unaligned

Flair Airlines can continue to fly domestically following a ruling by the Canadian Transportation Agency (CTA), ending months of speculation about the future of the discount carrier. The Edmonton-based airline, which offers cheap fares and no-frills service for flights throughout Canada and to destinations in the United States and Mexico, had been facing the possibility of losing its domestic operating licence over concerns it had violated Canadian foreign-ownership rules. “We’re thrilled to receive the positive decision today from the CTA which reinforces that Flair is a Canadian airline,” CEO Stephen Jones said at a press conference on June 1. “The question has been answered. It’s done.” A preliminary investigation by the CTA in March found evidence the company did not meet the requirements for Canadian ownership of a domestic airline. Under federal law, at least 51% of a domestic airline’s voting shares must be Canadian, and no more than 25% of voting interests can be held by a single non-Canadian company or person. The regulator was concerned about Flair’s partnership with Miami-based 777 Partners LLC, which owns a 25-per cent stake in the airline. The CTA pointed to the American investment firm’s control of the board of directors and suggested it had “control in fact” of Flair since the airline depended on it for financing and the leasing of aircraft. The private equity firm was also believed to be playing an active role in the management of Flair’s business. In its decision, the CTA acknowledged Flair had made changes to limit 777’s influence following the preliminary investigation. Flair overhauled its board to boost the number of Canadian directors and amended its shareholder agreement to strip 777 of some of its unique shareholder rights, according to the CTA. The company also reported that it has been cash self-sufficient since March, and has been working to diversify its funding sources and to refinance the balance of its debt to 777 Partners.<br/>

Belarusian flag-carrier Belavia is having to scrap planned services to Israel, claiming that Israeli authorities have reversed a decision to allow the airline entry to Tel Aviv along a revised route. Belavia says it had received permission to operate from Minsk to Tel Aviv in mid-May and drawn up a schedule which included a technical stop at Baku in Azerbaijan. The first flight was due to take place on 2 June. But Belavia chief Igor Cherginets says the Israeli authorities have made a “sudden decision” to cancel the agreement. While Belarusian and Russian air transport has been subject to various sanctions and restrictive measures imposed over the Ukrainian conflict, Israel has continued to allow a number of Russian operators to serve Tel Aviv, and Israeli flag-carrier El Al still operates to Moscow. Cherginets says the decision against Belavia was “unilateral” and indicates that it stems from a refusal by Israeli aviation authorities to service the carrier’s fleet at Tel Aviv’s Ben Gurion airport. He says the airline had been selling tickets for the service but will instead have to cancel all the planned flights to the end of the summer season in late October. Belavia says it has been operating between Minsk and Tel Aviv for over 25 years, and that the route is popular with leisure passengers.<br/>