Flair Airlines CEO accuses rival of working with U.S. company that seized its leased aircraft
Flair Airlines CEO accuses rival of working with U.S. company that seized its leased aircraft
After a weekend of cancelled flights, the CEO of Flair Airlines came out swinging Monday, accusing one of Canada’s two major airlines of working with a U.S. hedge fund that seized four Flair jets over the weekend.
Stephen Jones admitted Flair was several days behind on a $1 million lease payment to Airborne Capital, but said he was shocked when the hedge fund took the unusual step of seizing four Flair aircraft on Saturday. With those planes suddenly unavailable, 1,900 passengers had their flights cancelled with no notice, at the start of spring break.
Jones says he suspects Airborne Capital was working with one of Canada’s major air carriers to undermine Flair.
“We have come in and upset the cozy duopoly, and as a consequence people want us out of business,” said Jones. “We do believe there were negotiations going on behind the scenes between one of the majors and the lessor to, you know, hurt Flair by offering above-market rates for the aircraft we have been leasing.”
Jones didn’t provide evidence of the alleged collusion, or name the airline he suspects of working with Airborne Capital to lease Flair’s planes at a higher rate.
A spokesperson for the lessor denied the CEO's theory in a written statement on Tuesday.
"Airborne Capital strongly rejects the allegations that have been made by Flair Airlines in recent days in relation to four Airborne-managed aircraft," the spokesperson said.
"The leasing of the four Airborne-managed aircraft was terminated following a five-month long period, during which Flair was regularly in default of its leases by failing to meet its payments when due, with payment arrears reaching millions of dollars."
The company also wrote that it has a "legal obligation to seek to mitigate losses."
In a separate statement to CTV News, Air Canada said it “has not spoken to any of the lessors nor have they come to Air Canada offering their aircraft.” WestJet did not respond to a request for comment.
Jones insists there is more to the story than Flair not paying its bills on time. “There are airlines out there that don’t want Flair to exist, and it doesn’t surprise me. We are a challenger to the status quo,” he said.
As for the weekend flight cancellations, Jones said 420 of the 1,900 impacted passengers were able to re-book within 72 hours. The remainder have be offered flights at a later date, or a full refund.
“We have special call lines going on, we have set up a dedicated team to manage this,” said Jones. “I know I have seen some go to the media where passengers felt they didn’t know what was going on, and weren’t getting proper communication. We are doubling down on that, trying to make sure people know what’s going on.”
Flair has brought in three backup aircraft and was able to return to its full schedule by Sunday. But plans for summer expansion may be reduced if it can’t negotiate with Airborne Capital for access to the four seized jets.
“The behaviours to date, I would say that is a tough road to see them back down. This hedge fund behaviour makes negotiations tough,” said Jones.
While the sudden cancellations may have hurt the brand, Jones says passengers are safe booking with Flair. “People can continue to feel confident with their existing travel plans, and can book new travel with confidence.”
Canada's special rapporteur on foreign interference David Johnston calls the allegations swirling around his objectivity 'quite simply false,' and said Tuesday he plans to push ahead with his work, launching public hearings next month
Conservative Leader Pierre Poilievre says Prime Minister Justin Trudeau should see to it that mass murderers serve their entire sentences in maximum-security prison.
The number of interactions between killer whales and humans has increased alarmingly in recent years. CTVNews.ca asked an expert to explain the reasons behind the increase in interactions, explore the types of encounters, and examine the implications for both humans and killer whales.
The PGA Tour ended its expensive fight with Saudi Arabia's golf venture and now is joining forces with it, making a stunning announcement Tuesday of a merger that creates a commercial operation with the Public Investment Fund and the European tour.
While the Liberals insist a Pacific Rim trade bloc should welcome anyone who meets its standards, an internal document suggests Prime Minister Justin Trudeau wants China kept out.
The federal government has given an updated deal to a public-service union that signed its collective agreement in the fall in order to match deals reached with the Public Service Alliance of Canada during a strike this spring.
Prince Harry entered a courtroom witness box Tuesday, swearing to tell the truth in testimony against a tabloid publisher he accuses of phone hacking and other unlawful snooping.
