Flair Airlines is a Canadian ultra-low-cost airline carrier based in Edmonton, Alberta. Its 20 aircraft fleet-based Boeing planes operate both passenger and chartered services to +35 destinations across North America.
Around a decade ago, Flair Airlines underwent a makeover, including a name change. What was the reasoning behind this major rebrand?
In the late teens, Flair was purchased by a private equity company, which aimed to transform a small charter-based airline into Canada’s first independent ultra-low-cost carrier. It’s easier to start on an existing operating certificate than to transition to a new one.
Consequently, Flair rebranded to become more customer-oriented and direct-to-consumer, rather than focusing on charter services. This new version of Flair is dedicated to providing everyday low fares to Canadians. The rebranding was part of a broader strategy to make low-cost air travel accessible, positioning Flair in the competitive airline landscape of Canada.
The competitive landscape for airlines is becoming increasingly challenging for smaller Canadian carriers. Are you concerned Flair Airlines could face a similar fate to other low-cost carriers who have been forced to exit the market?
Last summer, there were three ultra-low-cost carriers in Canada: Flair, Swoop, and Lynx. Now, there are three legacy carriers—Air Canada, WestJet, and Porter—and Flair is the only remaining ultra-low-cost carrier. The competitive environment is intense for such a small country. The main challenge isn’t competition from other airlines but rather the aviation ecosystem within Canada. The regulations, policy, infrastructure, and costs are built around the legacy business models of Air Canada and WestJet, making it difficult to maintain low fares due to high airport fees and taxes.
The primary concern is to offer low fares to customers. Policymakers and airport authorities need to recognize Flair’s role in lowering fares and stimulating the economy. We’ve saved Canadians $700 million and generated billions in economic activity since our inception. Flair’s revenue has significantly improved year over year, with strong bookings for both summer and winter. However, for low-cost air travel to grow, it’s going to require more than just Flair’s efforts. The responsibility to maintain low fares falls on the entire ecosystem, not just Flair.
What kind of policy or regulatory support would you hope to see at a governmental level to support low-cost carriers like Flair?
Canada’s user-pay model for airports is flawed. Unlike the US, where airport assets are seen as public resources with public funding, Canadian airports lease land from the government and must send a portion of revenues back. This makes Canadian airports among the most expensive in the world.
A lack of oversight on airport fees exacerbates this issue. For example, Victoria Airport increased its improvement fee from $15 to $25 overnight. There’s no accountability, and airlines have no choice but to pay these fees, which are then passed on to customers, making air travel less affordable.
Is the issue of high airport fees and the challenges facing low-cost carriers part of the current public consciousness and political discourse in Canada?
When Lynx went out of business, it prompted a competition board review about low-fare air travel. Even WestJet’s CEO, who has experience with European models, has spoken about the high fees in Canada. There’s enough travel demand for all airlines to succeed, but a significant portion of money goes to airports, limiting affordable travel for Canadians.
The problem lies in policies and infrastructure that favor legacy carriers and their business models. Canadian policies often favor international travelers connecting through Canadian airports rather than benefiting Canadians flying within their own country.
Flair has received a significant number of complaints in recent years, far above other Canadian carriers. Why are people unhappy with Flair, and what measures have you taken to improve services?
The number one issue was expectation setting. We used to run a not very on-time, not very responsive airline. We've now revamped our website, have the lowest cancellation rate in Canada, and our on-time performance has improved significantly, but repairing our reputation will take time. We need to communicate better with our customers and ensure they understand we’re committed to providing the lowest fares without compromising on service. This can significantly improve the customer experience.
It’s about building trust and showing that Flair is fighting for affordable travel for everyone. It’s also about translating airline jargon into human speak. It’s not about advanced technology but about making an extra effort to keep customers informed. Understanding and empathizing with the customer’s experience can alleviate a lot of anxiety and improve overall satisfaction.
Given that Flair Airlines’ fleet contains exclusively Boeing aircraft, have you faced any challenges given the recent scandals?
Our fleet consists of 20 Boeing aircraft. The main issue has been delivery timelines, which can affect scheduling. However, in terms of customer perception and safety, we haven’t seen significant issues. Our maintenance team ensures the highest safety standards.
Despite challenges like bird strikes, we’ve implemented measures like new lighting systems to deter them. We’re pleased with the platform we have and see no need to diversify the fleet at this time.
Can you tell us about Flair’s plans to expand its reach of new routes and connections over the coming years?
We see potential in underserved niches, such as routes between Canada and large Mexican cities. For instance, we launched Vancouver to Guadalajara service last month, which has been very successful. We’re also starting service from Guadalajara to Toronto in September.
Connecting these large population centers in Mexico with Canada addresses a growing demand among immigrants and benefits both markets. It’s fulfilling to offer non-stop connections that allow people to visit family and friends more affordably.
