CTA launches formal probe into Flair

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Boeingman
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Re: CTA launches formal probe into Flair

Post by Boeingman »

elite wrote: Tue Apr 19, 2022 10:39 am Flair has received 11.3 millions government funding to date. 3 millions from federal economic development agency of southern Ontario in April 2021 and 8.3 from western economic diversification in August 2021. The funding from 777 was being advanced at the same time Flair was taking funding from the government. It is ridiculous to suggest breaking foreign ownership and control laws is no big deal. it is and every other airline follows them.
It’s weird that all of you guys insist that flair broke the law. There has been no verdict, and the media isn’t accurately reporting the whole situation and sensationalizing the situation. Heck, 777 partners only leases less than 6 737 max aircrafts, with individual lessors also leasing out the rest.
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Re: CTA launches formal probe into Flair

Post by Longtimer »

Canadian aviation industry opposes Flair Airlines’ bid for 18-month exemption from ownership rules
https://airlinecouncil.ca/canadas-major ... -airlines/
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elite
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Re: CTA launches formal probe into Flair

Post by elite »

That Flair is in breach of foreign ownership and control laws has already been presented by the CTA in its ruling, but instead of replying to it and taking concrete steps to bring itself into compliance, Flair has tried to request a year and half more advantage over its competitors from another government agency, the minister of Transport!

More developments:

More news: https://www.theglobeandmail.com/busines ... -18-month/


Canadian aviation industry opposes Flair Airlines’ bid for 18-month exemption from ownership rules

ERIC ATKINSTRANSPORTATION REPORTER
PUBLISHED 6 HOURS AGO

A large swath of Canada’s aviation sector said on Tuesday it opposes Edmonton-based Flair Airlines’ appeal to the government to be temporarily exempt from Canadian ownership requirements.

The Canadian Transportation Agency has issued a preliminary finding that Flair might be controlled by a U.S. investor in violation of Canadian laws, and has given the airline until May 3 to make changes or face the possible loss of its operating licence. Flair has asked Transport Canada for an 18-month exemption to the regulations to address the regulator’s objections.

Two aviation industry groups, representing Air Canada, WestJet and several other companies, on Tuesday released a joint statement opposing Flair’s request for an exemption.

“If granted, this unprecedented request would allow Flair to continue operating outside the bounds of existing Canadian law, setting a troubling precedent while also threatening consumer confidence in the sector, at a time when the travel industry is working hard to provide a strong and sustainable future for air travel for Canadians,” said the statement from the National Airlines Council and the Air Transport Association of Canada.

Flair Airlines could lose operating licence after Canadian control of company questioned

To operate as a domestic airline, a company’s foreign investment cannot exceed 49 per cent or 25 per cent by a single entity. Nor can a non-Canadian exert control over the airline, a situation the CTA calls “control in fact.”

The CTA’s investigation found Flair’s 25-per-cent owner, Miami’s 777 Partners, holds “dominant” influence over the airline by being a large lender and provider of leased aircraft. Three of Flair’s five directors are connected to 777 Partners. “Flair’s dependence on 777 for financing, and 777′s ability and apparent willingness to exert its control over Flair, are strong indicators that Flair is controlled in fact by 777,” the CTA said in its preliminary decision released on March 3.

John McKenna, head of the Air Transport Association of Canada, said his members are not trying to shut down Flair, but want a “level playing field” as the sector tries to emerge from the deep financial losses of the pandemic. “We’re saying, ‘Play along by the same rules as everyone else,’” Mr. McKenna said by phone.

The National Airlines Council represents Canada’s biggest airlines: Air Canada, Air Transat, Jazz Aviation and WestJet. The Air Transport Association of Canada speaks for about 65 airlines and more than 100 related companies, including Porter Airlines, PAL Airlines and Nolinor Aviation.

The industry groups said their members are ready to mitigate the impact on workers and travellers of a possible shutdown or licence suspension of Flair by flying home stranded passengers or through other measures.

