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2mo ago

Irish Lessors File US$30.9M Counterclaim Against Flair Airlines

Leasing firms allege that Flair skipped rent on four Boeing 737s, seeking US$30.9 million in damages for lost income, maintenance and repair costs.

A Flair Airlines Boeing 737 MAX 8 aircraft at Vancouver International Airport on April 17, 2024. The counterclaim for damages by the four Irish leasing companies is made in their statement of defence of an earlier lawsuit launched by Flair.
Plane-leasing companies that seized four aircraft from Flair Airlines in 2023 are seeking US$30.9 million in damages from the budget carrier, alleging it failed to make rent payments by deadline and ignored repeated default notices. Flair Airlines captain Ken Symonds inspects the outside of one of the company's Boeing 737 MAX 8 aircraft while parked at a gate at Vancouver International Airport, in Richmond, B.C., on Wednesday, April 17, 2024. THE CANADIAN PRESS/Darryl Dyck
In March 2023, Flair Airlines filed a $50-million lawsuit against Irish-based Airborne Capital Inc. and a trio of affiliated leasing corporations.

Overview

  • Four Irish leasing companies repossessed four Boeing 737s from Flair Airlines in March 2023 after alleging that Flair failed to make lease payments totaling up to US$3.5 million.
  • Flair initially sued the lessors for US$50 million, arguing the seizures were unlawful and caused operational disruptions.
  • On June 26, the lessors lodged a US$30.9 million counterclaim in Ontario Superior Court, attributing their costs to lost rental income, repairs and related expenses.
  • The lessors assert that their contracts granted them rights to repossess and re-lease the aircraft on default and deny any breach of good faith.
  • Neither Flair’s lawsuit nor the lessors’ counterclaim has been judged on its merits as the dispute remains before the Ontario Superior Court of Justice.