Four aircraft seized from Flair Airlines in 2023 by plane-leasing companies are now seeking damages from the airline for allegedly failing to make timely rent payments and disregarding multiple default notices. The leasing companies have filed a statement of defense and counterclaim amounting to $30.9 million US in the Ontario Superior Court on June 26.
Initially, in March 2023, Flair Airlines had filed a $50 million lawsuit against Airborne Capital Inc., an Irish-based entity, and three related leasing corporations. Flair accused them of arranging a better deal for the Boeing 737 Max aircraft with a third party without informing Flair, leading to a default situation.
As a result of the seizures, Flair Airlines found itself with a diminished fleet, forcing the cancellation of numerous flights. Flair’s claim stated that the aircraft seizures occurred abruptly, even as passengers were boarding planes for their vacations.
In response, Airborne Capital refuted Flair’s claims, mentioning that Flair had consistently missed payments over the past five months, which eventually led to the aircraft seizures. They asserted that they had maintained regular communication with Flair regarding its obligations.
The lessors emphasized that the seizures were conducted to safeguard the aircraft’s value and prevent passenger disruptions, with the seizures strategically timed overnight at Canadian airports. They argued that Flair’s actions were an attempt to recover losses resulting from its own defaults.
In the latest court filings, the leasing companies denied any breaches of contract or failure to act in good faith, stating that the seizures were necessary. They clarified that the delays in re-marketing and restoring the aircraft after repossession incurred significant costs due to repairs required to ensure the aircraft’s airworthiness.
Flair Airlines’ CEO, Maciej Wilk, referred to the counterclaim as a “predictable response” to their lawsuit while emphasizing Flair’s commitment to maintaining positive relationships with stakeholders and focusing on becoming Canada’s most reliable and cost-effective airline.