Flair launches one dollar base fares

[julcancro]

Flair Airlines today launches $1 base fares. Designed to stimulate even more record breaking travel demand.

VANCOUVER, BC, Aug. 26, 2024 /CNW/ - Flair Airlines, renowned for redefining affordability in Canadian aviation, is proud to launch its $1 base fare initiative, further cementing its position as the airline dedicated to making travel more accessible for everyone. Starting today, travellers can explore select northbound routes from Mexico, the USA, Jamaica, and the Dominican Republic to Canada at an unbeatable base fare of just $1. This groundbreaking offer is only the beginning, as Flair will continue to introduce $1 base fares on different routes across its network throughout the year.

"We are committed to breaking down barriers to travel, making it possible for more people to explore more places more often," said Flair Airlines CEO Maciej Wilk. "This $1 base fare launch is not a limited-time gimmick but a sustained commitment to offering unparalleled affordability across our entire network. And yet, our base fare is only a part of the total fare. We hope that airports, particularly in Canada, will follow suit and lower their fees so that more people can be empowered to travel."

The first wave of this initiative focuses on northbound travel, providing a unique opportunity for Canadians returning home or guests from sunny destinations to discover the diverse landscapes of Canada. But the innovation doesn't stop there. Flair's agility in route planning means that $1 base fares will continue to pop up across a variety of routes, ensuring that affordable travel is always within reach.

Eric Tanner, VP of Revenue Management and Network Planning at Flair Airlines, highlighted the broader impact: "This is just the beginning. Our $1 base fares will be available across different routes and regions throughout the year, reflecting our commitment to democratizing air travel. Whether you're headed to the Rockies, the Atlantic, or anywhere else in our network, Flair will keep delivering affordable ways to see the world."

Travellers are encouraged to check Flair's $1 base fare page regularly, as routes will frequently change, driven by seasonality and demand. While the initial focus is on northbound travel, Flair's flexibility ensures that routes across the entire network will benefit from this offer, keeping the excitement and opportunity alive for travellers all year round.

With Flair Airlines, the journey is just as thrilling as the destination, and at $1, it's never been more accessible. Check back often and see where Flair's $1 base fares can take you next.

Press release: https://sg.finance.yahoo.com/news/flair ... 00865.html

This might actually be the ticket and rake in those ancillary fees and bring in the much needed profits Flair needs. Wishing them well with this new but tried before initiative. I recall Jetsgo tried this? https://www.cbc.ca/amp/1.547973

The Jetsgo situation has angered the president of the Consumers' Association of Canada who wants goverment to do a better job at monitoring the airline industry.

Mel Fruitman told CBC News that when an airline is offering $1 tickets, consumers should proceed with caution.

[Realitychex]

…not to mention record breaking losses.

It’s been attempted before many times and never ended well.

SG did the same thing way back when, with their sales and marketing team pole vaulting around the office as the cash flowed in as a result of this sales schemes, albeit at horrible yields. You can’t lose a little on every seat but make it up with volume, but that hasn’t stopped countless folks from trying.

On PVR-YVR and with a 92% l/f, Flair needs about $250 net of taxes per occupied seat to break even. That’s a lot excess bags and junk fees to get there from a dollar, especially when there’s no price insensitive, high yield traffic to push the average fare up on this sort of pure leisure route.

Airlines operating in the high tax world of Canadian aviation with solid bottom lines never need to resort to these sorts of gimmicks. Fares are like stock market prices. It’s easy to drop them, it’s very, very difficult to raise them when the expectation has been set that a fair price for a 5hr sector is $1.

In the Northern Hemisphere, everyone’s a genius in the airline business from June 25th until about 2 days after Labor Day Monday.

Then desperation sets in when Poindexter in Beanland points out that whilst revenues were sufficient to pay bills on time during the summer months, with the current yields and booking velocity, cash will be very, very tight by the end of Sept. Marching orders from on high will be to do what ever it takes to raise cash today to pay the bills, regardless on the impact down the road. Survival today is job #1. Tomorrow is another day.

