The Federal Court of Canada has issued an order permitting the Canadian government to seize land in Alberta owned by Flair Airlines (F8, Kelowna) to cover over CAD67 million Canadian dollars (USD49.8 million) in unpaid taxes, according to the Globe and Mail outlet.

The report says Canada's Revenue Agency obtained the order on November 23, 2023, to cover the CAD67,174,123.37 owed, plus penalties, interest and other fees. The order allows the Alberta Sherrif's Department to "seize and sell the real property or immovables and the personal property or movables within your jurisdiction of Flair Airlines Ltd."

Earlier this month, ch-aviation reported that the Canadian Transportation Agency (CTA) had begun investigating whether Flair Airlines complies with effective control and ownership rules after uncertainties emerged over the extent to which minority shareholder 777 Partners exercises control over the carrier. The Miami-based 777 Partners is Flair's primary provider of leased aircraft and financing.

A Flair spokesperson told the newspaper that the airline had agreed to an instalment plan with the taxation agency to pay the "importation duties," and those payments were up to date. The spokesperson said the agreement terms were confidential, but the court order had not affected the carrier's operations.

Flair operates a fleet of eighteen B737-8s and two B737-800s to 36 destinations in four countries, including Canada, the United States, Dominican Republic, and Mexico. The Canadian Revenue Agency declined to discuss the case's specifics but said it preferred to come to a repayment agreement and only exercised seizure orders as a last resort.