Flair investor sued by aircraft lessors over missed payments

A U.S.-based minority investor with Flair Airlines has been sued by three aircraft lessors for US$30 million after the Canadian low-cost carrier allegedly missed lease payments for four jets, a filing in a London court shows.

As reported by Reuters, Ireland-based Corvus Lights Aviation, MAM Aircraft Leasing 4 and Columba Lights Aviation filed the suit against 777 Partners and its sister company 600 Partners on Dec. 12, which was made public later on.

It's the latest in a dispute over the four jets that were leased to Flair, but were repossessed in March last year by Airborne Capital, which managed the jets on behalf of the three lessors.

"Despite being repeatedly notified of their financial obligations, 777 Partners continued to ignore calls to settle outstanding payments of almost US$30 million," the three lessors have said in a statement.

777 Partners has responded, saying "the English proceedings are likely to be the subject of a stay application given that the position of 777 Partners remains that it is at best premature, and at worst possibly abusing the English Court System,” Reuters reports.

The investor is reportedly backing Flair in a separate legal battle with Airborne in Canada. The airline was not named as a defendant in the case filed in London by the three lessors, reports say. 

Flair had four airplanes grounded last March due to a commercial dispute with its New-York based hedge fund and aircraft lessor.

Several flights were cancelled, impacting some 1,900 Flair customers, just as the busy March Break travel period was ramping up.

Flair’s CEO, Stephen Jones, at the time, admitted the carrier had indeed fallen behind on lease payments after a “tough” winter on some routes.

Jones later accused two major Canadian airlines (which he did not name) of attempting to poach his company’s aircraft, stating that rivals “want us out.”

Flair later filed a $50 million-dollar lawsuit against several plane-leasing companies over what it called the "unlawful" seizure of its aircraft.

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