Flair Airlines avoids Canadian ban on foreign ownership concerns

Canada’s transport regulator has ruled that low-cost carrier Flair Airlines Ltd. is “Canadian” enough to continue operating flights in the country. 

The discount airline has made changes to its structure and now “meets the incorporation and voting interest requirements” required by law, the Canadian Transportation Agency said in its final determination, announced Wednesday in a news release. 

The regulator said in March in its preliminary determination that Flair may not be controlled by Canadians and may not be “Canadian” as defined in the Canada Transportation Act. Under that law, at least 51% of a company’s voting interests must be owned and controlled by Canadians, and no more than 25% of the voting interests can be owned directly or indirectly by one or more non-Canadians. 

The Edmonton-based carrier had insisted that it’s a “Canadian airline that will be here for years to come,” and had said that it overhauled its structure to lessen the influence of Miami-based private investment firm 777 Partners LLC, whom it turned to for its debt refinancing.

Launched in 2017, the budget carrier operates dozens of domestic routes in Canada as well as international services to US and Mexican destinations, including New York, San Francisco and Cancun.