Circling the drain...

[JungleRiot]

https://www.theglobeandmail.com/busines ... -seizures/

[CaptDukeNukem]

https://www.theglobeandmail.com/busines ... -seizures/

Could you kindly post the article? This is behind a paywall

[Airbrake]

https://www.theglobeandmail.com/busines ... -seizures/

Could you kindly post the article? This is behind a paywall

Leasing companies that seized four Flair Airlines planes for missed rent payments in 2023 have filed a lawsuit against the carrier for US$30.9-million.

Flair sued the lessors for $50-million shortly after the repossession of the Boeing 737 aircraft, alleging breach of contact.

The counterclaim for damages by the four Irish leasing companies is made in their statement of defence of that suit, filed recently in the Ontario Superior Court of Justice.

In the statement, which contains unproven allegations, the lessors allege they incurred millions of dollars in costs when they repossessed, repaired and leased the aircraft again or sold them.

Flair was late in monthly payments and owed as much as US$5.4-million before the planes were seized, the companies allege.

Flair’s lawsuit against them is “an attempt to recover self-inflicted losses arising from its own defaults under four aircraft leases that it entered into with the lessors.”

“For months, Flair failed to make rent and other payments when due under the leases. It ignored repeated default notices,” reads the counterclaim, filed by Columbia Lights Aviation, Corvus Lights Aviation, Mam Aircraft Leasing and Airborne Capital.

Maciej Wilk, chief executive officer of Flair, said in an e-mail the countersuit is “the predictable response to Flair’s initial claim that the aircraft lessors wrongfully seized the aircraft in question.”

“Flair continues to maintain and cultivate productive and positive relationships with all of its stakeholders, including its customers, lessors and other industry partners, and remains focused on executing its strategy and commitment to be Canada’s most reliable and affordable airline,” Mr. Wilk said.

Agents for the leasing companies boarded and took control of the planes early on March 11, 2023, at airports in Toronto, Waterloo, Ont., and Edmonton.

Flair’s chief executive officer at the time, Stephen Jones, called the moves “draconian.” He said Flair was late on its lease payments after a “tough” winter.

Flair sued the companies, claiming the seizures were “unlawful.”

Flair Airlines CEO Stephen Jones to step down

U.S. regulator orders Flair Airlines lenders to stop accepting money from new clients

In the lessors’ counterclaim and statement of defence, however, the companies say the lease agreements gave them the rights to repossess the planes in case of default. The lessors allege Flair’s missed payments on the four aircraft fluctuated between $1.8-million and $3.5-million between September, 2022, and March, 2023.

The lessors denied Flair’s claims they induced the airline to breach the leasing agreements and conspired to transfer the planes to others at higher payment levels.

In their claim for damages, the leasing companies are seeking repayment of lost rental income, maintenance and repair costs, marketing expenses and taxes.

In the court document, the leasing companies lay out the steps they allegedly took to collect the rent owed in the months before they seized the planes. These include repeated letters of default, demands for payment and a notice under the Bankruptcy and Insolvency Act.

By March 1, Flair owed US$5.4-million on six leases held by the companies, they allege. In a video call that day with the lessors, a representative of Flair’s U.S. investor and financial backer at the time, 777 Partners, offered to pay US$4.2-million toward the arrears by March 13, a week after the payment deadline. The rest would be paid in the coming months, 777 Partners’ people said.

The payment arrived on March 6, leaving Flair owing US$1.3-million.

On March 10 and in the early hours of March 11, Flair’s Mr. Jones sent WhatsApp messages to the lessors’ representative assuring him the balance would come in the next week. Early that same morning, the planes were seized.

“The lessors had heard Flair’s empty promises of future payments before,” the court document reads. “After months of defaults, and ongoing events of default under the leases, the lessors were left with no choice.”

[co-joe]

An article from 2023 re-hashed as if it were current news. The WestJet media machine is really running out of stories to dredge up these days.

[cdnavater]

An article from 2023 re-hashed as if it were current news. The WestJet media machine is really running out of stories to dredge up these days.

It’s a current article about the lessers suing Flair!