Flair Suspending Growth Plans amid Delivery Delays and Debt

[Gameon]

I just can't understand Canadian pilots sometimes. We should be cheering on more companies and competition. Helps improve wages and ticket prices. Not snickering and hoping for their demise. Maybe it's insecurity so you can pat yourself on the back and validate your own career decisions.

Keep dreaming... ULCCs like Swoop, Flair ETC don't do this. They hurt the industry for the worker with the race to the bottom.

Strange, flair fo's make more than AC for several years......

I just can't understand Canadian pilots sometimes. We should be cheering on more companies and competition. Helps improve wages and ticket prices. Not snickering and hoping for their demise. Maybe it's insecurity so you can pat yourself on the back and validate your own career decisions.

When I worked at Air Canada I always thought it was funny. All we would do is bitch and moan in the flight deck about how shitty our company, management, union was ect ect. Complain about how Sunwing or Transat pilots worked less. Yet the minute you went to the bar with your buddies it was always like "when you gonna apply to AC? "

I blame all the lead poisoning, the tall blade of grass gets cut first

My favourite is when I’m messaging friends to congratulate them on getting on with AC and in their first message back they throw in the “so when you coming to AC?” as if I also wanna be not affording rent and living with my parents LOL

Ignorant comment - AC provides a lot more financial reward combined with long term security. Very short term logic

What good is that when you miss the boat on housing and living life? Skip enjoying your 30's in the hopes that your health and happiness are there at 40 when you can finally afford not not have a room mate

Like the guys and gals hired just 2-3 short years ago with command in the front windscreen and 30 years to go with nothing but increasing pay and sleep at night stability? Or you could be at Flair stranding passengers in Cancun with basically no job security. Check

[newlygrounded]

Keep dreaming... ULCCs like Swoop, Flair ETC don't do this. They hurt the industry for the worker with the race to the bottom.

Strange, flair fo's make more than AC for several years......

I just can't understand Canadian pilots sometimes. We should be cheering on more companies and competition. Helps improve wages and ticket prices. Not snickering and hoping for their demise. Maybe it's insecurity so you can pat yourself on the back and validate your own career decisions.

When I worked at Air Canada I always thought it was funny. All we would do is bitch and moan in the flight deck about how shitty our company, management, union was ect ect. Complain about how Sunwing or Transat pilots worked less. Yet the minute you went to the bar with your buddies it was always like "when you gonna apply to AC? "

I blame all the lead poisoning, the tall blade of grass gets cut first

Ignorant comment - AC provides a lot more financial reward combined with long term security. Very short term logic

What good is that when you miss the boat on housing and living life? Skip enjoying your 30's in the hopes that your health and happiness are there at 40 when you can finally afford not not have a room mate

Like the guys and gals hired just 2-3 short years ago with command in the front windscreen and 30 years to go with nothing but increasing pay and sleep at night stability? Or you could be at Flair stranding passengers in Cancun with basically no job security. Check

Who is getting captain upgrades at ac in 2 years? I think you're out to lunch, even if you get it in 5 years you're going to work at least every Christmas or new years and miss out on a lot of big life events.

[Canadaflyer46]

It's actually true. Some upgrades have been going to people with 2 years on property. However, that will not be the case for someone hired today. Also, there's a reason many FOs refuse that upgrade and those left seats are going so junior. Good way to set yourself up for a divorce when you're gone 20 days a month with no control of your schedule for many years to come. Seems like any sign of a decent contract keeps getting further and further away too.

[rooster]

I just can't understand Canadian pilots sometimes. We should be cheering on more companies and competition. Helps improve wages and ticket prices. Not snickering and hoping for their demise. Maybe it's insecurity so you can pat yourself on the back and validate your own career decisions.

When I worked at Air Canada I always thought it was funny. All we would do is bitch and moan in the flight deck about how shitty our company, management, union was ect ect. Complain about how Sunwing or Transat pilots worked less. Yet the minute you went to the bar with your buddies it was always like "when you gonna apply to AC? "

Cuz you have salty people like QKZXKV who like to make themselves feel superior to anyone who didn't make life choices like him, all because he was likely PFOd by girls and some airlines all his life.

