Air Canada T.AC

wouldn't risk summer travel

[Veecee1]

A Canadian aviation industry expert says purchasing Flair tickets could be a risky decision right now as the airline’s issues raise concerns about potential bankruptcy before the year’s end.
John Gradek, a supply networks lecturer at McGill University, told Daily Hive that Flair’s behaviour is concerning and reminds him of the weeks leading up to the closures of other low-cost carriers in Canada.“I don’t think they’re gonna make it to Thanksgiving,” he said. “The financial crisis will catch up to Flair.The airline may get enough customers through the busy summer travel season to pay some bills, but Gradek thinks they’ll start running into trouble in mid-September when Canadian domestic travel slows down again.

How risky is it to buy a ticket through Flair?

“Oh, I think it’s risky,” he said. “It reminds me of a week or two before Lynx disappeared.”

“Where there’s smoke, there’s fire,” Gradek said, arguing that if you look at the recent flight cancellations, it shows something more problematic.

That’s not the only issue the company is facing. In January, it was revealed that Flair owed $67.2 million in unpaid taxes connected to import duties on 20 Boeing 737 planes that are part of its fleet. CEO Stephen Jones told Daily Hive that the airline has worked out a repayment plan with the CRA.

In addition, the company was fighting a financial services company for allegedly withholding $25 million, arguing it had no right to do so. It has since withdrawn its legal action.

[stwatcher]

Flair will not make it through the summer

[Tempo1]

Usually, the foreclosures happens at the end of the cashinflow period. Creditor let go the cash inflow before moving to have a reduced unsecured position.  The critical period is the end of this period when companies are face to a dry one. So, my prediction is an end of operations in september. It could be before if the booking are weak and the clients confidence is too much altered to have

[alive9well]

Agreed, like restaurants usually shutter up and leave their suppliers with unpaid bills around mid January, after the busier cash flow year end season is done. Flair should Flare by September end.

[alive9well]

Another possibility, quite probable is that a creditor closer to the top of the heap may pull the rug out from under so they can secure their claim. and not wait it out to the end.

[JuIieRichards]

They are talking about FLAIR in posts below. AC is moving up, expanding international travel for its best clients to where they want to go direct. Best managed airline in North America.