‘A tough industry’: Flair CEO puts expansion plans on hold amid debt, delivery delays

Flair CEO Stephen Jones says he's effectively suspending the budget airline's expansion plans for at least a year as it contends with plane delivery delays and hefty debts. "This will be a more muted year," he said in an interview, "but we’ll look to get back into growth mode strongly in 2025.” As recently as the fall, the Edmonton-based company aimed to boost its fleet to 26 Boeing 737 Max jetliners in 2024, up from its current roster of 20. On Monday, Jones said the fleet likely won't grow much in the coming year, due partly to hold-ups at Boeing Co. The US plane-making giant has faced scrutiny from regulators over its safety record, most recently after a midflight blowout of a side panel earlier this month that grounded 737 Max 9 jetliners for weeks. Jones said the Max program has had a number of delays on delivery. Aircraft that were slated to arrive in the spring won't be landing at Flair's gates until late fall, "which is not a great time for capacity growth." This is a tough industry," he said. "The development of the financial performance will take some time." Flair Airlines owes the federal government $67.2m in unpaid taxes, court documents show, prompting the Canada Revenue Agency to obtain an order for the seizure and sale of the carrier's property. The sum relates to unpaid import duties on the 20 Boeing jets that make up Flair's fleet, Jones said. However, he said the Federal Court order obtained by the tax agency in November has no impact on the carrier's operations, which have expanded over the past year and ratcheted up competition with rival airlines. The company has agreed to settle the debt with the CRA, he said.<br/>