Flair Airlines failed to make rent payments before planes seized, leasing companies allege

Sammy Hudes · The Canadian Press

· Posted: Jul 04, 2025 2:23 PM EDT | Last Updated: 3 hours ago

Plane-leasing companies that seized 4 craft from Flair Airlines successful 2023 are seeking damages from the fund carrier, alleging it failed to marque rent payments by the deadline and ignored repeated default notices.

The allegations were elaborate successful a connection of defence and counterclaim for $30.9 cardinal US filed successful Ontario Superior Court connected June 26.

In March 2023, Flair Airlines filed a $50-million suit against Irish-based Airborne Capital Inc. and a trio of affiliated leasing corporations, alleging they "secretly" recovered a amended woody for the Boeing 737 Max craft with a 3rd enactment and past acceptable up Flair for default.

Flair said astatine the clip it received nary announcement implicit the "unlawful" seizures, which took spot astatine airports successful Toronto, Edmonton and Waterloo, Ont., precluding the hose from alerting oregon rebooking customers.

The hose past recovered itself down by much than a 5th of its 19-plane fleet, forcing it to cancel aggregate flights.

"The lessors sent agents to prehend the craft successful the mediate of the nighttime arsenic passengers were boarding planes for outpouring interruption vacations," Flair's connection of assertion said.

But Airborne Capital has said that Flair "regularly" missed payments implicit the erstwhile 5 months, prompting the level seizures, and that it had been successful regular interaction with Flair's representatives astir its obligations.

None of the allegations successful Flair's suit oregon the countersuit person been tested successful court.

In caller tribunal documents, the lessors contradict immoderate breach of declaration oregon work to enactment successful bully faith, saying the seizures were indispensable to support the worth of the aircraft.

They said the seizures took spot astatine Canadian airports to debar stranding passengers overseas and were timed overnight to forestall disruption during busier daytime hours.

"Flair's enactment is an effort to retrieve self-inflicted losses arising from its ain defaults," the countersuit stated.

"For months, Flair failed to marque rent and different payments erstwhile owed nether the leases. It ignored repeated default notices successful which the lessors expressly reserved their rights and remedies nether the leases, including to terminate the leasing of the craft and repossess the aircraft."

The leasing companies said they "repeatedly advised that the continuing arrears were unacceptable."

They besides denied that the seizures were related to a much profitable woody with a third-party.

"In fact, it took the defendants respective months and important outgo ... to re-market and reconstruct the craft to a suitable information earlier they could beryllium re-leased oregon sold," the papers stated.

"Two craft required large repairs due to the fact that 1 oregon much of their engines were unserviceable owed to defects uncovered station betterment from Flair."

In a statement, Flair CEO Maciej Wilk called the counterclaim a "predictable response" to Flair's lawsuit.

"The institution does not remark connected progressive litigation, but would similar to constituent retired that the claims successful question subordinate to events that occurred implicit 2 years ago," Wilk said.

"Flair continues to support and cultivate productive and affirmative relationships with each of its stakeholders, including its customers, lessors and different manufacture partners and remains focused connected executing its strategy and committedness to beryllium Canada's astir reliable and affordable airline."