Flair Airlines has four planes seized in commercial dispute

Flair Airlines seized four planes on Saturday in a commercial dispute with a New York-based hedge fund and an aircraft lessor that resulted in flight cancellations, a spokesman for the ultra-low-cost carrier said.

Landlord Airborne Capital Ltd declined to comment.

Alberta-based Flair, the ultra-low-cost carrier, said the seizures were “extreme and unusual actions” to fall behind on its leases, and the payment has begun.

Two planes were seized in Toronto, one in Edmonton and a fourth in Waterloo, and the move comes at the start of a busy March holiday travel season in Canada.

“The airline is deeply affected by this unprecedented action,” Flair representatives said in a statement. “Flair Airlines has engaged in ongoing communication with the lessor and payment has commenced as previously done.”

Privately owned Flair said it would use additional aircraft to minimize the impact on passengers and did not foresee any major disruptions to its route map.

“We are truly sorry that passengers were affected today and are taking steps to minimize disruption to their journeys,” the spokesman added.

(Reporting by Nia Williams in British Columbia Editing by Franklin Paul)