We’ve seen this movie literally countless times.

[cdnavater]

…not to mention record breaking losses.

It’s been attempted before many times and never ended well.

SG did the same thing way back when, with their sales and marketing team pole vaulting around the office as the cash flowed in as a result of this sales schemes, albeit at horrible yields. You can’t lose a little on every seat but make it up with volume, but that hasn’t stopped countless folks from trying.

On PVR-YVR and with a 92% l/f, Flair needs about $250 net of taxes per occupied seat to break even. That’s a lot excess bags and junk fees to get there from a dollar, especially when there’s no price insensitive, high yield traffic to push the average fare up on this sort of pure leisure route.

Airlines operating in the high tax world of Canadian aviation with solid bottom lines never need to resort to these sorts of gimmicks. Fares are like stock market prices. It’s easy to drop them, it’s very, very difficult to raise them when the expectation has been set that a fair price for a 5hr sector is $1.

In the Northern Hemisphere, everyone’s a genius in the airline business from June 25th until about 2 days after Labor Day Monday.

Then desperation sets in when Poindexter in Beanland points out that whilst revenues were sufficient to pay bills on time during the summer months, with the current yields and booking velocity, cash will be very, very tight by the end of Sept. Marching orders from on high will be to do what ever it takes to raise cash today to pay the bills, regardless on the impact down the road. Survival today is job #1. Tomorrow is another day.

We’ve seen this movie literally countless times.

Surely, this time will be different

[Factchkr]

…not to mention record breaking losses.

It’s been attempted before many times and never ended well.

SG did the same thing way back when, with their sales and marketing team pole vaulting around the office as the cash flowed in as a result of this sales schemes, albeit at horrible yields. You can’t lose a little on every seat but make it up with volume, but that hasn’t stopped countless folks from trying.

On PVR-YVR and with a 92% l/f, Flair needs about $250 net of taxes per occupied seat to break even. That’s a lot excess bags and junk fees to get there from a dollar, especially when there’s no price insensitive, high yield traffic to push the average fare up on this sort of pure leisure route.

Airlines operating in the high tax world of Canadian aviation with solid bottom lines never need to resort to these sorts of gimmicks. Fares are like stock market prices. It’s easy to drop them, it’s very, very difficult to raise them when the expectation has been set that a fair price for a 5hr sector is $1.

In the Northern Hemisphere, everyone’s a genius in the airline business from June 25th until about 2 days after Labor Day Monday.

Then desperation sets in when Poindexter in Beanland points out that whilst revenues were sufficient to pay bills on time during the summer months, with the current yields and booking velocity, cash will be very, very tight by the end of Sept. Marching orders from on high will be to do what ever it takes to raise cash today to pay the bills, regardless on the impact down the road. Survival today is job #1. Tomorrow is another day.

We’ve seen this movie literally countless times.

agree, this is not good! airline to watch in US is spirit, currentlyon life support

[porcsord]

(Bloomberg) — Canada’s Flair Airlines Ltd. is in talks to raise funds that would help ease the debt burden at the budget carrier beset by aircraft repossessions, back taxes and a financial backer accused of fraud.

Interim Chief Executive Officer Maciej Wilk is in discussions with “financial institutions that are not shy of taking a slightly higher-risk investment” to participate in an ongoing recapitalization of the low-cost carrier, he said in a phone interview. New lenders or equity funding would help the airline address its significant debt load, which he wouldn’t quantify.

Canada’s Flair Airlines Ltd. is in talks to raise funds that would help ease the debt burden at the budget carrier beset by aircraft repossessions, back taxes and a financial backer accused of fraud.

“In order really to give us breathing space and comfort to continue a restructuring of the company, I think we would be very happy if we received like a hundred million” Canadian dollars, Wilk said by phone. “Just to be clear, it’s not like this is something that we desperately need right now.”

