Flair Airlines faces possible loss of operating licence after regulatory finding over control of company

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A Canadian airline that flies domestically or internationally must be 51-per-cent owned by Canadians, with no single foreign entity owning more than 25 per cent

. Additionally, foreigners cannot exert control over the airline, a situation the CTA calls “control in fact.”

In a statement to the Globe, Stephen Jones, Flair’s chief executive officer, denied the carrier has violated the laws, and said Flair will co-operate with the CTA. “Flair Airlines is a Canadian airline and is controlled by Canadians both in law and in fact,” Mr. Jones said.The CTA defines control in fact as “the power, whether exercised or not, to control the strategic decision-making activities of an enterprise and to manage and run its day-to-day operations.

In January, 2021, while most airlines were trying to survive the collapse in demand for airfares, Flair unveiled an ambitious plan to fly 13 new Boeing 737 Max passenger jets. The planes would be leased from 777 Partners.

 

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