Tuesday’s joint release from the industry groups said domestic control of an airline is not merely “nice to have,” but an essential requirement that ensures the airline is committed to Canada, its routes and the industry’s viability.

By failing to comply with basic, long-standing Canadian ownership and control rules, Flair places considerable uncertainty on the shoulders of travelers, potentially leaving them stranded without a backstop,” the group’s statement said.

Flair issued a statement accusing the industry groups of spreading fear and confusion in the marketplace.

“It’s no surprise that Canada’s big air carriers want Canadians to pay more for airfare, sow confusion with passengers and eliminate the competition,” the statement said. “No matter how much they want to take us down, Flair is here to stay.”

The airline, in its application to the government for the exemption, said the loss or suspension of its licence would be bad for travellers, its employees and contractors. Flair said its low fares offer affordable travel, and connect communities not well served by other airlines, and that it is confident it will address a majority of the CTA’s concerns by May 3. But it added: “There are a number of practical reasons why Flair requires more time to comprehensively address the CTA’s concerns, as Canadian air travel returns to normal levels following the challenges presented by the COVID-19 pandemic.”

Flair did not address requests from The Globe and Mail to explain these reasons.

Transport Canada is holding a public interest assessment on Flair’s exemption request, collecting submissions from interested parties. The deadline for submissions was on April 18.

WestJet, in its submission to Transport Canada on Flair, said it would be inappropriate for the transport minister to grant an exemption and intervene in the jurisdiction of the CTA, an independent quasi-judicial body.

“Other than its deliberate violation of the law, there is simply nothing unique about Flair,” WestJet said. “If Flair’s licence were suspended or cancelled, other Canadian airlines – that respect the legislative requirements for holding domestic licences – will fill the gap and provide comparable competition, local service and jobs.”

The CTA has declined to comment on Flair’s request to Transport Canada.

Flair’s chief executive officer, Stephen Jones, is scheduled to hold a web-streamed press conference on Thursday to address the CTA’s investigation.

The Globe has reported Flair owed $129-million to 777 Partners in late 2020. The investor took a stake in Flair in 2019. In early 2021, Flair said it would lease 13 Boeing 737 Max planes from 777 Partners, a fleet that would grow to 50 in five years.
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nynybear
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Re: CTA launches formal probe into Flair

Post by nynybear »

About the National Airlines Council of Canada:

The National Airlines Council of Canada represents Canada’s largest national and international passenger air carriers: Air Canada, Air Transat, Jazz Aviation LP and WestJet.

Just what the heck exactly did you think they would say? 🙄

And sadly that is a 'large swath' of Canada's aviation sector.
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Re: CTA launches formal probe into Flair

Post by Tolip »

Boeingman wrote: Tue Apr 19, 2022 2:04 pm
elite wrote: Tue Apr 19, 2022 10:39 am Flair has received 11.3 millions government funding to date. 3 millions from federal economic development agency of southern Ontario in April 2021 and 8.3 from western economic diversification in August 2021. The funding from 777 was being advanced at the same time Flair was taking funding from the government. It is ridiculous to suggest breaking foreign ownership and control laws is no big deal. it is and every other airline follows them.
It’s weird that all of you guys insist that flair broke the law. There has been no verdict, and the media isn’t accurately reporting the whole situation and sensationalizing the situation. Heck, 777 partners only leases less than 6 737 max aircrafts, with individual lessors also leasing out the rest.
Your right, their is no verdict yet. However there will be one soon, and I'm sure we are all very very curious to see its outcome. And while you are right that many are probably over reporting on this situation, it seems to me that maybe your down playing it a bit? 777 partners currently has majority control over flairs board, 25 percent stake in the company, is it's basically sole financial supporter (as flairs other major stake holder is currently sueing the company ) and is leasing almost flairs entire fleet (flair was only operating 3 tails before 777 came in).

