Flair alleges breach of contract, fraudulent misrepresentation in $50M lawsuit against leasing companies

Flair Airlines has filed a $50m lawsuit against several plane-leasing companies over the "unlawful" seizure of four of its aircraft last weekend, the latest update to the ongoing drama in Canadian aviation after the budget carrier fell behind in its payments. The filings in Ontario Superior Court state that Airborne Capital Inc. and a trio of affiliated leasing corporations "secretly" found a better deal for the Boeing 737 Maxes with a third party and then "set Flair up" for default, amounting to an illegal termination of leases. "The seizures were orchestrated in a bad faith and malicious manner that inflicted the maximum possible harm on Flair, including by interfering with its passenger relationships and trust," the statement of claim reads. The lessors sent agents to seize the aircraft in the middle of the night as passengers were boarding planes for spring break vacations." Flair said it received no notice, precluding the discount carrier from alerting or rebooking customers. The agents arrived at airports in Toronto, Edmonton and Waterloo, Ont., at 3 a.m. EDT on Saturday to confiscate the registration certificates and technical logs on board — the aviation equivalent of taking the car keys — the company said. None of the allegations in Flair's lawsuit have been tested in court. The suit in the Ontario Superior Court of Justice is the latest blow in a back-and-forth fight between the discount carrier and lessor Airborne Capital, which stated this week that Flair "regularly" missed payments over the past five months, prompting the plane seizures.<br/>