Flair Airlines is looking for partners who will provide the low-cost airline with fresh capital to “restructure” its finances and expand its fleet.
Eric Tanner, vice president of revenue management and network planning, said the company is hoping to attract partners to help manage pandemic-era debt and enable the company to purchase more jets than the current 20 aircraft.
“We want to refocus our growth ambitions and find strategic equity partners to help us reach that level,” Tanner said in an interview.
“The investors are currently working on restructuring the balance sheet.”
He quickly added that finding investors was not an “urgent need” and that the company itself was not undergoing a restructuring after making profits in July and August.
“From a performance perspective, the company is frankly in the best shape it has ever been in,” he said.
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Tanner attributed the upturn in part to weaker competition last year.
Low-cost airline Lynx Air collapsed in February and filed for bankruptcy protection, while WestJet’s ultra-low-cost subsidiary Swoop closed in October last year.
Flair has faced numerous financial turmoils since its maiden flight in 2017.
In November, the company owed the government $67.2 million in unpaid taxes related to import duties on the 20 Boeing jets in its fleet.
Then-CEO Stephen Jones told the Canadian Press in January that he was making the expansion plans because Flair was struggling with delays in aircraft deliveries and significant debt.
Last year, four of Flair’s planes were seized after an aircraft leasing executive claimed the company regularly missed millions of dollars in rental payments. Three of those Boeing 737s now fly for Ethiopian Airlines, while a fourth is in the hands of Johannesburg-based FlySafair.
“As far as the balance sheet goes, there are some legacy issues from the last four years where Flair grew very quickly and did not receive any government support during COVID,” Tanner said.
“Honestly, this just needs to be cleared up so we can close this chapter.”
The airline would prefer Canadian financial partners, he said. Federal law restricts foreign ownership of a Canadian airline to 49 percent.
This report by The Canadian Press was first published August 28, 2024.
© 2024 The Canadian Press