So if you do the math, 777 has majority board control, controls the flow of money for the company, and owns a vast majority of its fleet. It definitely is a cause for concern, and absolutely a solid case for the "control in fact" legal argument. The worst case scenario here is that Flair loses its operating certificate, and with flairs assorted history I really do not think TC is gunna give them any extensions or free passes. If I was working at Flair, I would.be very concerned. Especially with how they just asked for an 18 month extension, this obviously shows that Flair is not in a good position to disprove these allegations at this time. And if they cant disprove it, is that not a pritty good indicator that they maybe guilty?
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nynybear
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Re: CTA launches formal probe into Flair

Post by nynybear »

1. F8 currently leases only 5 of their aircraft from 777 Partners.

2. 777 occupies 3 of the 12 available seats on the Board (7 vacant).

3. F8 is not yet required to repay 777.

4. F8 is in fact Canadian owned.

5. 18 month delay request is to shift debt and wait for a more favourable market environment to launch the IPO.

6. Thats why the 'large swath' of Canada's aviation sector (2 companies with their own skeletons) are in opposition to the extension and are fuelling the media and daytime TV watchers who post here.
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goingmissed
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Re: CTA launches formal probe into Flair

Post by goingmissed »

nynybear wrote: Wed Apr 20, 2022 9:16 am 1. F8 currently leases only 5 of their aircraft from 777 Partners.

2. 777 occupies 3 of the 12 available seats on the Board (7 vacant).

3. F8 is not yet required to repay 777.

4. F8 is in fact Canadian owned.

5. 18 month delay request is to shift debt and wait for a more favourable market environment to launch the IPO.

6. Thats why the 'large swath' of Canada's aviation sector (2 companies with their own skeletons) are in opposition to the extension and are fuelling the media and daytime TV watchers who post here.
1. (5 + 7)/(13 current + 7 addition by 'Summer 2022') aircraft = 60%
2. 3/(12-7) = 60%
3. I'm not yet required to pay my back taxes
4. That is up for debate
5. Not going to happen with current allegations of willfully flouting ownership and control rules
6. Absolutely true, but still whataboutism.
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co-joe
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Re: CTA launches formal probe into Flair

Post by co-joe »

goingmissed wrote: Wed Apr 20, 2022 9:49 am 1. (5 + 7)/(13 current + 7 addition by 'Summer 2022') aircraft = 60%
2. 3/(12-7) = 60%
3. I'm not yet required to pay my back taxes
4. That is up for debate
5. Not going to happen with current allegations of willfully flouting ownership and control rules
6. Absolutely true, but still whataboutism.
So currently, (not some future that could happen);

1. 5/13 = 38%
2. 3/12 = 25%
3. If the debt repayment isn't currently required, then it isn't an example of control, can revenue Canada come after you for 2022 taxes now?
4. Onex is mostly owned by Americans and its board is mostly American, yet somehow that's ok to the CTA
5. Quoting that Air Canada and Westjet don't like it by saying that the association that they are the only members of doesn't like it holds about as much weight as when ATAC lobbied against the new safer duty regs. Duh of course they don't want competition.
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goingmissed
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Re: CTA launches formal probe into Flair

Post by goingmissed »

co-joe wrote: Wed Apr 20, 2022 10:29 am
goingmissed wrote: Wed Apr 20, 2022 9:49 am 1. (5 + 7)/(13 current + 7 addition by 'Summer 2022') aircraft = 60%
2. 3/(12-7) = 60%
3. I'm not yet required to pay my back taxes
4. That is up for debate
5. Not going to happen with current allegations of willfully flouting ownership and control rules
6. Absolutely true, but still whataboutism.
So currently, (not some future that could happen);

1. 5/13 = 38%
2. 3/12 = 25%
3. If the debt repayment isn't currently required, then it isn't an example of control, can revenue Canada come after you for 2022 taxes now?
4. Onex is mostly owned by Americans and its board is mostly American, yet somehow that's ok to the CTA
5. Quoting that Air Canada and Westjet don't like it by saying that the association that they are the only members of doesn't like it holds about as much weight as when ATAC lobbied against the new safer duty regs. Duh of course they don't want competition.
The "future that could happen" is happening. The aircraft are already built and the leases signed.

