Canada's airline industry calls on Ottawa to reject Flair exemption

Members of Canada’s airline industry are asking the federal government to reject Flair Airlines’ request for a temporary exemption of the Canadian ownership requirement. “If granted, this unprecedented request would allow Flair to continue operating outside the bounds of existing Canadian law, setting a troubling precedent while also threatening consumer confidence in the sector, at a time when the travel industry is working hard to provide a strong and sustainable future for air travel for Canadians,” the National Airlines Council of Canada and the Air Transport Association of Canada said in a joint statement. Together the two groups represent Canada’s major airlines — Air Canada, WestJet Airlines, Transat — smaller and freight carriers and aviation industry suppliers. Flair is facing an investigation by the Canadian Transport Agency over whether it meets the requirements for Canadian ownership. Under the Act, at least 51% of a company’s voting interests must be Canadian, and no more than 25% of voting interests may be held by a single non-Canadian company or person. At issue is Miami-based 777 Partners, which has a 25% stake in Flair, leases the airline its planes and has members on its board. The Edmonton-based Flair, which has until May 3 to answer the agency’s preliminary findings or potentially have its licence suspended, has asked for an 18-month exemption to address the issue.<br/>