Flair Airlines sets plan to pay $67-million in unpaid taxes after court order | Airlines

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Flair Airlines flight 801 arrives in Edmonton on April 23, 2022.Megan Albu/The Globe and Mail

The federal government has obtained a court order that allows it to direct the seizure and sale of Flair Airlines Ltd. property in Alberta to recoup more than $67-million in unpaid taxes.

Flair incurred the taxes from the import of 20 Boeing 737 Max aircraft, and has made arrangements to pay the amount owed, said Ashley Fields, a spokeswoman for Flair.

The ruling issued by the Federal Court of Canada comes less than a year after a leasing company repossessed four of Flair’s aircraft for missed rent payments.

The court documents, dated Nov. 23 and obtained by The Globe and Mail, certify the Edmonton-based discount airline owes the Canada Revenue Agency $67,174,123.37, plus penalties, interest and other fees.

“We have a mutually agreed-upon payment plan with CRA to pay these importation duties, and we are current with that plan,” Ms. Fields said in an e-mail on Saturday.

The court issued the writ of seizure and sale at the request of the government’s assistant director of revenue collections. The order directs the Sheriff of Alberta or other licensed agency to “seize and sell the real property or immovables and the personal property or movables within your jurisdiction of Flair Airlines Ltd.”

Ms. Fields did not comment on whether any Flair property has been seized and sold, but said the airline’s operations are not affected by the court order, and the terms of the repayment agreement are confidential. Eighteen of the aircraft – all 737 Maxes…

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