Flair Airlines investor sued by aircraft lessors over missed payments

A Flair Airlines plane is seen in this undated handout photo. THE CANADIAN PRESS/HO, Flair Airlines

Three aircraft lessors have sued a U.S.-based minority investor in Flair Airlines claiming US$30 million after the Canadian budget carrier allegedly missed lease payments for four jets, their filing in a London court showed.

Ireland-based Corvus Lights Aviation, MAM Aircraft Leasing 4 and Columba Lights Aviation filed the suit against 777 Partners and its sister company 600 Partners on Dec. 12, which was made public later.

777 Partners provided guarantees for each of the four leases involving a Boeing 737-800 and three 737 MAX 8 jets, while 600 partners had given it for three leases, the lawsuit said.

The US$30 million claim is the latest round in a dispute over the four jets that were leased to privately owned Flair, but were repossessed in March last year by Airborne Capital, which managed the jets on behalf of the three lessors.

"Despite being repeatedly notified of their financial obligations, 777 Partners continued to ignore calls to settle outstanding payments of almost US$30 million," the three lessors said in a statement.

In response, 777 Partners said, "the English proceedings are likely to be the subject of a stay application given that the position of 777 Partners remains that it is at best premature, and at worst possibly abusing the English Court System."

The investor said it was backing Flair in a separate legal battle with Airborne in a Canadian court. The airline was not named as a defendant in the case filed in London by the three lessors.

"Flair has continued to deliver on its promise to provide Canadians with affordable air fare and has had the best operational performance of any Canadian airline," the airline said.

Aircraft lessors are benefiting from a shortage of jets as airlines, desperate to tap into a travel rebound, have had to wait longer for jets from Boeing and Airbus.

(Reporting by Abhijith Ganapavaram in Bengaluru and Allison Lampert in Montreal; Editing by Arun Koyyur)