A media report says low-cost Canadian carrier Flair Airlines is in talks to go public through a merger with New Vista Acquisition Corp., a company backed by former Boeing chief executive officer Dennis Muilenberg. The story was originated by anonymous sources "with knowledge of the matter."
Bloomberg reports that New Vista may seek to raise additional financing to support a transaction. Spokespeople for New Vista and Flair declined to comment, and Bloomberg said the deal could still collapse.
New Vista raised US$276 million in a February 2021 initial public offering, saying it planned to find a target in the space, defence and communications sector or the advanced air mobility and logistics industries.
It is unclear how a potential deal would be shaped to ensure Canadian control of the airline. Flair, which received financing from U.S.-based 777 Partners LLC, was forced to overhaul its structure to lessen the influence of the investment firm.
Canada's transport agency ruled in June that Flair meets domestic ownership requirements, allowing it to continue operating flights.
Edmonton-based Flair offers lower-cost flights on domestic routes across Canada and to international destinations including San Francisco, Las Vegas, New York and Cancun, Mexico. It has ambitious growth plans, aiming to serve over 35 cities in Canada, the US and Mexico.
Muilenburg left his post as Boeing's CEO in late 2019 following criticism of the aircraft manufacturer's response to two deadly 737 Max accidents.
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