The Canadian Transportation Agency (CTA) determined the Edmonton\u002Dbased discount carrier is sufficiently Canadian. Read more here.
Flair, which offers cheap fares and no-frills service for flights throughout Canada and to destinations in the United States and Mexico, had been facing the possibility of losing its domestic operating licence over concerns it had violated Canadian foreign-ownership rules.in March found evidence the company did not meet the requirements for Canadian ownership of a domestic airline.
The regulator was concerned over Flair’s partnership with Miami-based 777 Partners LLC, which owns a 25 per cent stake in the airline. The CTA pointed to the U.S. investment firm’s control of the board of directors and suggested it had “control in fact” of Flair since the airline depend on it for financing and the leasing of aircraft. The private equity firm was also believed to be playing an active role in the management of Flair’s business.
Flair had requested a temporary exemption from the ownership rules in order to take steps to address the CTA’s concerns. The company promised to overhaul its board of directors, and said it would refinance the balance of the company’s reportedly sizeable debt to 777 Partners. In the decision released Wednesday morning, the CTA said it was satisfied with the steps taken by Flair to address the concerns.
“The , after considering all of the facts together finds that 777 is not in a position to exercise control in fact over Flair,” the ruling said. “Moreover, with the changes to the corporate governance structure, Flair is controlled in fact by Canadians… the Agency finds that Flair is Canadian.”Advertisement 4
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