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Monday,  May 27, 2024 12:02 AM 

Business as usual at Flair after backer cuts stake in airline, says CEO

  • Air
  •   05-03-2024  7:55 am
  •   Pax Global Media

Business as usual at Flair after backer cuts stake in airline, says CEO
(Pax Global Media/file photo)
Pax Global Media

One of Flair Airlines’ biggest backers is reducing its stake in the Edmonton-based budget carrier one day after an Australian airline it owned was forced into insolvency when all of its planes were seized by a lender.

On Wednesday (May 1), Flair revealed that Miami-based 777 Partners would be transferring part of its stake in the airline to an “affiliate” of one of Flair’s lenders, providing new non-binding debt funding.

“We are excited about this strategic evolution and the new financial commitment” said Stephen Jones, CEO and president of Flair Airlines, in a press release. “We are grateful for their support as we chart the course for continued growth.”

READ MORE: Flair unveils winter schedule, announces Toronto-Guadalajara route

Flair said it is gearing up for its “busiest season yet” with summer travel demand soaring.

The airline said this investment underscores Flair’s dedication to providing passengers with travel experiences at competitive fares.

In a statement to the Toronto Star published May 3, Jones said customers can continue to “absolutely book with confidence” following the realignment.

Gearing up for winter

Flair Airlines unrolled its winter schedule earlier this month, putting a spotlight on a new non-stop Toronto to Guadalajara, Mexico route that will take off this fall.

The ultra-low cost carrier (Canada's only, following the demise of Lynx Air) will begin the new route on Sept. 13. 

In addition to the introduction of the Toronto to Guadalajara route, Flair's fall and winter schedule offers access to other sun destinations, like Puerto Vallarta, Cancun, Los Cabos, Phoenix, Las Vegas and Fort Lauderdale, during the winter and access to low fares for domestic routes.

The schedule came on the heels of a report claiming that Flair would fly some 600 fewer flights in March, April and May when compared to the same period of time in 2023.

Stephen Jones denied that its spring schedule had been changed, saying it was set in August 2023 to reflect "a network tailored to meet the wants and needs of Canadian travellers.”

Earlier this year, it was revealed that Flair owes the federal government some $67.2 million in unpaid taxes, but Jones says the airline has a deal with the Canada Revenue Agency to pay the owed amount and that the order will not impact operations.

Meanwhile, the airline says it has made headway in its sustainability goals, revealing it surpasses industry emissions baseline for March. The airline, earlier this week, said it will be disclosing its CO2 emissions on a monthly basis.

Flair also continues to release operational performance reports, with the latest showing that it had a 98.6 per cent completion rate for March.

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