The lessor of the Flair Airlines aircraft seized on the opening weekend of the March Break has broken its silence on the matter - contradicting the narrative of Flair Airlines CEO Stephen Jones.
New York-based Airborne Capital Ltd. told Global News 14MAR that the ‘repo’ of the planes was a “last resort” following months of missed payments adding up to “millions” of dollars.
The company disputes the account of the matter by Flair’s CEO, who told reporters Monday 13MAR that it owed ‘only’ about $1 million - and that it had initiated payment.
By contrast, Airborne says Flair has been “regularly in default” over the last few months. The lessor also clarified it had been in regular, direct contact with the airline, including issuing notices.
The Globe reports that last month, lessors were “offering a total of 11 Flair aircraft for lease to other airlines,” adding that “seven of those aircraft were pulled from the market because Flair paid the amounts owing.” It was reportedly the remaining four that were seized on the opening March Break weekend.
But Airborne also denied Flair’s accusations that was collaborating with any Canadian airline.
As Open Jaw reported 14MAR, Flair CEO Stephen Jones accused an - unnamed - Canadian airline of attempting to poach the aircraft leases from Flair.
“We do believe that there were negotiations going on behind the scenes between one of the majors and the lessor to hurt Flair by them offering probably above-market rates for the aircraft we’ve been leasing.”
And he explained why he thought Flair was targeted. “We’ve come in and upset the cozy duopoly, and as a consequence people want us out of business.”
Not so, says Airborne. The company told Global News that it “strongly rejects the accusations that have been made by Flair Airlines.”
Furthermore, it says it’s still losing money from the situation, explaining that “material losses are expected in relation to the repossession and remarketing of the aircraft.”
