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Monday,  July 15, 2024 7:40 AM 

CTA to investigate Flair for compliance with Canadian ownership rules

  • Air
  •   05-15-2024  3:05 pm
  •   Pax Global Media

CTA to investigate Flair for compliance with Canadian ownership rules
Pax Global Media

The Canadian Transportation Agency (CTA) said it will investigate Flair Airlines for compliance with Canadian ownership rules, according to reporting by the Toronto Star.

In an email to the Star, Vincent Turgeon, a spokesman for the federal regulator, said the CTA was looking into an announcement made by Flair on May 1 that one of its backers, 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” Stephen Jones, CEO and president of Flair Airlines, said in a press release at the time. “We are grateful for their support as we chart the course for continued growth.”

In a statement made to the Star on May 3, Jones said customers could continue to “absolutely book with confidence” following the realignment.

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

Earlier this month, Flair said it was gearing up for its “busiest season yet” with summer travel demand soaring, and it released its winter schedule, including a new non-stop Toronto to Guadalajara that will begin on Sept. 13.

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

Jones denied the airline’s spring schedule had 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 also revealed that Flair owes the federal government some $67.2 million in unpaid taxes.

Jones said at the time that the airline had already made a deal with the Canada Revenue Agency to pay the owed amount and that the order would not impact operations.

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