Flair Airlines Announces Reduction in Stake by 777 Partners Amid Strategic Changes

Flair Airlines, based in Kelowna, has revealed that 777 Partners, a key investor since 2018, has significantly reduced its stake in the airline. The exact size of the stake reduction was not disclosed, but according to Canada’s Globe and Mail, the private investment firm’s share has decreased from about 25% to under 10%. This shift in shareholding comes as an affiliate of Flair’s largest senior lender acquires part of 777 Partners’ shares, alongside providing new non-binding debt funding to the airline.

Stephen Jones, CEO and President of Flair, described the transition as “a strategic evolution” and expressed enthusiasm about the future. “We are grateful for their support as we chart the course for continued growth,” Jones stated. This development follows the recent troubles at Bonza, another airline backed by 777 Partners, which halted operations and entered voluntary administration.

Flair Airlines, known for its cost-effective travel options, operates a fleet of two B737-800s and eighteen B737-8s, serving 34 destinations across North and Central America. The airline is gearing up for its busiest summer season ever, underlining its ongoing expansion and operational scale-up.

The reduction in 777 Partners’ stake marks a significant shift in Flair’s financial and strategic landscape, particularly following controversies in 2023 that involved high-profile aircraft seizures and the broader challenges faced by 777 Partners in the aviation sector. The stake sale notably diminishes 777 Partners’ influence over Flair, positioning the airline to navigate future growth with a new financial framework.

The details of the parties involved in the new shareholding and funding arrangements remain confidential, but speculation suggests significant involvement by A-Cap, a US-based insurer linked to Phoenix Aviation Capital, which now controls the aircraft formerly owned by the troubled Bonza. A-Cap is reported to have over USD 500 million in debt exposure to Flair Airlines, indicating a deep financial connection to the carrier’s ongoing operations and strategy.