“Flair Airlines is here to stay.” and “Flair is a Canadian airline , full stop” - these statements by the CEO Stephen Jones could not satisfy consumer groups in Canada , those fear the airline closure due to Foreign ownership and control issue tagged to it !
Consumer groups want to protect the rights of the Canadian air travellers , those with summer travel plans with Flair airlines and definitely do not want to be stranded at the gates.
The Canadian Transportation Agency’s preliminary report , submitted March 3rd , briefed that ULCC Flair may not meet Canada’s requirements for Canadian ownership .
Flair may not be "controlled in fact" by Canadians — a violation of federal law — as Miami-based investor 777 Partners holds a "dominant" influence over the airline, found Canadian Transport Agency
However CEO resists the views against his airline ,
"There is zero chance that Flair is losing its license on May 3rd. Flair is here to finally make air travel affordable for all Canadians. The cost of air travel in Canada has been too high for too long, and I think we all know the reason why that is." - Stephen Jones, CEO.
"There is zero chance that Flair is losing its license on May 3rd. Flair is here to finally make air travel affordable for all Canadians. The cost of air travel in Canada has been too high for too long, and I think we all know the reason why that is." - Stephen Jones, CEO. pic.twitter.com/xLi8sOYRlL
— flair airlines (@FlairAirlines) April 21, 2022
Flair has to respond within 60 days time period, that ends by May 3rd. But flair has requested 18 months exemption for the debt restructuring , which is again being contested by different groups.
It is understood that Miami based '777 Partners' owns 25% of Flair, plus has seats on its board , and leases multiple aircraft to Flair. This aspect is being seen critically by some industry watchers in Canada.
Two airline associations representing Air Canada, WestJet and multiple other carriers have called on Transport Minister Omar Alghabra to reject Flair’s exemption request and warned that a green light would set a “ troubling precedent. "
Flair is making changes to prove it's Canadian ownership ,
The changes made by Flair include expanding the board to nine members from five and ensuring seven of them are Canadian,shrinking the number of directors 777 Partners can appoint to two from three and nixing the veto rights that 777 held "but never exercised," Jones said.
Canadian Rules limit the Foreign ownership in any Canadian carrier to 49% , above that individual foreign investment is limited to 25% .
The Ultra Low cost carrier 'Flair' currently operates a fleet of 13 Boeing 737 aircraft, and plans to increase it to 50 aircraft by 2025.