Flair ran into financial trouble after higher costs upset its efforts to rapidly scale up as the pandemic eased. Lessors repossessed four Boeing Co. 737 aircraft in March 2023 — stranding passengers headed for spring break — and its former lead investor, 777 Partners LLC, has faced accusations of fraud in court. Another 777-backed carrier, Australia’s Bonza, entered liquidation last month.

Flair still owes the Canadian government tens of millions in back taxes, the Canadian Press reported in January, prompting them to arrange a payment plan with the Canada Revenue Agency. A court dispute over the planes, which Flair alleges were “unlawfully” seized by Airborne Capital Ltd., is ongoing.

777 is still a lender to Flair, Wilk said, but its stake has fallen to less than 10% from about 25%, and it no longer has board seats. Advantage Capital Holdings LLC, a New York-based insurance company which held senior rights to collateral associated with 777, has provided support, Wilk said, declining to provide details.

Representatives for 777 and Advantage Capital, known as A-Cap, didn’t respond to requests for comment.

If it can secure its finances, there’s an opportunity for Flair to take advantage of its position as “last man standing” in Canada, since competition has eased, Wilk said. In recent months Lynx Air and Canada Jetlines Operations Ltd. filed for creditor protection, while the country’s second-biggest carrier, WestJet Airlines Ltd., axed low-fare brand Swoop last year.

Wilk, a veteran of LOT Polish Airlines, joined Flair last year as chief operating officer and became interim CEO in June. He said the Edmonton-based carrier’s fleet ownership has been restructured, and the company has new lessors including SMBC Aviation Capital Ltd., BOC Aviation Ltd. and Jackson Square Aviation LLC.

Wilk wants to expand to at least 24 jets after next summer, up from 20 today, he said. He added that the existing structure could handle as many as 35 planes, including older Boeing 737-800s.

“The competitive environment has changed dramatically for Flair,” he said. “Now the business case for any investor to consider Flair as an investment target is much more compelling.”

https://financialpost.com/pmn/business- ... ance-sheet

Edited: copy and pasting is hard.

[rookiepilot]

(Bloomberg) — Canada’s Flair Airlines Ltd. is in talks to raise funds that would help ease the debt burden at the budget carrier beset by aircraft repossessions, back taxes and a financial backer accused of fraud.

Interim Chief Executive Officer Maciej Wilk is in discussions with “financial institutions that are not shy of taking a slightly higher-risk investment” to participate in an ongoing recapitalization of the low-cost carrier, he said in a phone interview. New lenders or equity funding would help the airline address its significant debt load, which he wouldn’t quantify.

Canada’s Flair Airlines Ltd. is in talks to raise funds that would help ease the debt burden at the budget carrier beset by aircraft repossessions, back taxes and a financial backer accused of fraud.

“In order really to give us breathing space and comfort to continue a restructuring of the company, I think we would be very happy if we received like a hundred million” Canadian dollars, Wilk said by phone. “Just to be clear, it’s not like this is something that we desperately need right now.”

Flair ran into financial trouble after higher costs upset its efforts to rapidly scale up as the pandemic eased. Lessors repossessed four Boeing Co. 737 aircraft in March 2023 — stranding passengers headed for spring break — and its former lead investor, 777 Partners LLC, has faced accusations of fraud in court. Another 777-backed carrier, Australia’s Bonza, entered liquidation last month.

Flair still owes the Canadian government tens of millions in back taxes, the Canadian Press reported in January, prompting them to arrange a payment plan with the Canada Revenue Agency. A court dispute over the planes, which Flair alleges were “unlawfully” seized by Airborne Capital Ltd., is ongoing.

777 is still a lender to Flair, Wilk said, but its stake has fallen to less than 10% from about 25%, and it no longer has board seats. Advantage Capital Holdings LLC, a New York-based insurance company which held senior rights to collateral associated with 777, has provided support, Wilk said, declining to provide details.

Representatives for 777 and Advantage Capital, known as A-Cap, didn’t respond to requests for comment.

