Flair Airlines is suing leasing company Airborne Capital for 50 million dollars, according to a report in The Toronto Star. The Canadian carrier alleges “breach of contract and negligent or fraudulent misrepresentation” over the seizure of four of its aircraft late last week.
Flair Airlines alleges “technical breach” of contract
As reported by The Toronto Star, the lawsuit filed in Ontario Superior Court against the lessor and other affiliated companies alleges that Flair Airlines had already agreed to pay a past-due amount of money when its aircraft were seized. In that regard, the company argue there is a “technical breach” of the contract.
The document states that “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”. It also mentions that the measure was carried out unexpectedly and in the early hours of the morning, without prior notice of any kind.
Last Monday, Stephen Jones, the company’s CEO, accused other airlines of precipitating the situation because of “their intention to put Flair out of business”.
“I think there were behind-the-scenes negotiations between one of the larger airlines and the lessor to hurt Flair by probably offering them above-market rates for the aircraft we have been leasing”, Jones said without providing any names or citing evidence, according to a Global News report. However, it was a clear reference to Air Canada and Westjet, Canada’s largest airlines and its main competitors.
Airborne Capital’s response
A day later, Airborne Capital stated that the lease was terminated after a five-month period in which Flair Airlines had allegedly failed to meet its payment obligations on a regular basis. According to the company, the late payments accumulated “millions of dollars” in debt.
“Terminating an aircraft lease is always a last resort, and such a decision is never taken lightly”, Airborne Capital said. So far, the company has not issued a new statement of defence.
