Summary
- Flair Airlines reportedly owes over CAD$67 million in unpaid taxes to the Canada Revenue Agency (CRA), resulting in an order for the seizure and sale of the airline’s property.
- The CRA typically works with corporations to resolve tax issues and will resort to legal actions, equivalent to seizing assets, as a final resort to guard government interests.
- Despite the financial controversy, Flair Airlines’ operations haven’t been affected, and the airline continues to fly its fleet of Boeing 737s.
Flair Airlines reportedly owes the Canada Revenue Agency (CRA) greater than CAD$67 million ($49.8 million) in unpaid tax. The debt stems from import duties on the Canadian ultra-low-cost carrier’s fleet of Boeing 737 aircraft. In response to court documents obtained by The Globe and Mail, the quantity owed by Flair Airlines totals CAD$67,174,123.37 in unpaid taxes, plus penalties, interest, and other fees. The situation has led the CRA to acquire an order for the seizure and sale of the airline’s property.
Even though it cannot disclose specific details of every case for confidentiality reasons, the CRA will typically work to resolve the difficulty with an organization, making arrangements based on their ability to pay. A spokesperson for the organization added that
Photo: Ross Howey Photo | Shutterstock
While the precise terms of any agreement between the CRA and Flair Airlines are unknown, the carrier’s CEO, Stephen Jones, defended its position, saying,
“We’ve a mutually agreed-upon payment plan with CRA to pay these importation duties, and we’re current with that plan.”
No impact on the airline’s operations
The excellent news for Flair Airlines’ passengers is that the airline’s operations haven’t been affected by the news, with the carrier continuing to fly its Boeing 737s. In response to the most recent data from ch-aviation, Flair Airlines’ fleet is currently made up of two Boeing 737-800s and 18 737 MAX 8s, which seat a complete of 186 and 189 passengers, respectively, in an all-economy class configuration.
Photo: Heather Dunbar | Shutterstock
Flair Airlines as we understand it today commenced operations in 2017, and currently operates from a lot of bases across Canada, including Edmonton International Airport (YEG) and Toronto Pearson International Airport (YYZ). After surviving the pandemic and its related challenges, Flair Airlines experienced a successful 2023, carrying a complete of 4.5 million passengers, of which 296,000 were in December alone. Nonetheless, the airline is facing increased competition from a growing variety of Canadian carriers, including WestJet, Lynx Air, Air Transat, and Porter Airlines.
Flair Airlines Saves Canadians $415 Million In 2023
Canada’s low-cost carrier Flair Airlines has been essentially the most reliable airline in Canada in 2023, in addition to the second most punctual.
Flair Airlines’ previous financial controversy
This shouldn’t be the primary time that Flair Airlines has been involved in a controversial financial situation. Just last yr, aircraft lessors Airborne Capital repossessed 4 of the carrier’s aircraft, claiming that Flair Airlines had missed several previous payments.
Photo: Flair Airlines
The grounding of 4 aircraft meant that Flair Airlines needed to cancel several flights at first of the important thing Spring Break travel period in March 2023. In response to the claims, the airline launched a CAD$50 million ($37 million) court case against Airborne Capital.
What do you think that of Flair Airlines’ reported $67.2 million in unpaid taxes? Have you ever flown with the airline? Tell us by commenting below.