Flair sues leasing company for seizing aircrafts after the airline missed rent payments

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The lawsuit against Airborne Capital and four other companies filed in Ontario Superior Court of Justice, contains unproven allegations

Flair, in a statement of claim dated March 14, alleges Airborne Capital and four other companies conspired to repossess four Boeing 737 Max aircraft without warning and despite assurances from Flair the overdue payments were coming within days.The lawsuit alleges breach of contract and good faith, and negligent misrepresentation, among other accusations.

Airborne said in a statement on Tuesday it took back the aircraft after a five-month period in which Flair “regularly” defaulted on its lease agreements and fell behind by millions of dollars. “Terminating an aircraft lease is always a last resort, and such a decision is never taken lightly. In this case, following numerous notices to Flair, it again failed to make payments when due and Airborne took steps to terminate the leasing of the aircraft,” Airborne said.

“The defendants’ actions … were malicious, high-handed and showed a reckless disregard for the rights and interests of Flair,” Flair said in its statement of claim.

 

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