[flying4dollars]

Strange, flair fo's make more than AC for several years......



I blame all the lead poisoning, the tall blade of grass gets cut first



What good is that when you miss the boat on housing and living life? Skip enjoying your 30's in the hopes that your health and happiness are there at 40 when you can finally afford not not have a room mate

Like the guys and gals hired just 2-3 short years ago with command in the front windscreen and 30 years to go with nothing but increasing pay and sleep at night stability? Or you could be at Flair stranding passengers in Cancun with basically no job security. Check

Who is getting captain upgrades at ac in 2 years? I think you're out to lunch, even if you get it in 5 years you're going to work at least every Christmas or new years and miss out on a lot of big life events.

It's happening. I was awarded it after a year. Could have held a diff aircraft left seat after 8 months. One fella from my PIT course got it and was fully trained and released after about a year. Granted that timeline is changing and now it's closer to the 18 month - 2 year mark as we are filling positions. Seniority is moving fast right now. It's not long until one can hold a block or get weekends off compared to years past. Won't last, but I assure you it's happening as we speak.

[QKZXKV]

I just can't understand Canadian pilots sometimes. We should be cheering on more companies and competition. Helps improve wages and ticket prices. Not snickering and hoping for their demise. Maybe it's insecurity so you can pat yourself on the back and validate your own career decisions.

When I worked at Air Canada I always thought it was funny. All we would do is bitch and moan in the flight deck about how shitty our company, management, union was ect ect. Complain about how Sunwing or Transat pilots worked less. Yet the minute you went to the bar with your buddies it was always like "when you gonna apply to AC? "

Cuz you have salty people like QKZXKV who like to make themselves feel superior to anyone who didn't make life choices like him, all because he was likely PFOd by girls and some airlines all his life.

Life's good on my end; snowflakes such as yourself get all butthurt that I clicked " " because a useless fly by night (no pun intended) company's manament is failing hard and missed pay. Why so fragile over a ?

Edit: Rooster you seem to get worked up really easily on here every time someone says something. You probably should learn to relax and find a way to enjoy life. I hope you don't lose it on your next EFAV1 like you do on here over a .

Take care!

[rooster]

I just can't understand Canadian pilots sometimes. We should be cheering on more companies and competition. Helps improve wages and ticket prices. Not snickering and hoping for their demise. Maybe it's insecurity so you can pat yourself on the back and validate your own career decisions.

When I worked at Air Canada I always thought it was funny. All we would do is bitch and moan in the flight deck about how shitty our company, management, union was ect ect. Complain about how Sunwing or Transat pilots worked less. Yet the minute you went to the bar with your buddies it was always like "when you gonna apply to AC? "

Cuz you have salty people like QKZXKV who like to make themselves feel superior to anyone who didn't make life choices like him, all because he was likely PFOd by girls and some airlines all his life.

Life's good on my end; snowflakes such as yourself get all butthurt that I clicked " " because a useless fly by night (no pun intended) company's manament is failing hard and missed pay. Why so fragile over a ?

Edit: Rooster you seem to get worked up really easily on here every time someone says something. You probably should learn to relax and find a way to enjoy life. I hope you don't lose it on your next EFAV1 like you do on here over a .

Take care!

Oops! Looks like I triggered QKZXKV again!! Poor lil guy's gotta self project on others to compensate for his own shortcomings. Stay salty homie!

[rudder]

https://apple.news/AbNb4jKDcT_aifyQi-jeKJQ

[cdnavater]

https://apple.news/AbNb4jKDcT_aifyQi-jeKJQ

Story behind paywall, however the headline says a lot!

[rudder]

https://apple.news/AbNb4jKDcT_aifyQi-jeKJQ

Story behind paywall, however the headline says a lot!

