Flair Airlines has 4 planes seized: What led to this?

In a move described by Flair as “extreme and unusual”, the New York hedge fund seized four of the airline’s planes over the weekend, causing a number of flight cancellations.

The low-cost airline said it would work to rebook or refund customers, but the cancellations left about 1,300 passengers stranded and frustrated, especially those traveling for March break.

Here’s what we know about flight disruptions.

WHAT HAPPENED?

Flair stated a series of tweets There were “service disruptions” Saturday night at airports in Toronto, Edmonton and Waterloo, Ont.

The seizure involved two planes in Toronto and one plane each in Edmonton and Waterloo.

“We are very sorry for our passengers who were affected. We know unplanned travel interruptions are stressful, and we’re doing everything we can to get our customers to their destinations as soon as possible,” the tweet said.

The airline’s statement described the matter as a “commercial dispute,” with spokesman Mike Arnott confirming that Flair leased its planes from a company called Airborne Capital.

Citing a person familiar with the matter, The Canadian Press reported that payments had been made for the affected planes a few days backmoreover, the debt amount is relatively small.

“About a million dollars in slightly overdue rent payments,” said Flair CEO Steven Jones, TASS reported. CTV News Atlantic. “We really want to find a conceptual solution with the landlord on this as we believe the dispute is minor and the actions were unjustified.”

Jones also said he was aware of fewer than 1,300 passengers whose plans were disrupted.

Meanwhile, the company said it was involved in “continuous communication” with the leasing company and “payment has begun.”

“Flair Airlines will continue to engage in consensual mediation with the lessor to remedy the situation,” the airline said.

WHAT IS FLARE DOING?

The airline said it had three spare planes to fill the canceled flights and that it did not expect any major disruptions to its route map.

The company informed Saturday night on Twitter that affected customers could rebook their flights with Flair or another airline with the help of a dedicated team at no additional cost.

Customers can also rebook their travel and receive a refund from Flair within seven days.

“We sincerely apologize for this disruption, particularly during a busy travel weekend, and thank our customers for their patience,” the airline said.

“Our team is dedicated to rebooking all affected customers. We guarantee that we will work to reach your destination as soon as possible.”

HOW DID THE PASSENGERS REACT?

Air travelers shared their stories with CTV News, detailing the impact flight disruptions have had on their or their family members’ travels.

Some said Flair had initially told them their flights had been cancelled.unplanned service delays under the airline’s control, but necessary for safety.”

The plane could be seen sitting on the tarmac with covers over its turbines near Waterloo International Airport. several flights involving Flair were cancelled.

“The flights arriving and departing were changed, canceling at exactly the same time,” said Andrea Thompson, who booked a flight with Fleur in December to travel from Halifax to Toronto with her daughter.

He ended up buying plane tickets to Ottawa and a train ride from there to Toronto, spending an additional $600.

“I’ve now lost a whole day of our holiday and we’re only here until Tuesday morning. So I’m really angry. I’m tired,” she said.

WHAT DOES THIS MEAN FOR?

Flair, which launched in 2004 as a charter airline and began offering regularly scheduled service in 2018, has made a number of recent service and fleet expansion announcements as it aims to be Canada’s third-largest domestic airline.

John Gradek, a professor at McGill University’s School of Aviation Management, told CTV’s “Your Morning” on Monday that the seizure of Flair’s planes comes at a very inopportune time.

“It’s like your mortgage being foreclosed on by your bank, and basically they’re changing the lock on the front door,” he said.

Gradek said there were questions about why Flair had three backup planes that weren’t already flying.

“These planes are hundreds of millions of dollars each, so unless you have a lot of cash in your pocket, which most of these carriers don’t, the easiest way for them to operate these planes is to lease them,” he said.

Gradek described the situation as a “black eye” for Flair, but hoped it wouldn’t be a sign of further trouble, given the need for such low-cost carriers.

“It makes you look bad in the court of public opinion, where you’re canceling flights, delaying passengers, it’s not a good look,” said Phil Durday, CEO of Flightline Training Services in Brampton, Ont.

Flair was previously involved in a long-running foreign ownership issue.

in June 2022 Canadian Transportation Agency ruled that Flair is Canadian and can keep his license after the airline overhauled its board to ensure at least half of the directors are Canadian. Flair also terminated the rights of any unique shareholders of the Miami-based investor to whom he is heavily indebted.

With files from CTVNewsAtlantic.ca video reporter Hafsa Arif, CTVNewsKitchener.ca digital content producer Daniel Caudle, CTV News Kitchener videographer Colton Wiens and The Canadian Press.