'Extreme and unusual': Why did Flair have 4 of its planes seized this weekend?

In a move described by Flair as "extreme and unusual," a New York-based hedge fund seized four of the airline's planes over the weekend, resulting in a number of cancelled flights.

The low-cost airline said it would work to rebook customers or reimburse them, but the cancellations left as many as 1,300 passengers stranded and frustrated, especially those travelling for March break.

Here's what we know about the flight disruptions.

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WHAT HAPPENED?

Flair announced in a series of tweets Saturday night that it experienced "service disruptions" at airports in Toronto, Edmonton and Waterloo, Ont.

The seizures involved two aircraft in Toronto and one each in Edmonton and Waterloo.

"We are very sorry to our passengers who were impacted. We know unforeseen interruptions to travel are stressful, and we are doing everything we can to get our customers to their destinations as soon as possible," the tweets read in part.

A statement from the airline described the issue as a "commercial dispute," with company spokesperson Mike Arnot confirming that Flair leased its planes from a company called Airborne Capital.

Citing a person familiar with the matter, The Canadian Press reported that payments for the affected planes were a few days behind, with the amount owed being relatively small.

"Roughly a million dollars in slightly overdue lease payments," Flair CEO Stephen Jones said, as reported by CTV News Atlantic. "We really want to find a conceptual solution with the lessor on this because we think that the dispute is minor and the actions were unwarranted."

Jones also said he was aware of just under 1,300 passengers who had their plans disrupted.

Meanwhile, the company said it is involved in "ongoing communications" with the leasing company and "payment has been initiated."

"Flair Airlines will continue to engage in a consensual mediation with the lessor to remedy the situation," the airline said.

WHAT IS FLAIR DOING?

The airline said it has three spare aircraft to backfill the cancelled flights and that it did not expect any major disruptions to its route map.

The company said Saturday night on Twitter that affected customers could rebook their flights with Flair or another airline, with the help of a dedicated team, at no additional cost.

Customers could also rebook their own travel and receive a reimbursement from Flair within seven days.

"We sincerely apologize for this disruption, especially during a busy travel weekend, and we thank our customers for their patience," the airline said.

"Our team is dedicated to rebooking all affected customers. We guarantee we will work to get you to your destination as soon as we can."

HOW HAVE PASSENGERS REACTED?

Air travellers have shared their stories with CTV News, detailing the effect that the flight disruptions have had on their travels or those of their family members.

Some said that Flair initially told them their flights were cancelled due to "unanticipated maintenance delays within (the) airline's control, but required for safety."

A plane could be seen sitting on the tarmac, with covers over its turbines, at Region of Waterloo International Airport after several flights involving Flair were cancelled.

"The arriving and departing flights changed to cancel at the exact same time," said Andrea Thompson, who booked a flight with Flair in December for a trip from Halifax to Toronto with her daughter.

She ended up buying plane tickets to Ottawa and a train ride from there to Toronto, spending an additional $600.

"I've now lost a whole entire day of our vacation, and we're only here until Tuesday morning. So I'm really angry. I'm tired," she said.

WHAT DOES THIS MEAN FOR FLAIR?

Flair, which launched in 2004 as a charter airline and began offering regularly scheduled service in 2018, has made a number of recent announcements on service and fleet expansions as it aims to be Canada's third-largest domestic airline.

John Gradeck, a lecturer at McGill University's school of aviation management, told CTV's Your Morning on Monday that the seizure of Flair's planes comes at a very inopportune time.

"This is like your mortgage being picked up by your bank and basically they change the lock on the front door," he said.

Gradeck said there are questions as to why Flair had three spare aircraft that weren't already flying.

"These airplanes are hundred million dollar airplanes each, so unless you have a lot of cash in your pocket, which most of these carriers don't have, their easiest way to get these aircraft operating is leases," he said.

Gradeck described the situation as a "black eye" for Flair but hoped it wouldn't be a sign of further trouble, given the need for such low-cost carriers.

"It gives you a bad look in the court of public opinion where you're cancelling flights, you're delaying passengers, it's not a good look," said Phyl Durdey, CEO of Flightline Training Services in Brampton, Ont.

Flair had previously been involved in a longstanding issue over foreign ownership.

In June 2022, the Canadian Transportation Agency ruled that Flair was Canadian and could keep its licence after the airline rejigged the composition of its board to ensure at least half the directors are Canadians. Flair also ended any unique shareholder rights by a Miami-based investor, which it owes a large debt.

With files from CTVNewsAtlantic.ca Video Journalist Hafsa Arif, CTVNewsKitchener.ca Digital Content Producer Daniel Caudle, CTV News Kitchener Videographer Colton Wiens and The Canadian Press

Today, we experienced some service disruptions at YEG, YYZ & YKF. We are very sorry to our passengers who were impacted. We know unforeseen interruptions to travel are stressful, and we are doing everything we can to get our customers to their destinations as soon as possible 1/4

— flair airlines (@FlairAirlines) March 12, 2023