Flair Airlines could be grounded in Canada over foreign control concerns

Flair Airlines' future is up in the air after a federal watchdog found the company might not have enough Canadian control to operate in the country's skies.

Ultra low-cost carrier Flair Airlines could lose its right to operate in Canada over concerns that too much of its operations are controlled by a U.S.-based partner, according to a preliminary review from the country’s transportation watchdog obtained by Global News.

The decision, for which Flair is seeking an exemption, could see the airline’s operating licence suspended on May 3, leaving Canadian air travellers with summer travel plans stranded at the gate.

Some air industry observers are watching the proceedings skeptically, wondering about the lack of transparency around the review, while others say the airline has long been playing too loose with Canadian ownership requirements.

“If you’re buying a ticket for travel beyond May 3rd… buy insurance and make sure you’re ready for some turbulence along the way,” says John Gradek, a professor with McGill University’s aviation management program who’s following the case.

Flair Airlines is based in Edmonton, Alta., but operates routes connecting many smaller markets in Canada to other North American destinations.

Though it technically began operations in 2005, it was in 2018 that Flair formally joined the emerging crop of ultra low-cost carriers (ULCC) in Canada including WestJet’s Swoop and Lynx Air. Flair offers a no-frills travel experience but appeals to consumers with eye-grabbing deals such as $69 flights from Toronto to Vancouver.

Flair currently operates a fleet of 13 Boeing 737 aircraft, but has stated plans to scale up to 50 aircraft by 2025. The airline has even received federal support to do so, having gotten $11 million in grants through the Regional Air Transportation Initiative to help expand its operations.

But despite its long-term ambitions, the Canadian Transportation Agency (CTA) — the federal watchdog that oversees the airline industry — launched a review in late 2021 based on concerns that Flair does not meet Canadian ownership requirements under the Canada Transportation Act.