Posted Mar 22, 2024, 4:58 PM
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Wildcats Rule!!
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Join Date: Jun 2008
Location: Moncton NB
Posts: 34,639
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Bad news for YSJ???
From the main Canada section:
Quote:
Originally Posted by whatnext
To absolutely nobody's surprise:
Flair Airlines cuts over 600 flights as it faces multimillion-dollar financial woes
ERIC ATKINS TRANSPORTATION REPORTER
PUBLISHED 7 HOURS AGO
FOR SUBSCRIBERS
Flair Airlines has reduced its spring schedule by more than 600 flights, making cost-saving cuts to its domestic network even as it adds holiday routes after the failure of low-cost rival Lynx Air.
Flair eliminated a number of flights departing its major hubs, including Toronto, Ottawa, Calgary and Edmonton, for March, April and May, according to Cirium, an aviation data company. The Edmonton-based no-frills carrier has also added flights to Florida, Mexico, Las Vegas and other resort destinations.
Flair’s discount rival, Lynx Air, ceased flying on Feb. 26 and is under court-granted protection from creditors. The nine-plane airline said it could not pay for its daily operations and will wind up the business or be sold in a court-supervised process under the Companies’ Creditors Arrangement Act.
The recent changes in the discount segment precede what is expected to be a busy summer travel period for Canada’s airlines. The industry has enjoyed healthy demand and higher airfares since COVID-19-related restrictions were lifted.
Flair’s schedule changes come as the airline faces a tax repayment bill worth $67-million, a move by a financial services company to hold back $25-million in customer receipts, in addition to a sharp credit-rating downgrade of Flair’s U.S. shareholder’s reinsurance unit, which is a lender to Flair.
Overall, Flair has slashed its schedule for March, April and May by about 8 per cent, the airline confirmed. Rivals Air Canada, WestJet Airlines and Porter Airlines, meanwhile, have all boosted the number of scheduled flights for the same months by about 6 per cent, according to Cirium....
....A major U.S. investor in Flair, meanwhile, is fielding its own challenges. Flair is 25 per cent owned by 777 Partners LLC, a Miami-based private equity company.
New York-based credit-rating agency AM Best has downgraded 777 Partners’ insurance arm, 777 Re Ltd., twice since November, from “excellent” to “weak.” AM Best cited Bermuda-based 777 Re’s ability to meet its financial and insurance obligations, its “weak” balance sheet and exposure to “illiquid” affiliated private investments.
Those related-party investments include several European soccer teams and Flair Airlines.
777 Partners’ stable of soccer teams includes Genoa CFC, Sevilla Futbol Club, Hertha Berlin, Standard Liege and Vasco da Gama. Its proposed purchase of the Everton Football Club in Britain is awaiting approval from the Premier League.....
https://www.theglobeandmail.com/busi...educe-flights/
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The article doesn't say anything in particular about YSJ (or YYG or YHZ for that matter), but, this carrier continues to circle the drain.............
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Go 'Cats Go
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