Canada’s ultra-low-cost-carrier Flair Airlines had four aircraft seized on Saturday as a result of a commercial dispute with a New-York based hedge fund and aircraft lessor Airborne Capital Ltd. Though there are no immediate comments from the lessor, it is being learnt that the carrier had dues of over $1 million in payments.
Passengers travelling with Flair Airlines were seen inconvenienced on Saturday after the seizure of the leased aircraft , leading to grounding in Toronto, Edmonton and Waterloo, Ont.
Describing the situation as a “commercial dispute , a statement from flair termed the move by “a New York-based hedge fund” to take the aircraft “extreme and unusual,” specifically when carriers in the region are bracing up for a busy summer.
However, the carrier has said, it would use “additional fleet capacity” to lessen the affects on passengers, adding it did not foresee any major disruptions to its route map.
Some insiders suggest that the lessor might have got better opportunity and rates for the leased aircraft compared to current rates, as most of the Flair Airlines fleet were leased during 2021-2022 period , when lease rates were down amid Covid battering of airtravel.
Company spokesman Mike Arnot said a number of Flair flights were cancelled Saturday morning, but the company had three spare aircraft to backfill those flights.
Arnot says passengers travelling in the next 72 hours will either be accommodated on Flair flights or another airline at Flair’s expense if a Flair flight isn’t available.
An update from the carrier later Saturday added that customers can also rebook their own travel and receive a reimbursement within seven days.
A person familiar with the matter but who was not authorized to speak publicly about it said the payments for the affected planes were only a few days behind and the amount owed was small relative to Flair’s overall revenue.
“We are truly very sorry passengers were impacted today, and are taking steps to get them on their way with minimal disruption. This includes repositioning our spare aircraft to support operations,” the company’s statement said.
One of those seized planes could be seen sitting on the tarmac at the Region of Waterloo International Airport on Saturday with covers over the aircraft’s engines, which is sign of a long term preservation.
The leasing company , which Arnot confirmed was Airborne Capital , did not immediately respond to an email seeking comment.
Flair’s statement said the airline has been involved in “ongoing communications” with the leasing company and “payment has been initiated.”
In many cases, it's being said, passengers booked for the affected flights have received an email from the company outlining the flight’s cancellation due to unanticipated maintenance delays within the airline’s control, but required for safety.
Canadian Aviation is never easy for money making by the Airlines. The Flair Airlines aircraft seizure ironically comes 18 years to the day after the Jetsgo collapse. Flair should remain in business to serve the Canadians.
