Despite the “doom and gloom” headlines in the consumer media, Flair Airlines CEO Stephen Jones says Canadians “can absolutely, confidently book” with the ultra-low-cost carrier.
In a virtual press conference late last week, Jones tried to shift the narrative after recent reports that it owes the federal government $67.2 million in unpaid import duties on aircraft, prompting the Canada Revenue Agency to obtain an order for the seizure and sale of the carrier's property. The CRA has indicated that this would only occur as a last resort, but that wasn’t reflected in many headlines.
Jones says the stories have created “unwarranted concern” among potential customers.
Stephen Jones, CEO Flair Airlines. (Photo Credit: Flair)
“The media has a responsibility to think about that impact,” Jones said. “The headlines go straight to doom and gloom. I think (the media) has a responsibility to tell the real story. We have had an arrangement in place with the CRA for a few months, and are meeting those obligations. (A property seizure) was never going to happen.”
With the number of airline failures in Canada over the past three decades, it’s no surprise that people worry about the financial health of carriers when they make their bookings. But it’s also clear that Flair is making significant progress in a notoriously difficult market.
In 2023, Flair carried 4.5 million passengers, 1.5 million more than in 2022. Jones says the airline’s completion rate of 98.2% of flights leads the Canadian industry, while its on-time percentage of 68.8% ranks second. Flair also filled an impressive 86% of the seats it offered for sale.
Flair says it is driving down airfares, allowing more Canadians to fly more often. “We have continuously kept prices low across the board,” said Jones, showing slides that compared airfares between Canadian competitors on key routes, with Flair fares ranging from 36% to 52% less.
Flair Airlines Logo (Photo Credit: Flair Airlines Logo)
Jones says “the Flair effect” of lower airfares saved Canadians more than $400 million in 2023, and more than $700 million since 2021. He asserts that Flair’s low fares are changing the way Canadians fly.
“It’s not something you have to save up for. People can fly much more spontaneously,” Jones said, pointing to a statistic that 27% of Canadians plan to take three or more vacations in 2024.”
Financial realities and aircraft manufacturer delivery delays will slow Flair’s projected growth in 2024. Other obstacles for Flair and other low-cost alternatives in Canada include high fees at major airports like YYZ and YVR, as well as slot constraints and runway movement restrictions that make it difficult to launch new routes.
“We will continue to grow despite that,” Jones vowed.
The Flair CEO also vowed to keep a tight focus on cost control, so it can continue to offer low fares.
“The key to low fares is low costs. We will continue to say no to distractions that raise costs. Our model is simple but efficient. If you just want A to B, you’re going to get a low fare. You can add bags, priority boarding and seat choice for a fee, but you don’t have to. The secret is executing well and not being distracted.”
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