Canada's emergency preparedness minister says images of wildfires burning across the country are some of the most severe ever witnessed in Canada and the current forecast for the next few months indicates the potential for continued higher-than-normal fire activity.
Many Canadian parents are stretching themselves thin — even going as far as to postpone their retirement in some cases — in order to help pay for their children’s education, according to a new survey.
The province is revealing its housing cards, as 37 more municipalities have been identified as the next group that will be required to create housing targets in their communities to help combat the ongoing housing shortfall.
A wildfire that has been burning out of control on Vancouver Island since Sunday morning is now estimated to cover approximately 20 hectares of dense forest near Port Alberni.
Calgary-based Cenovus Energy says it has safely restarted a portion of its production that was shut down because of the threat of wildfires in northern and central Alberta.
Innisfail RCMP say an officer was attacked by the driver and passenger of a truck they'd stopped on suspicion of impaired driving on Saturday, but the accused's lawyer has a different story of the encounter.
Police in Australia are investigating the suspicious death of a woman who used to live in Surrey, BC, after her body was found in her apartment on the outskirts of Sydney.
Mounties in the town of McLennan, Alta. are hoping members of the public can help them identify two men who tried to steal a bank machine from the local ATB Financial.
Mounties in Peace River Alta. are asking residents to check their "businesses, homes, sheds and outbuildings" for any sign of 13-year-old Rocky Conrad Cardinal.
The actions of the teen who repeatedly slashed a North York massage parlour receptionist, killing her and injuring her manager, were an act of terrorism, an Ontario Supreme Court Justice found Monday in a 'historical' decision in Canada.
A grieving widow whose husband was run over and killed by a speeding OPP officer can't believe the force told her it won't hold a public hearing into the case because it decided the misconduct was 'not serious.'
One Quebec city that had been threatened by approaching wildfires has lifted an evacuation order, but other parts of the province continue to deal with out-of-control blazes that are taxing firefighting resources.
A 53-year-old man was shot and killed in the Montreal suburb of Dorval on Monday afternoon. A source told CTV News that the victim is Francesco Del Balso, who has links to Montreal's Mafia.
Investigators out of the Quebec police organized crime task force were in Kanesatake and St. Jerome on Tuesday conducting raids and interviewing potential suspects.
A Ukrainian woman who now lives in Winnipeg is hoping one day she will be able to bring her husband's remains to her new home, a place he hoped one day he too would be able to call home.
While Saskatoon Tribal Council (STC) publicly mulled moving its downtown emergency shelter to a location on 20th Street near the city's core, city documents reveal the wellness centre's present Fairhaven area location was heavily favoured early in the process.
Canada's emergency preparedness minister says images of wildfires burning across the country are some of the most severe ever witnessed in Canada and the current forecast for the next few months indicates the potential for continued higher-than-normal fire activity.
It’s been 79 years since the war effort known as ‘D-Day,’ which eventually led to the liberation of western Europe during World War II. The day was marked with a service in Normandy with the Royal Regina Rifles on hand.
Hammonds Plains Road reopened to traffic early Tuesday morning more than week after wildfires began in the Halifax area. Officials say the fires in the area are contained, though crews continue to deal with hot spots and flare ups.
Canada's emergency preparedness minister says images of wildfires burning across the country are some of the most severe ever witnessed in Canada and the current forecast for the next few months indicates the potential for continued higher-than-normal fire activity.
Marking the two year anniversary of the alleged terror attack that took the lives of four members of the same family, the board has announced an Anti-Islamophobia Strategy.
On this day in 2021, four out of five members of a London, Ont. family were killed while they were out for a walk and struck by a vehicle, in an apparently deliberate attack.
An investigation is underway after a crash between a car and a transport truck on Tuesday morning. It happened around 9 a.m. on Highbury Avenue near Ron McNeil Line, north of St. Thomas.
While firefighters get more forest fires under control in northern Ontario, travel restrictions declared under an emergency order are being expanded in several communities.
A 13-year-old male from Elliot Lake in northern Ontario has been charged with sexual assault again, bringing the total to 10, after another survivor came forward.
A grieving widow whose husband was run over and killed by a speeding OPP officer can't believe the force told her it won't hold a public hearing into the case because it decided the misconduct was 'not serious.'