If it can secure its finances, there’s an opportunity for Flair to take advantage of its position as “last man standing” in Canada, since competition has eased, Wilk said. In recent months Lynx Air and Canada Jetlines Operations Ltd. filed for creditor protection, while the country’s second-biggest carrier, WestJet Airlines Ltd., axed low-fare brand Swoop last year.

Wilk, a veteran of LOT Polish Airlines, joined Flair last year as chief operating officer and became interim CEO in June. He said the Edmonton-based carrier’s fleet ownership has been restructured, and the company has new lessors including SMBC Aviation Capital Ltd., BOC Aviation Ltd. and Jackson Square Aviation LLC.

Wilk wants to expand to at least 24 jets after next summer, up from 20 today, he said. He added that the existing structure could handle as many as 35 planes, including older Boeing 737-800s.

“The competitive environment has changed dramatically for Flair,” he said. “Now the business case for any investor to consider Flair as an investment target is much more compelling.”

https://financialpost.com/pmn/business- ... ance-sheet

Edited: copy and pasting is hard.

“In order really to give us breathing space and comfort to continue a restructuring of the company, I think we would be very happy if we received like a hundred million” Canadian dollars, Wilk said by phone. “Just to be clear, it’s not like this is something that we desperately need right now.”


Uh Huh….

“The competitive environment has changed dramatically for Flair,” he said. “Now the business case for any investor to consider Flair as an investment target is much more compelling.”

That’s why your soliciting money in the newspaper? Never mind. I don’t understand these adult conversations like the above experts do.

[Aviator12]

https://www.theglobeandmail.com/report- ... cle998025/

Seems familiar…

[Inverted2]

[rookiepilot]

What assets does Flair own that any adventurous lender could count on for security?

[boeingboy]

What assets does Flair own that any adventurous lender could count on for security?

Nothing. Any assets they have are going to be tied to the Federal governments court order.

[khedrei]

Just saw one with blue winglets. Didn't match their line green paint scheme. Are the Bonza ones blue? There was one that looked partially painted that I saw a few weeks back. Almost as if it had been sold and the new owner was painting and it's like it had a flair sticker on it. Not sure.

[Arnie Pye]

What assets does Flair own that any adventurous lender could count on for security?

People. That's it. Pilots and leases. Nothing more.

[rookiepilot]

What assets does Flair own that any adventurous lender could count on for security?

People. That's it. Pilots and leases. Nothing more.

Then I am curious on what terms anyone would put money in.

[lament]

Did any of you jokers proclaiming $1 fares as the death knell of Flair actually look into it at all?

The only seats being offered for $1 base fare are the northbound flights from places like CUN during the first week or so of the season that Flair is operating there.

Almost nobody is booking a return flight to CUN for less than a week so those flights are empty anyways. Put someone on the flight for $1 and sell them a beer and Flair is probably better off.

It's just marketing.

[Canadaflyer46]

What assets does Flair own that any adventurous lender could count on for security?

People. That's it. Pilots and leases. Nothing more.

Then I am curious on what terms anyone would put money in.

They won’t. No one will be investing. Flair will likely be done before the end of the year. Everyone working there has had plenty of warning.

[SPR]

Did any of you jokers proclaiming $1 fares as the death knell of Flair actually look into it at all?

The only seats being offered for $1 base fare are the northbound flights from places like CUN during the first week or so of the season that Flair is operating there.

Almost nobody is booking a return flight to CUN for less than a week so those flights are empty anyways. Put someone on the flight for $1 and sell them a beer and Flair is probably better off.

It's just marketing.

That's because Canadian regulations require that advertised fares for flights originating in Canada be all-inclusive, meaning taxes and fees as well as the base fare. They would be offering $1 tickets for domestic flights if they were allowed to, but they can't. Right now, their "Deals" page shows $19 all-in for YXX-YEG, $22 for YQT-YYZ, $26 for YVR-YLW, and $33 for YXX-YYC, and the only reason those aren't $1 fares is because they legally can't advertise them as such. Or are you suggesting that those routes are also completely full in one direction and anything going the other way is just gravy?

