Flair Airlines (F8, Kelowna) has announced it has sold 25% of its shareholding to Miami-based investment firm 777 Partners for an undisclosed sum. The terms of the deal were not disclosed.
“The financial strength of 777 Partners ensures that Flair is in a stronger position to compete and continue on our strong trajectory for domestic growth while meeting the clear demand for ULCC airline options in Canada,” Jim Scott, CEO of Flair Airlines, said in a statement. “This significant investment comes at an exciting time for Flair. Building on the almost one million passengers we have carried in the last 12 months, Flair is leveraging 777’s expertise in the aviation sector to continue scaling our operations, as evidenced by plans to introduce four new airplanes to our fleet this year.”
Flair Airlines is one of Canada's three existing LCC with the others being Air Canada rouge and WestJet's Swoop. It currently operates seven B737-400s and one B737-800 on scheduled flights throughout Canada as well as to the United States.
Last year, the Canadian government agreed to increase foreign ownership caps on local carriers from 25% to 49% (although no single foreign entity may hold more than a 25% stake). Since then, virtually all of Canada's Tier I carriers have signalled their intention to open up their respective shareholdings to foreign investment.
Thus far, nascent ULCC Canada Jetlines has taken onboard investment from Latvian ACMI/charter specialist SmartLynx Airlines and has also signed a Letter of Intent (LOI) with a Korean special purpose fund, led and established by InHarv Partners Ltd., for financing of up to CAD14 million Canadian dollars (USD10.5 million).
Enerjet has partnered US low-cost carrier specialist Indigo Partners as it aims to relaunch as an ultra-low-cost-carrier by year-end.
