Flair Airlines faces seizure order over $67 million in unpaid taxes
Canadian budget carrier Flair Airlines appears to have landed itself in hot water.
According to court documents, the ultra-low-cost airline owes the federal government $67 million in unpaid taxes, prompting the Canada Revenue Agency (CRA) to obtain an order for the seizure and sale of the carrier's property.
As reported by the Canadian Press, the fees relate to the import duties on the 20 Being 737 Max jetliners that make up the carrier's fleet. According to Flair Airlines CEO, Stephen Jones, the court order obtained by the CRA has no impact on the airline's operations.
"We have a mutually agreed-upon payment plan with CRA to pay these importation duties, and we are current with that plan," Jones said in an emailed statement.
The CRA also said it cannot comment on specific cases due to confidentiality reasons. "As a last resort, we may take additional legal collection actions such as seizing property or assets to protect the interests of the Crown," said spokeswoman Kim Thiffault.
The Edmonton-headquartered airline launched in 2017 and is known for its budget-friendly flights from major Canadian cities to sunny destinations across the U.S., Mexico, Jamaica, and the Dominican Republic.
This isn't the first time the ultra-low-cost carrier has made similar headlines in the past year. Last March, New York-based aircraft lessor Airborne Capital repossessed four of the airline's planes, claiming that the company regularly missed out on rent payments.
Soon after, the airline filed a $50 million lawsuit with the Ontario Superior Court of Justice against Airborne and three other leasing corporations, arguing that the seizure was "unlawful."
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