Flair Airlines may or may not be a Canadian budget airline

People like cheap flights, and they have been hard to come by in North America (at least compared to Europe). So, when Flair Airlines opened up in Canada back in the mid-2000s (with subsequent reinventions and rebrandings in 2017 and 2019), there were some muted celebrations. It's a no-frills airline for sure, with additional fees for pretty much everything, but there is a market for that. It is based in Edmonton, and most people think of it (if they think of it at all) as a Canadian budget airline.

But that seem to be in doubt now. In order to fly internal flights within Canada (a "domestic airline"), an airline needs to be Canadian owned. There are rules about these things, and there always has been. Foreign investment in the airline cannot exceed 49%, and a single foreign entity cannot own more than 25%. Additionally, foreigners cannot exert control ("control in fact") over the airline. 

In Flair's case, it is 25% owned by Miami-based 777 Partners (a stake it bought in 2019), which appears to satisfy the rules. But other Canadian airlines have pointed out that 777 Partners also holds a "dominant influence" over the company, by virtue of being a large lender and also a  provider of leased aircraft. Three of Flair's five directors are also connected to 777 Partners.

Now, Transport Canada, the Canadian Transportation Agency (CTA), the National Airlines Council (NAC) and the Air Transport Association of Canada (ATAC) are all getting involved - so many regulatory organizations! - in order to sort it all out. The CTA ruled in its preliminary decision back in March 2022 that there are "strong indicators that Flair is controlled in fact by 777". 

Flair, for its part, has called for an 18-month exemption from the Canadian ownership rules while these issues can be addressed, although some airlines and industry groups like NAC and ATAC are questioning whether even that should be allowed. The company has fired back that the other Canadian airlines are just trying to take it down any way they can, and Close down any legitimate competition. It's all getting quite nasty.

As things stand, in the absence of a temporary exemption, Flair has until May 3rd (i.e. not long) to either make some substantial changes or face the possible loss of its operating license. It will be interesting to see how it all unfolds.