Flair Airlines (F8, Kelowna) has announced that its long-time backer and investor 777 Partners has cut its stake in the business, saying that an unnamed "affiliate of Flair's largest senior lender" had acquired part of 777's shareholding in the carrier while also "providing new non-binding debt funding". It did not disclose the size of the portion that changed hands, but Canada's Globe and Mail newspaper reported that the private investment firm had reduced its stake from approximately 25% to less than 10%.

In a May 1 statement, Flair CEO and President Stephen Jones called the shareholding changes "a strategic evolution," adding that he was "excited" about the change and that “we are grateful for their support as we chart the course for continued growth". 777 Partners had been a major source of financing and aircraft for Flair.

Flair's strategic evolution comes days after another 777 Partners-backed airline, Bonza (Sunshine Coast), abruptly ceased operations and filed for voluntary administration, which offers protection from creditors akin to US Chapter 11 provisions. Some of Bonza's problems were due to 777 diverting aircraft flagged for Bonza to Flair, leaving the Australian operation undersupplied.

Flair Airlines operates two B737-800s and eighteen B737-8s to 34 airports across North and Central America. Jones says the carrier is preparing for its busiest summer on record. 777 Partners bought into Flair in 2018, saying at the time that it would provide up to fifty Boeing narrowbodies and, for a period, retained veto rights on aircraft lease deals.

The Canadian ULCC endured speculation about its future after high-profile aircraft seizures in 2023, controversies at 777 Partners including the investment firm's role in aircraft seizures at airlines it was meant to be backing, and the demise of both Lynx Air (Calgary) and Bonza. This week's share sale signals the end of any significant 777 Partners influence at Flair.

While the other parties to the share transaction remain unclear, it is believed that A-Cap, a US-based insurer that now controls Phoenix Aviation Capital, the leasing company that owns Bonza’s planes, has more than USD500 million in debt exposure to Flair Airlines.