- Some Flair Airlines travellers’ flights were cancelled this weekend after some of the company’s aircraft were seized by creditors
- The budget airline brand had four of its leased Boeing 737 planes seized in Toronto, Edmonton, and Waterloo
- Flair responded by saying the aircraft seizure was due to a “commercial dispute” with “a New York-based hedge fund”
- The company has three aircraft on standby which have allowed it to resume normal operations
- Airline carriers such as Air Canada (AC) are also seeing a hit in sales as the sector tries to recover from the pandemic
- Shares of Air Canada (AC) ended the day trading at $19.14 per share
This weekend offered a less than relaxing experience for some Flair Airlines travellers after several aircraft were seized by creditors.
Reportedly, the budget airline brand had four of its leased Boeing 737 planes seized in Toronto, Edmonton, and Waterloo causing some flight cancellations.
Dispute was known but outcome was a surprise
In a public statement on Saturday, Flair responded by saying the aircraft seizure was due to a “commercial dispute” with “a New York-based hedge fund,” but it did not expect the seizure beforehand.
Flair launched in 2004 and began offering regularly scheduled service in 2018. Back in September, it shared plans to expand its fleet and become Canada’s third-largest domestic airline by this summer. As a part of this plan, it had three spare aircraft ready for use, allowing it to resume operations after the weekend’s events.
However, around the same time last year Flair was being investigated by the Canadian Transportation Agency (CTA), which had issued a preliminary finding that the airline might not be Canadian because of the control of its parent company, 777 Partners.
At the end of the investigation, the CTA declared Flair was in fact a Canadian company and allowed to retain its licence after making certain changes to its board, leasing arrangement, and financing sources.
Flair is not alone
Flair isn’t the only airline experiencing issues. The travel airline industry is still seeing a rocky recovery due to residual COVID-19 effects. Larger airlines, such as Air Canada (AC), are still experiencing challenges due to a post-pandemic world and news of recent lost baggage.
AC has also shared its 2023 strategy to grow and recover from pandemic sales hits, but the sector continues to see drops from events similar to Flair’s.
Shares of Air Canada (AC) ended the day trading at $19.14 per share.