Flair Airlines has filed a $50-million lawsuit against several plane-leasing companies over what it claims were unlawful seizures of four of its aircraft over the weekend. A Flair Airlines plane is seen in this undated handout photo. THE CANADIAN PRESS/HO, Flair Airlines *MANDATORY CREDIT*
MONTREAL – Flair Airlines has filed a $50-million lawsuit against several plane-leasing companies over the “unlawful” seizure of four of its aircraft over the weekend.
The filings in Ontario Superior Court state that a trio of leasing firms found a better deal for the Boeing 737 Maxes with a third party and then “set Flair up” for default, amounting to an illegal termination of leases.
“The seizures were orchestrated in a bad faith and malicious manner that inflicted the maximum possible harm on Flair, including by interfering with its passenger relationships and trust,” the statement of claim reads.
“The lessors sent agents to seize the aircraft in the middle of the night as passengers were boarding planes for spring break vacations.”
Flair said it received no notice, precluding the discount carrier from notifying or rebooking customers. The agents arrived at airports in Toronto, Edmonton and Waterloo, Ont., at 3 a.m. EDT to confiscate the registration certificate and technical logs on board – the aviation equivalent of taking the car keys – the company said.
None of the allegations in Flair’s lawsuit have been tested in court.
The airline also claims the lessors – Columba Lights Aviation Ltd., Corvus Lights Aviation Ltd., and MAM Aircraft Leasing 4, all based in Ireland – carried out the seizures despite having made no objection to an arrangement put forward by Flair last Friday to initiate payment earlier this week.
Claiming substantial damages, Flair further says leasing management company Airborne Capital Inc. “misled” the carrier and that another Dublin-based company agreed to a deal to buy or lease the aircraft. On those grounds, Flair has alleged breach of contract, fraudulent misrepresentation and “conspiracy.”
In February or early March, the defendants “secretly co-ordinated and agreed to sell or lease” the planes to a company Flair has dubbed ABC Corp., the Edmonton-based airline alleges. “The identity of ABC Corp. is known to the defendants, but is not known to Flair as at the time this statement of claim was issued.”
The suit in the Ontario Superior Court of Justice is the latest blow in a back-and-forth fight between the discount carrier and its lessors, with Airborne Capital stating Tuesday that Flair “regularly” missed payments over the past five months, resulting in the plane seizures.
The payment arrears reached millions of dollars, Airborne Capital has said.
Airborne did not immediately respond to requests for comment about the lawsuit on Wednesday.
Flair found itself down by more than a fifth of its 19-plane fleet after the aircraft were taken out of operation Saturday, forcing the airline to cancel multiple flights and roll out three other jetliners waiting in the wings, and to open a new lease on a fourth.
Flair CEO Stephen Jones has said the disruptions could mean fewer aircraft and a slimmed-down schedule this summer.
This report by The Canadian Press was first published March 15, 2023.
Companies in this story: (TSX:AC)
