Seizure of Flair airplanes points to stiff competition in aviation

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Seizure of Flair airplanes points to stiff competition in aviation
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The head of Flair Airlines is accusing one of Canada’s two major airlines of attempting to kneecap the discount carrier’s operations.

“We’re 100 per cent caught up,” he added, referring to payments on leases across its 19-plane operating fleet. The tally does not include the four seized planes.

The abrupt seizures and subsequent accusations hint at the fierce competition and high demand playing out across the Canadian air travel industry. “If you screw up your payment with the lessor, they will take the first opportunity to seize the airplane, bring it back and then remarket it at a much higher level of revenue than you would normally get with Flair.”Article content

About 1,900 passengers saw their flights cancelled Saturday, with some 420 of them rebooked within three days, Jones said. Domestic ticket prices have dropped 15 per cent from 2019 amid heightened airline competition — six carriers now ply the Toronto-Vancouver route versus two a few years ago — leaving carriers with thinner profit margins as they battle for control of the skies, according to Montreal-based travel data firm Hopper Inc.

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