Also, as a side note, those aren't just individual seats being advertised as a way to attract customers, with most seats going for higher fares; they're selling every seat for the same price, and looking at the calendar through September shows that the fares are the same on many days as they are in the "Deals". You can buy YXX-YYC for $33 on 14 days this month. I hope those ultra low cost passengers are flashing the Black Card to buy all the extras for those sweet, sweet ancillary fees...

[lament]

Did any of you jokers proclaiming $1 fares as the death knell of Flair actually look into it at all?

The only seats being offered for $1 base fare are the northbound flights from places like CUN during the first week or so of the season that Flair is operating there.

Almost nobody is booking a return flight to CUN for less than a week so those flights are empty anyways. Put someone on the flight for $1 and sell them a beer and Flair is probably better off.

It's just marketing.

That's because Canadian regulations require that advertised fares for flights originating in Canada be all-inclusive, meaning taxes and fees as well as the base fare. They would be offering $1 tickets for domestic flights if they were allowed to, but they can't. Right now, their "Deals" page shows $19 all-in for YXX-YEG, $22 for YQT-YYZ, $26 for YVR-YLW, and $33 for YXX-YYC, and the only reason those aren't $1 fares is because they legally can't advertise them as such. Or are you suggesting that those routes are also completely full in one direction and anything going the other way is just gravy?

Also, as a side note, those aren't just individual seats being advertised as a way to attract customers, with most seats going for higher fares; they're selling every seat for the same price, and looking at the calendar through September shows that the fares are the same on many days as they are in the "Deals". You can buy YXX-YYC for $33 on 14 days this month. I hope those ultra low cost passengers are flashing the Black Card to buy all the extras for those sweet, sweet ancillary fees...

I'm not going to go through each one but I'll take your first example. YXX YEG is not a $1 base fair:

yxxyeg.png (49.06 KiB) Viewed 5992 times

CUN YEG (on very limited dates) would be an example of a $1 base fare:

cunyeg.png (57.1 KiB) Viewed 5992 times

[boeingboy]

Did any of you jokers proclaiming $1 fares as the death knell of Flair actually look into it at all?

The only seats being offered for $1 base fare are the northbound flights from places like CUN during the first week or so of the season that Flair is operating there.

Almost nobody is booking a return flight to CUN for less than a week so those flights are empty anyways. Put someone on the flight for $1 and sell them a beer and Flair is probably better off.

It's just marketing.

That's because Canadian regulations require that advertised fares for flights originating in Canada be all-inclusive, meaning taxes and fees as well as the base fare. They would be offering $1 tickets for domestic flights if they were allowed to, but they can't. Right now, their "Deals" page shows $19 all-in for YXX-YEG, $22 for YQT-YYZ, $26 for YVR-YLW, and $33 for YXX-YYC, and the only reason those aren't $1 fares is because they legally can't advertise them as such. Or are you suggesting that those routes are also completely full in one direction and anything going the other way is just gravy?

Also, as a side note, those aren't just individual seats being advertised as a way to attract customers, with most seats going for higher fares; they're selling every seat for the same price, and looking at the calendar through September shows that the fares are the same on many days as they are in the "Deals". You can buy YXX-YYC for $33 on 14 days this month. I hope those ultra low cost passengers are flashing the Black Card to buy all the extras for those sweet, sweet ancillary fees...

I'm not going to go through each one but I'll take your first example. YXX YEG is not a $1 base fair:
yxxyeg.png

CUN YEG (on very limited dates) would be an example of a $1 base fare:
cunyeg.png

Ok - it's not $1.....but its not like $8.64 is any better!

[Gino Under]

Flair has been “going out of business” since day one.
Meanwhile, 4 years later…
there they are.

What many in Canadian aviation aren’t familiar with is the LCC model. If they were, they’d understand the $1.00 fare marketing “gimmick” and how it works. But researching facts is a waste of time for the average know it all.

