EDMONTON- Flair Airlines (F8), a Canadian discount carrier, is actively seeking strategic partners to inject fresh capital into the company to add new aircraft for fleet restructuring.
Eric Tanner, vice president of revenue management and network planning, revealed this initiative aims to restructure the airline’s finances and expand its current fleet of 20 aircraft.
Flair Airlines Fleet
Flair Airlines operates a fleet of Boeing 737 family aircraft including 18 737 MAX 8 and two 737-800 aircraft.
Tanner emphasized that the search for investors is not driven by immediate financial pressures. He stated, “The business is in frankly the best shape that it’s been in, from a performance perspective,” citing profits in July and August 2024, Global News reported.
The airline’s quest for new equity partners is primarily focused on addressing pandemic-era debt and fueling growth ambitions. Tanner explained, “What we’re really looking at is restarting our growth ambitions and finding strategic equity partners who are going to help us get onto that level.”
Flair’s improved financial performance is partially attributed to reduced competition in the ultra-low-cost carrier market. The collapse of Lynx Air in February 2024 and the shutdown of WestJet’s subsidiary Swoop in October 2023 have created more opportunities for Flair.
Despite recent profitability, Flair faces significant financial challenges. As of November 2023, the airline owed the Canadian federal government $67.2 million in unpaid taxes related to import duties on its Boeing jet fleet.
Financial Restructuring
The company’s financial struggles have previously impacted its growth strategy. In January 2024, then-CEO Stephen Jones announced the suspension of expansion plans due to aircraft delivery delays and substantial debts.
Eric Tanner, Flair’s vice president of revenue management and network planning, attributes the company’s financial strain to rapid expansion during the COVID-19 pandemic without government support. He states, “That frankly just needs to get cleaned up so that we can turn the page.”
The airline prioritizes Canadian financial partners for its restructuring efforts. This preference aligns with federal regulations limiting foreign ownership of Canadian airlines to 49 per cent.
According to the official website, Flair operates flights to around 35 destinations across Canada, the United States, Mexico, the Dominican Republic, and Jamaica.
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