It is a Globe and Mail article. Also behind a paywall.

https://www.theglobeandmail.com/busines ... e-flights/

[daedalusx]

https://apple.news/AbNb4jKDcT_aifyQi-jeKJQ

Story behind paywall, however the headline says a lot!

https://archive.is/m9wxS

[rudder]

REPORT ON BUSINESS
Flair Airlines cuts over 600 flights as it faces multimillion-dollar financial woes

Flair Airlines has reduced its spring schedule by more than 600 flights, making cost-saving cuts to its domestic network even as it adds holiday routes after the failure of low-cost rival Lynx Air.
Flair eliminated a number of flights departing its major hubs, including Toronto, Ottawa, Calgary and Edmonton, for March, April and May, according to Cirium, an aviation data company. The Edmonton-based no-frills carrier has also added flights to Florida, Mexico, Las Vegas and other resort destinations.
Flair’s discount rival, Lynx Air, ceased flying on Feb. 26 and is under court-granted protection from creditors. The nine-plane airline said it could not pay for its daily operations and will wind up the business or be sold in a court-supervised process under the Companies’ Creditors Arrangement Act.
The recent changes in the discount segment precede what is expected to be a busy summer travel period for Canada’s airlines. The industry has enjoyed healthy demand and higher airfares since COVID-19-related restrictions were lifted.
Flair’s schedule changes come as the airline faces a tax repayment bill worth $67-million, a move by a financial services company to hold back $25-million in customer receipts, in addition to a sharp credit-rating downgrade of Flair’s U.S. shareholder’s reinsurance unit, which is a lender to Flair.
Overall, Flair has slashed its schedule for March, April and May by about 8 per cent, the airline confirmed. Rivals Air Canada, WestJet Airlines and Porter Airlines, meanwhile, have all boosted the number of scheduled flights for the same months by about 6 per cent, according to Cirium.
Eric Tanner, Flair’s vice-president of revenue management and network planning, said the airline made the cuts to reduce flights in a crowded market, and is focusing on longer, pricier domestic routes that better defray the high costs of landing at Canadian airports. The longer flights mean Flair, on an overall basis, has increased its capacity, measured by available seat miles, an industry gauge. As well, Flair added sun destinations in Mexico and the Caribbean after seeing strong demand last year, he said.
“Our [year-over-year] average fare for this period is substantially exceeding the increase in [flight] length,” Mr. Tanner said. “For March through May, we anticipate an improvement of over 50 per cent in our average base fare.”
John Gradek, who teaches aviation leadership at McGill University, said the airline has eliminated or reduced flying frequencies on poorer-selling routes that are costing it money to operate. “Spring break is over and they’ve got to be conserving cash,” Mr. Gradek said.
Flair Airlines CEO hopes to bid on some Lynx planes after shutdown scuttles deal
Flair’s route cuts come as it faces challenges on a few fronts:
A payment-processing company, Peoples Group, is withholding $25-million in transfers to Flair. The airline says the company, which acts to protect consumers who have prepaid for services, is acting unjustly. “We will pursue resolution through legal channels,” Flair chief executive Stephen Jones said in a statement.
Peoples Group declined to answer questions specifically about Flair. In an e-mail, Peoples said it manages reserve funds that protect consumers when they deal with merchants that offer prepaid services, including airlines. It increases the amount in the fund according to the risk posed by a merchant.
“Should a flight be cancelled and not rebooked by an airline and the airline cannot refund the money, cardholders are entitled to request a refund, or chargeback, from their card-issuing bank,” Peoples Group said in a statement, speaking generally. “When a chargeback is received, the airline’s payment acquirer [Peoples or another processor] must refund the purchase from a reserve account,” Peoples said, adding that its “underwriting team reviews the risk associated with each one of our merchants and determines the right reserve required to match the risk.”
