Canadian budget carrier reaches leasing deal for two 737 MAX jets after lessor spat

Flair Airlines stated on Wednesday it’s leasing two extra Boeing 737 MAX jets to fulfill rising journey demand, after the Canadian price range provider misplaced entry to 4 planes earlier this 12 months in a dispute with a separate lessor.

Small, privately held Flair is taking the planes by way of a sale-leaseback cope with SMBC Aviation Capital, the world’s second-largest plane lessor, and can start flying this summer time, an organization spokesperson stated.

While Flair claimed it had gotten MAX planes from Boeing Co BA.N at “a great price” in 2021, simply months after they have been returned to service following two crashes, Flair CEO Stephen Jones says MAX costs are again to the place they have been earlier than the 2019 grounding.

Boeing and European rival Airbus SE AIR.PA are ramping up manufacturing of narrowbody jets to fulfill surging journey demand.

“It’s clear that pricing has become very firm again,” Jones stated in an interview.

In May, Ireland’s Ryanair positioned a significant Boeing MAX order after reaching a truce on pricing.

Jones stated the deal exhibits Flair has the arrogance of a giant world leasing firm, after the ultra-low-cost provider had 4 plane seized in March on account of a business dispute with a New-York based mostly hedge fund and plane lessor.

“We were really surprised and upset by the actions taken,” he stated.

Lessor Airborne Capital has stated the plane deal ended following a five-month-long interval throughout which Flair was frequently in default of its leases by failing to fulfill its funds when due, with cost arrears reaching tens of millions of {dollars}.

The matter is now in courtroom. With the 2 additions, Flair will function 21 jets.

Jones stated he expects robust summer time journey in Canada with the variety of seats above 2019 ranges resulting from new entrants.

(Reporting By Allison Lampert in Montreal; enhancing by Jonathan Oatis)