[fish4life]

Flair has been “going out of business” since day one.
Meanwhile, 4 years later…
there they are.

What many in Canadian aviation aren’t familiar with is the LCC model. If they were, they’d understand the $1.00 fare marketing “gimmick” and how it works. But researching facts is a waste of time for the average know it all.

It’s not like they are here 4 years later making money and expanding. They have back taxes, airplanes repossessed and a CEO qouted saying there will be a day of reckoning on the balance sheet etc.

[co-joe]

Flair has been “going out of business” since day one.
Meanwhile, 4 years later…
there they are.

What many in Canadian aviation aren’t familiar with is the LCC model. If they were, they’d understand the $1.00 fare marketing “gimmick” and how it works. But researching facts is a waste of time for the average know it all.

I think the Interim CEO said it was a way to show people just how high the taxes and fees are on flights in Canada. I bet the $1 fare ends up costing $200 by the time the AIFs and taxes are paid, which has to be eye opening. When you see your power or gas bill, you know how badly we're getting screwed on fees and taxes, but since the federal government forced airlines to list one price, people have forgotten how far the government's hands are into our pockets when we travel.

[cdnavater]

Flair has been “going out of business” since day one.
Meanwhile, 4 years later…
there they are.

What many in Canadian aviation aren’t familiar with is the LCC model. If they were, they’d understand the $1.00 fare marketing “gimmick” and how it works. But researching facts is a waste of time for the average know it all.

I think the Interim CEO said it was a way to show people just how high the taxes and fees are on flights in Canada. I bet the $1 fare ends up costing $200 by the time the AIFs and taxes are paid, which has to be eye opening. When you see your power or gas bill, you know how badly we're getting screwed on fees and taxes, but since the federal government forced airlines to list one price, people have forgotten how far the government's hands are into our pockets when we travel.

You’re full of shit or he’s full of it, when you select a flight, immediately the breakdown of fares is there, shows exactly what the charges are each tax or fee.
And unless you’re talking return trip there is no way the taxes and fees end up 200, even round trip that would be a stretch!

[Stratopaused]

I bet the $1 fare ends up costing $200 by the time the AIFs and taxes are paid, which has to be eye opening. When you see your power or gas bill, you know how badly we're getting screwed on fees and taxes, but since the federal government forced airlines to list one price, people have forgotten how far the government's hands are into our pockets when we travel.

I mean, you could just scroll up a couple of posts and see the screenshots that lament has. The domestic flight has $10.36 of taxes and fees on a base fare of $8.64, whereas the flight departing CUN has $80.84 of taxes and fees on a base fare of $1. Also, since the $1 fares are all on flights returning to Canada, how would that show what the Canadian government charges?

[Apestogetherstrong]

Flair has been “going out of business” since day one.
Meanwhile, 4 years later…
there they are.

What many in Canadian aviation aren’t familiar with is the LCC model. If they were, they’d understand the $1.00 fare marketing “gimmick” and how it works. But researching facts is a waste of time for the average know it all.

I think the Interim CEO said it was a way to show people just how high the taxes and fees are on flights in Canada. I bet the $1 fare ends up costing $200 by the time the AIFs and taxes are paid, which has to be eye opening. When you see your power or gas bill, you know how badly we're getting screwed on fees and taxes, but since the federal government forced airlines to list one price, people have forgotten how far the government's hands are into our pockets when we travel.

What happened to F50 errr.. 50 planes by 2025 errrr… 2027 I mean errr… 46 planes cuz we lost em to the lessor’s err… co-joe is the only Captain at Flair who is still on avcanada lmao

[co-joe]

What happened to F50 errr.. 50 planes by 2025 errrr… 2027 I mean errr… 46 planes cuz we lost em to the lessor’s err… co-joe is the only Captain at Flair who is still on avcanada lmao

Boeing stopped making aeroplanes, but you know that already...Troll