* Edit: after briefly looking into the new aircraft, I am uncertain where the aircraft are coming from. I am unable to confirm whether there is anything more than a press release regarding additional aircraft.

1. 60% based on 2022 numbers that will happen unless the CTA intervenes.
2. 60% because if there are 5 filled board seats and 3 of them are under the control of a single entity, that entity has 3/5 of the votes
3. A loan is a loan is a loan. It's not a gift.
4. Whataboutism. With that said, Onex is headquartered in Toronto with a CEO who was born in Manitoba and lives in Toronto.
5. Still true and still whataboutism.
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Last edited by goingmissed on Wed Apr 20, 2022 10:48 am, edited 2 times in total.
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Re: CTA launches formal probe into Flair

Post by BTD »

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Re: CTA launches formal probe into Flair

Post by Soyer »

Loans are permitted to be held by foreigners. The structure of the loan is what the CTA will look at and if that structure permits the foreigner to exert undue control.

Leases - 777 purchased in bulk in order to establish a deep discount. The aircraft they have purchased are not only going to Flair but to other airlines as well. As the aircraft are leased to airlines those aircraft are SOLD by 777 to other lessors (at a profit). The sale of leases is very common as NO lessor will lease more than a handful of aircraft to one company as the risk is high. Look at any airline and their leases will be spread across many lessors.

Finally, the CTA does NOT shut down an airline if they determine, based on their investigation and based on the nebulous concept of control in fact, that the airline is offside. Instead their expectation is that the airline is informed of HOW they are offside and asked to provide a plan to move the company towards the CTA ruling regarding compliance. It is only if a company refuses to or is unable to move to compliance that the CTA will enforce their order.



goingmissed wrote: Wed Apr 20, 2022 10:45 am
co-joe wrote: Wed Apr 20, 2022 10:29 am
goingmissed wrote: Wed Apr 20, 2022 9:49 am 1. (5 + 7)/(13 current + 7 addition by 'Summer 2022') aircraft = 60%
2. 3/(12-7) = 60%
3. I'm not yet required to pay my back taxes
4. That is up for debate
5. Not going to happen with current allegations of willfully flouting ownership and control rules
6. Absolutely true, but still whataboutism.
So currently, (not some future that could happen);

1. 5/13 = 38%
2. 3/12 = 25%
3. If the debt repayment isn't currently required, then it isn't an example of control, can revenue Canada come after you for 2022 taxes now?
4. Onex is mostly owned by Americans and its board is mostly American, yet somehow that's ok to the CTA
5. Quoting that Air Canada and Westjet don't like it by saying that the association that they are the only members of doesn't like it holds about as much weight as when ATAC lobbied against the new safer duty regs. Duh of course they don't want competition.
The "future that could happen" is happening. The aircraft are already built and the leases signed.

* Edit: after briefly looking into the new aircraft, I am uncertain where the aircraft are coming from. I am unable to confirm whether there is anything more than a press release regarding additional aircraft.

1. 60% based on 2022 numbers that will happen unless the CTA intervenes.
2. 60% because if there are 5 filled board seats and 3 of them are under the control of a single entity, that entity has 3/5 of the votes
3. A loan is a loan is a loan. It's not a gift.
4. Whataboutism. With that said, Onex is headquartered in Toronto with a CEO who was born in Manitoba and lives in Toronto.
5. Still true and still whataboutism.
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Re: CTA launches formal probe into Flair

Post by Boeingman »

https://windsor.ctvnews.ca/yqg-travelle ... -1.5870802

Flair Airlines CEO Stephen Jones came out swinging against “Big Air” Thursday during a news conference about regulatory review.

