Flair Airlines files $50M lawsuit against leasing firms over plane seizures | 24CA News
Flair Airlines has filed a $50-million lawsuit in opposition to the leasing corporations that seized 4 of its planes late final week and following a press release from one lessor that the airline had repeatedly missed funds over the course of current months.
The assertion of declare, obtained by Global News, alleges the repossession of the planes was illegal, invalid and non-compliant with the lease’s agreements. It calls for the return of the plane to Flair and for the lessors to proceed leasing them to the airline in accordance with its lease settlement.
Finally, it claims $50 million in damages “for breach of contract, breach of duty of good faith in contractual performance, negligent and/or fraudulent misrepresentation, wrongful seizure, conversion, and conspiracy.”
While Flair claims the seizure of the planes, which precipitated cancelled flights, was not warranted, its lessor, Airborne Capital, mentioned Tuesday that the airline was thousands and thousands behind in funds and the transfer was justified.
In the declare that was filed in Ontario Superior Court, Flair says that after paying thousands and thousands in lease funds, the lessors “found a better deal leasing or selling the aircraft to a third party.”
The lessors — Columba Lights Aviation Ltd., Corvus Lights Aviation Ltd., and MAM Aircraft Leasing 4, all primarily based in Ireland and which Airborne manages — then arrange Flair for a technical default, terminated the leases and seized the plane on a “pretense of relatively insignificant amounts,” the airline alleges. Flair says it made an settlement to pay the lessors in a matter of days, which was agreed to, however at round 3:00 a.m. on Saturday morning, the plane have been seized.
“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 declare 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 then says that one other firm, which it calls ABC Corporation within the submitting, agreed to buy or lease the plane from the lessors. Flair says it doesn’t know the identification of the corporate, however it’s recognized to the lessors.
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