC gouging. That’s un-Canadian.

I was thinking of AC in the 70s when a start up airline trying to compete with AC would be bought out. AC cannot stand competition.

 

[dapaterson]

Who knew that if you decline to pay your bills that people leasing you equipment might seize that equipment?

In its first public comments on the matter Tuesday, Airborne Capital Ltd. said in a statement to Global News that Flair was “regularly in default” and failed to make payments when due over a five-month period, despite numerous notices and “direct and regular contact” with the airline.

Those missed payments added up to millions of dollars, the lessor said — disputing statements from Flair’s chief executive this week that it owed about $1 million total.

“Terminating an aircraft lease is always a last resort, and such a decision is never taken lightly,” Airborne said.

“In this case, following numerous notices to Flair, it again failed to make payments when due and Airborne took steps to terminate the leasing of the aircraft.”

Flair aircraft seizures came after months of missed payments and defaults, lessor says | Globalnews.ca

Airborne Capital Ltd. also rejected claims from Flair's CEO that it was already shopping the seized aircraft to its rivals and that downplayed the amount of debt it owed.

globalnews.ca