“There is zero chance Flair will lose its licence on May the third,” says Jones. “The May third deadline that’s been widely reported in the media is not a drop dead date.”

Jones says Flair has until that date to respond to the Canadian Transportation Agency (CTA) over their review of the ultra-low cost carriers’ corporate governance and finances.

In a review launched on March 3, the CTA wrote, “Flair may not be controlled in fact by Canadians and may, therefore, not be ‘Canadian’, as defined in the Canada Transportation Act, SC 1996, c 10.”

In order to be a licensed domestic airline, the company must be incorporated in Canada and at least 51 per cent of voting interests must be owned and controlled by Canadians, according to the CTA.

Jones says 58 per cent of the voting shares in Flair are owned by Canadians and no non-Canadian owns more than 25 per cent of the airline.

Flair Airlines, according to Jones, is incorporated in British Columbia.

“The CTA accepts that non-Canadians are entitled to take steps to protect the value of their investment,” says Jones. “The CTA raised concerns regarding requirements within Flair’s governing documents to ensure that Canadian control of decision-making is maintained.”

Jones says the CTA “called out the depth” of Flairs’ relationship with a company called 777 Partners, one of their creditors, shareholders and aircraft lessors.

777 Partners is based in Miami, which Jones says helped Flair Airlines stay afloat during the pandemic.

“777 Partners never used the fact that they were providing us cash to exert day-to-day control. As CEO, I run Flair Airlines only with my management team and the more than 700 people working hard every day for Flair,” says Jones.

Jones says Flair did get some emergency funding to grow regional connectivity but says the airline was never a part of the “billions and billions” of bailout funding provided to other carriers like Air Canada or West Jet.

“Instead we turned to our shareholders to survive and 777 Partners provided a lifeline to protect thousands of jobs from coast-to-coast,” says Jones.

He says it’s a priority to repay the debt by running a successful airline, refinancing some loans and ultimately listing Flair on the Toronto Stock Exchange.

Jones says they have already repaid $18 million to 777 Partners but adds, “the refinancing of the balance of the debt will take some time and it is for this reason alone that we have sought a time-bound, 18-month exemption from the Ministry of Transport.”

In terms of governance, Jones says CTA found their “Unanimous Shareholders Agreement did not enforce Canadian control explicitly enough.”

He says the board agreed the document, created in 2018, needed revisions to clarify that Flair is indeed controlled by Canadians.

In a new agreement, ratified by the board last week, Jones says 777 Partners lost their veto power and can only appoint two directors to the board, down from three.

Flair’s board will also now have nine total members; seven Canadians and two non-Canadians.


“777 Partners wholeheartedly supported the changes and this amended Unanimous Shareholders Agreement will form part of Flairs’ response to CTA on May the third,” says Jones.

Jones believes these changes should ease at least 80 per cent of the CTA’s concerns with their operation.

When asked his opinion of Air Canada and West Jet publicly denouncing the payment exemption, Jones told reporters he’s not surprised by the actions of what he calls “big air.”

“These guys have been ripping off the Canadian public for decades,” says Jones. “When I go out and talk to people everybody’s complaining about their duopoly. So don’t be surprised that they get defensive when a company that’s genuinely efficient at providing low-cost airfares comes into the market. It’s a threat to their existence.”

In an eight-page letter to the CTA, Air Passenger Rights talks about this duopoly seen here.

Gabor Lukacs notes Air Canada and West Jet have received at least 90 per cent of the market share on flights in Canada between 2014 and 2019.

“The entry of a new competitor in such a highly concentrated market undoubtedly increases competition and lowers fares,” writes Lukacs who says Flair’s predecessor airline (NewLeaf) forced a 23 per cent reduction in fares in Canada.

Jones was asked about public criticism of Flair’s customer service and changes to flight plans.

“There’s also issues Flair has had that I would describe as growing pains,” says Jones. “There’s an industry-wide shortage of staff, in particular the on-ground staff.”

