Review of Flair Airlines underway but CEO says it's 'here to stay'

The CEO of the low-cost carrier Flair Airlines says the airline is here to stay, despite a federal review of whether or not the airline is sufficiently Canadian.

"Flair will continue to fly; Flair Customers can continue to book our everyday low fares with confidence," said Stephen Jones during a virtual news conference Thursday. 

On March 3, the Canadian Transportation Agency (CTA) issued a preliminary ruling that found the airline "may not be controlled in fact by Canadians and may, therefore, not be 'Canadian,' as defined in the Canada Transportation Act."

Flair has until May 3 to respond, though Jones said Thursday that most of the issues in question have been resolved — aside from the outstanding debt the carrier owes to a Miami-based investment firm. Flair Airlines has asked Transport Canada for an 18-month exemption to refinance that debt. 

Jones also emphasized that May 3 is not a "drop dead date" when the airline is required to have all its issues settled. 

In response to questions from CBC about the federal review, a spokesperson for the transportation agency said a panel will determine "next steps" once Flair submits its response. The spokesperson said the panel has no specific timeline to render a decision.

"The Panel will consider all evidence and if it determines at the end of the process that Flair is not Canadian, Flair's licences would be suspended," the CTA spokesperson said. 

In recent months, the Region of Waterloo has repeatedly sung Flair Airlines' praises while moving forward with a major expansion of the Region of Waterloo International Airport (YKF). 

In February 2021, the airline said it had inked a deal to begin flying out of YKF. By October, the region was holding a press conference to announce a $44 million airport expansion — with a lime green Flair Airlines jet in the background.

On Thursday, the region held another event to announce the opening of the airport's new domestic arrivals building, "another step toward the airport managing the increased passenger volumes created by Flair Airlines," according to a news release. 

Asked if Flair Airlines had known of potential regulatory issues when the airport expansion began, Jones said the company became aware of the issues on March 3. 

"We'd been exchanging information with [the CTA] backwards and forwards, but until we got the preliminary determination … we were just still in the process,'" he said. 

Jones also denied that the YKF airport expansion had been made in vain, calling it an "incredibly wise and farsighted investment by the region." 

For its part, the Region of Waterloo continues to stand by Flair and the airport expansion.