Flair owes $67-million in tax repayments to the federal government for aircraft imports, and says it is making payments on the amount. A court granted Ottawa the right to seize and sell Flair property worth the amount owed, but has not apparently done so.
The government has registered interests or liens on Flair’s Boeing 737 flight simulator, unspecified Flair real estate and “all of the debtor’s present and after-acquired” personal property. Flair says the interests are related to the tax bill. The Canada Revenue Agency declined to comment.
Alberta’s property registry shows about 25 liens on Flair aircraft and other assets have been made or amended since 2022. The assets include leased aircraft, a spare engine, forklifts and blanket claims on all Flair property. Aircraft leasing companies in March, 2023, seized four Flair aircraft for missed rent payments over several months. Mr. Jones has said U.S. investor 777 Partners paid the arrears on another seven aircraft, which Flair retained.
Mr. Jones, in an e-mail, said the Alberta registrations are standard practice. “Just like any other airline, Flair has security agreements on its aircraft and equipment pursuant to leasing agreements. These security agreements are a common practice and do not impede our ability to operate efficiently,” said Mr. Jones, who was unavailable for an interview on Wednesday and Thursday.
Alfonso Nocilla, a law professor at Western University in London, Ont., said leasing companies and creditors typically register their interests in properties when a deal is made, while others might do so to ensure they are viewed as secured creditors.
“The registry exists to give notice to anyone else in the world that you have a security interest in the property that’s covered by that registration,” Prof. Nocilla said.
Tribunal orders Flair Airlines to pay passenger $780 for spoiled seafood caused by baggage delay
Flair says it’s managing its finances.
“Customers can be assured that Flair remains dedicated to fulfilling tax obligations, managing financial responsibilities, and providing affordable, accessible air travel options, guided by principles of compliance, stability and transparency,” Mr. Jones said in a e-mail.
A major U.S. investor in Flair, meanwhile, is fielding its own challenges. Flair is 25 per cent owned by 777 Partners LLC, a Miami-based private equity company.
New York-based credit-rating agency AM Best has downgraded 777 Partners’ insurance arm, 777 Re Ltd., twice since November, from “excellent” to “weak.” AM Best cited Bermuda-based 777 Re’s ability to meet its financial and insurance obligations, its “weak” balance sheet and exposure to “illiquid” affiliated private investments.
Those related-party investments include several European soccer teams and Flair Airlines.
777 Partners’ stable of soccer teams includes Genoa CFC, Sevilla Futbol Club, Hertha Berlin, Standard Liege and Vasco da Gama. Its proposed purchase of the Everton Football Club in Britain is awaiting approval from the Premier League.
When asked how Flair is affected by 777’s situation, Mr. Jones said the airline “maintains the full support of our financial backers, and we remain steadfast in our commitment to providing competitive services in the market.”
A 777 Partners spokesperson declined to comment.
AM Best said 777 Re is working with the industry regulator, the Bermuda Monetary Authority, to reduce the company’s exposure to the affiliated assets. As a reinsurer, 777 Re sells policies to insurance companies looking to reduce their own risks. Typically, a reinsurance company invests in assets seen as stable and secure. Soccer teams and airlines are known for their financial volatility. Bermuda offers reduced regulation and is home to many reinsurance companies.
The reinsurance division of privately held 777 Partners is a significant lender to Flair Airlines, with credit totaling US$58-million in 2022 and US$37-million in 2021, according to 777 Re documents filed with the Bermuda Monetary Authority. Investments in entities related to 777 Partners totalled US$1.4-billion in 2022.
AM Best said its ratings downgrades “reflect 777 Re. Ltd.’s balance sheet strength, which AM Best assesses as very weak, as well as its marginal operating performance, very limited business profile and weak enterprise risk management.” AM Best and the Bermuda Monetary Authority declined to comment further.
Companies with poor ratings are viewed as riskier than average investments, and typically must borrow money at higher interest rates.

