Kelowna Flightcraft will continue to provide shipping services for Flair Airlines for the time being, despite attempting to end that relationship, according to online court documents.
In a ruling released on Wednesday, the British Columbia Supreme Court ordered Kelowna Flightcraft to continue doing business with Flair Airlines as usual.
Citing the money owed – $ 204,750 – Kelowna Flightcraft attempted to terminate its shipping service contract effective October 9th.
However, Flair Airlines requested a court order prohibiting termination of the contract.
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Kelowna Flightcraft informed Flair Airlines on June 24th that the shipping contract would be terminated on October 9th.
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The two companies have been in business since at least 2005. The contract for the shipping service was signed on August 17, 2015. The contract did not have a cancellation date, although it contained a written clause with three months’ notice.
Flair Airlines announced that Kelowna Flightcraft was not notified until July 9th. The executives found out about this on August 13th.
With less than two months from Aug 13 to Oct 9, Flair Airlines said a lack of shipping would likely result in the company being out of business in a short amount of time.
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According to Flair Airlines, an immediate court order was requested.
According to the court document, Flair Airlines has approximately 120,000 customers who have purchased tickets for flights, including around 15,000 customers who have pre-purchased tickets for travel within the next week.
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It is also said that around 200-300 Flair Airlines employees will be laid off as it will not be able to meet its payroll.
Justice Paul Walker ultimately joined Flair Airlines, stating, “Flair Airlines has clearly stated that if the contract is terminated today it will suffer irreparable damage.”
Further information on the judgment can be found here.
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