Jones admits their customer service department needed some help and says they have now boosted their staff from 10 to more than 70 working in customer service.

“I don’t claim that we’re perfect but I apologize to those people who we have disappointed,” says Jones.

Officals CTA said they will not comment as the matter is before the agency. Windsor International Airport could not be reached for comment.

Here is the full statement by the CTA about Flair:

The Canadian Transportation Agency (Agency) issued March 3rd, 2022 its preliminary determination that Flair may not be controlled in fact by Canadians and may, therefore, not be ‘’Canadian’’, as defined in the Canada Transportation Act, SC 1996, c 10.

Flair holds licenses authorizing domestic, scheduled international, and non-scheduled international air services. Pursuant to the Act, Flair must be Canadian to provide these air services. Three requirements must be met for an air carrier to be considered Canadian: (1) the incorporation or formation requirement, (2) the voting interest requirement, and (3) the control in fact requirement.

The Agency has provided Flair with the opportunity to respond, no later than 60 calendar days from the date of issuance. At the end of the review process, the Agency will issue a final public determination with reasons and its conclusions, which will be posted on its website.

The Agency does not comment on its determinations as they speak for themselves.
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Re: CTA launches formal probe into Flair

Post by DanWEC »

Anything that quotes Gabor Luckaks makes me viscerally wretch in revulsion.
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Re: CTA launches formal probe into Flair

Post by Cavalier44 »

DanWEC wrote: Thu Apr 21, 2022 7:13 pm Anything that quotes Gabor Luckaks makes me viscerally wretch in revulsion.
Isn't he still on Flair's payroll working as a consultant? Everything that comes out of his mouth at this point should be recognized as being clearly biased, not that he had much credibility to begin with.
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Re: CTA launches formal probe into Flair

Post by tbaylx »

Cavalier44 wrote: Fri Apr 22, 2022 7:56 am
DanWEC wrote: Thu Apr 21, 2022 7:13 pm Anything that quotes Gabor Luckaks makes me viscerally wretch in revulsion.
Isn't he still on Flair's payroll working as a consultant? Everything that comes out of his mouth at this point should be recognized as being clearly biased, not that he had much credibility to begin with.
He is not.
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Re: CTA launches formal probe into Flair

Post by SPR »

nynybear wrote: Wed Apr 20, 2022 9:16 am 1. F8 currently leases only 5 of their aircraft from 777 Partners.

2. 777 occupies 3 of the 12 available seats on the Board (7 vacant).

3. F8 is not yet required to repay 777.

4. F8 is in fact Canadian owned.

5. 18 month delay request is to shift debt and wait for a more favourable market environment to launch the IPO.

6. Thats why the 'large swath' of Canada's aviation sector (2 companies with their own skeletons) are in opposition to the extension and are fuelling the media and daytime TV watchers who post here.
I've found seven aircraft that are leased from 777 Partners and are currently in operation, which is half of their current fleet, and the percentage will only grow as more are delivered.

https://financialpost.com/transportatio ... 1650579196

According to Stephen Jones, Flair's CEO, as of yesterday, they will only now be increasing the board from five to nine seats; I don't know where you got twelve. He also said "It’s a priority for us to repay the debt", which doesn't necessarily contradict the claim that "F8 is not yet required to repay 777", but it sure comes close to saying that they're going to be required to repay 777.

Why would Flair feel the need to make all those changes if they're of the opinion that they were actually compliant the whole time? If they've come up with this plan in six weeks, why do they need an exemption for another 18 months?
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Re: CTA launches formal probe into Flair

Post by C-GGGQ »

SPR wrote: Fri Apr 22, 2022 9:29 am
nynybear wrote: Wed Apr 20, 2022 9:16 am 1. F8 currently leases only 5 of their aircraft from 777 Partners.

2. 777 occupies 3 of the 12 available seats on the Board (7 vacant).

