Plane leasing companies that repossessed four aircraft from Flair Airlines in 2023 are now pursuing compensation from the low-cost carrier, claiming it did not meet rent obligations on time and disregarded multiple default notifications. These claims were outlined in a legal response demanding $30.9 million US, filed in Ontario Superior Court on June 26.
Earlier in 2023, Flair Airlines initiated a $50 million lawsuit against Airborne Capital Inc., an Ireland-based entity, and three associated leasing firms. The lawsuit alleged that these parties covertly secured a more favorable deal for Boeing 737 Max aircraft with a third party, leading to Flair’s default situation. Flair asserted that the aircraft were seized at airports in Toronto, Edmonton, and Waterloo without prior notice, hindering the airline’s ability to inform or accommodate passengers, resulting in the cancellation of multiple flights.
Following the aircraft seizures, which left Flair with a diminished fleet, the airline faced disruptions. Flair claimed that the lessors dispatched agents to seize the planes during boarding for spring break trips.
Airborne Capital countered Flair’s allegations by stating that the airline had consistently missed payments for the past five months, prompting the repossession of the aircraft. They maintained regular communication with Flair’s representatives regarding their financial responsibilities.
The lessors, in response to Flair’s claims, refuted any breach of contract or duty of good faith, justifying the seizures as necessary to safeguard the aircraft’s value. They clarified that the seizures were executed at Canadian airports to prevent stranding passengers abroad and were timed overnight to minimize operational disruptions.
The leasing companies contended that Flair’s legal action aimed to recover losses resulting from its own defaults. According to the countersuit, Flair had neglected rent and other payments, disregarding repeated default notices that explicitly reserved the lessors’ rights to terminate the leases and repossess the aircraft.
The lessors emphasized that they had repeatedly expressed dissatisfaction with the ongoing arrears and denied any connection between the seizures and a more lucrative deal with a third party. They highlighted the considerable time and expenses incurred to refurbish and prepare the aircraft for potential resale or re-leasing.
Flair CEO Maciej Wilk responded to the counterclaim by characterizing it as an anticipated reaction to Flair’s initial lawsuit. Wilk underscored that the legal matters in question transpired over two years ago and reiterated Flair’s dedication to fostering positive relationships with stakeholders while focusing on operational excellence as Canada’s most dependable and cost-effective airline.
