Seizure of Flair airplanes points to stiff competition in aviation
BNN Bloomberg
An aviation expert says the seizure of four Flair Airlines planes over the weekend points to the fierce competition and high demand playing out in the Canadian air travel industry.
Flair says the Boeing 737 Maxes were grounded Saturday after a "commercial dispute" with New York-based Airborne Capital Inc., and that the airline has since begun lease payments that were several days overdue.
John Gradek, head of McGill University's aviation management program, says leasing prices have skyrocketed since the pandemic due to surging travel demand, even as domestic airfares have dropped amid a crop of new carriers.
As a result, the "slightest sneeze" in a payment plan could trigger lease termination, allowing the lessor to find a new client willing to pay more per month for the pricey planes.