3. F8 is not yet required to repay 777.

4. F8 is in fact Canadian owned.

5. 18 month delay request is to shift debt and wait for a more favourable market environment to launch the IPO.

6. Thats why the 'large swath' of Canada's aviation sector (2 companies with their own skeletons) are in opposition to the extension and are fuelling the media and daytime TV watchers who post here.
I've found seven aircraft that are leased from 777 Partners and are currently in operation, which is half of their current fleet, and the percentage will only grow as more are delivered.

https://financialpost.com/transportatio ... 1650579196

According to Stephen Jones, Flair's CEO, as of yesterday, they will only now be increasing the board from five to nine seats; I don't know where you got twelve. He also said "It’s a priority for us to repay the debt", which doesn't necessarily contradict the claim that "F8 is not yet required to repay 777", but it sure comes close to saying that they're going to be required to repay 777.

Why would Flair feel the need to make all those changes if they're of the opinion that they were actually compliant the whole time? If they've come up with this plan in six weeks, why do they need an exemption for another 18 months?
How many aircraft they lease from whom is irrelevant. It’s a red herring. The 18 months they clearly said in the article is to have time to refinance loans so that they don’t owe 777 as much.
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Re: CTA launches formal probe into Flair

Post by fish4life »

Of course their priority is to repay the 777 debt because it’s at 18%, they are paying off their credit card.
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Re: CTA launches formal probe into Flair

Post by co-joe »

goingmissed wrote: Wed Apr 20, 2022 10:45 am
4. Whataboutism. With that said, Onex is headquartered in Toronto with a CEO who was born in Manitoba and lives in Toronto.
Whataboutism would be if I suggested that Westjet broke the law by purchasing customers with Swoop with the sole purpose of driving Flair out of business, which is against the law, so it should be ok for Flair to break the CTA laws. In fact I compared Westjets US ownership and control in force to Flairs alleged US ownership and control in force. A direct comparison not whataboutism at all.
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Re: CTA launches formal probe into Flair

Post by co-joe »

Case number:
20-03714

On December 10, 2019, in Letter Decision No. LET-A-99-2019 (Determination), the Canadian Transportation Agency determined that WestJet and Swoop Inc. will remain Canadian, as defined in subsection 55(1) of the Canada Transportation Act, S.C., 1996, c. 10, as amended (CTA), following the execution of the proposed acquisition of WestJet Airlines Ltd. by an affiliate of Onex. The Agency’s determination was on the condition that Onex amend its by-laws no later than June 1, 2020, to ensure that the quorum rules for any board of directors’ meeting require a majority of directors voting on or signing a written resolution in respect of any matters pertaining to or affecting WestJet Airlines Ltd., WestJet, and Swoop Inc. be Canadian, and provided that, in all other respects, the proposed transaction is executed as filed, in all material respects.

On March 26, 2020, Onex informed the Agency that Onex’s next meeting of shareholders was duly scheduled to take place on May 14, 2020; however, as a direct result of the COVID-19 pandemic, the meeting has been rescheduled and is expected to occur in July 2020.

Onex states that its board of directors approved and adopted a by-law that satisfies the Agency’s condition on December 19, 2019, and that the by-law will remain in effect at all times until the shareholders’ meeting, at which time it will be ratified. Following the shareholders’ meeting, Onex will provide the Agency with notification of the ratification.
CONCLUSION

The Agency is satisfied that the COVID-19 pandemic constitutes a change in the facts or circumstances pertaining to the Determination that has arisen subsequent to its issuance. The Agency, pursuant to section 32 of the CTA, therefore extends the deadline for Onex to comply with the condition until August 30, 2020.
So according to this, Westjet and Onex did not in fact meet the CTA control in force rules and low and behold, THEY WERE GIVEN TIME TO MAKE CHANGES TO THEIR GOVERNANCE TO COMPLY. Wow, Imaging that.

Its almost as if the CTA is there to work with air carriers, not just put them out of business.
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