[boeingboy]

But it's all OK guys - this is normal. Nothing to see here!

https://www.msn.com/en-ca/travel/news/f ... fe29&ei=15

[airway]

But it's all OK guys - this is normal. Nothing to see here!

https://www.msn.com/en-ca/travel/news/f ... fe29&ei=15

Flair Airlines provided a statement from CEO Stephen Jones to Global News on Friday afternoon, largely pushing back against suggestions that the spring flight schedule had been recently changed. In fact, Flair set its spring schedule in August 2023, according to the statement, "reflecting a network tailored to meet the wants and needs of Canadian travellers."

If this is true, why did they wait till now to unveil their "spring schedule" and cancel 600 flights.

[DanWEC]

This kind of publicity is the worst. The article's tone borders on malicious. Yes, they're rightsizing their schedules for the season, and tempering growth, and have a negative balance sheet with a self-admitted end somewhere down the line, (!) but to lead with a catastrophic assumption does a lot of harm.
This will affect bookings and perhaps become a self-fulfilling prophecy. I really wish it wouldn't have been printed like this.

[Old fella]

I feel bad for the flying public who certainly will be caught up(again) in another ULCC meltdown, Flair has been admitted to the aviation palliative care unit not far from its last breath. There are going to be some unnerving gulps from the employees on pay deposit days, needless to say - sadly

[Maurice]

Appears the website has an error message when you try to book since last night.

[vrefplus5]

A bit more balanced opinion than the usual parade of Doomsday Diviners who chip in here and pontificate

5:00 min mark

https://www.bnnbloomberg.ca/video/airli ... ns~2890471

[DanWEC]

Appears the website has an error message when you try to book since last night.

This comes up as soon as you go to flyflair.com since yesterday. This is an eternity in the IT world for an issue to persist uncorrected.......

Screenshot_20240323_120240_Edge.jpg (575.27 KiB) Viewed 4716 times

[ACYYC]

Hmmm another unpaid vendor finally pulling service?

Seems odd to me that these "glitches" (ADP and now this) start happening when Flair's payment processor is withholding cash until services are rendered to the customer stopping Flair from using tomorrows bookings to pay todays bills.

[DanWEC]

Hmmm another unpaid vendor finally pulling service?

Seems odd to me that these "glitches" (ADP and now this) start happening when Flair's payment processor is withholding cash until services are rendered to the customer stopping Flair from using tomorrows bookings to pay todays bills.

This is precisely what's going on between Flair and their finance providers; People's Trust and PSiGate. They're calling it a "dispute".
For the sake of people depending on Flair to pay their mortgages, I hope this gets resolved soon, but there's way too much smoke lately for there not to be a raging inferno.

[Old fella]

At some point in time in this country- second largest land mass and 40th spot in population- there will have to be a realization that ULCC model can’t work. We are not the EU with close impact high density structure supported with a population nearing 500m. Flair is covering most of domestic Canada and parts of continental USA and southern sun locations with a fleet of 20+ airplanes advertising fares $89 and lower. But whatever.

[Old fella]

Hmmm another unpaid vendor finally pulling service?

Seems odd to me that these "glitches" (ADP and now this) start happening when Flair's payment processor is withholding cash until services are rendered to the customer stopping Flair from using tomorrows bookings to pay todays bills.

Representing the travelling public,this is probably a good thing. It saves the unsuspecting travellers from having worthless admissions when the show stops.

[ACYYC]

Representing the travelling public,this is probably a good thing. It saves the unsuspecting travellers from having worthless admissions when the show stops.

Indeed. Protects People's Trust from holding the bag of customer refunds if Flair goes under, which also protects the customer.

Still can't book a flight on Flair's website. It's been like that all day, and still nothing from Flair's social media team about it. That seems odd.

[cdnavater]

Representing the travelling public,this is probably a good thing. It saves the unsuspecting travellers from having worthless admissions when the show stops.

Indeed. Protects People's Trust from holding the bag of customer refunds if Flair goes under, which also protects the customer.

Still can't book a flight on Flair's website. It's been like that all day, and still nothing from Flair's social media team about it. That seems odd.

Can the CTA pull a licence if they believe a company can’t fulfill their obligation? By this I mean, can they tell Flair to stop selling tickets until they can prove they are a going concern?
Or, is Flair intentionally not selling tickets because they are ceasing operations on Monday, it does seem extremely odd to not at least address the elephant with everything else going on.