Flair Airlines (F8, Kelowna) is in talks with financial institutions about a recapitalisation of the debt-burdened ultra-low-cost airline, Bloomberg reported.
The carrier is reportedly looking for would-be investors who are willing to take on a "slightly higher-risk investment”, interim chief executive Maciej Wilk said. “In order to give us breathing space and comfort to continue restructuring the company, I think we would be very happy if we received like CAD100 million dollars [USD74.3 million].”
In a statement to ch-aviation, Flair Airlines said it was always open to any new strategic equity partnerships that may fuel growth.
Wilk clarified that the money Flair is seeking is not urgently needed. However, the ULCC owes the Canadian government back taxes and faces rising costs in a post-pandemic environment. Additionally, Airborne Capital repossessed three B737-8s and one B737-800 in early 2023 in a dispute between the lessor and Flair’s former investor (but current lender), 777 Partners.
Two other Canadian carriers, Lynx Air and Canada Jetlines, have applied for creditor protection so far in 2024. Wilk hopes Flair can secure its finances to take advantage of the opportunity of being the “last man standing” in the low-cost segment in Canada (WestJet’s LCC brand Swoop was axed last year).
“The competitive environment has changed dramatically,” he said to Bloomberg. “Now the business case for any investor considering Flair as an investment target is much more compelling.” Meanwhile, Eric Tanner, vice president of revenue management and network planning at the airline, said he had never felt more confident in the business in his three years in the role and that Flair has the full support of current investors and lenders following a profitable summer.
The ch-aviation fleets module shows Flair Airlines’ fleet comprises twenty aircraft, including eighteen B737 MAX (all -8 variants) and two B737-800s. Wilk says he wants to increase the fleet to 24 next year, adding that the current structure is capable of handling up to 35 narrowbodies, including Boeing Next Generation B737s.
