In a ruling released on Wednesday, the B.C. Supreme Court ordered Kelowna Flightcraft to maintain business as usual with Flair Airlines.
Citing it was owed money — $204,750 — Kelowna Flightcraft was seeking to end its contract for dispatch services, effective Oct. 9.
However, Flair Airlines sought a court order prohibiting the contract from being terminated.
Kelowna Flightcraft said it sent a notice to Flair Airlines on June 24 that it would be terminating the dispatch services contract on Oct. 9.
The two companies have been doing business since at least 2005, with the dispatch services contract having been signed on Aug. 17, 2015. The contract did not have a termination date, though it did contain a clause of three months’ written notice.
Flair Airlines said its didn’t receive Kelowna Flightcraft’s notice until July 9, with its senior executives finding out on Aug. 13.
With less than two months from Aug. 13 to Oct. 9, Flair Airlines said not having dispatch services would likely put it out of business within a short period of time.
New Kelowna-based airline offers flights for as low as $50 between the Okanagan and Vancouver
Thus, said Flair Airlines, an immediate court order was sought.
According to the court document, Flair Airlines has approximately 120,000 customers who have purchased tickets for flights, including some 15,000 customers who have pre-purchased tickets for travel within the next week.
It also said approximately 200 to 300 individuals employed by Flair Airlines will be laid off, as it will not be able to meet its payroll.
Justice Paul Walker ultimately sided with Flair Airlines, stating, “Flair Airlines has clearly established it will suffer irreparable harm if the contract is terminated today.”
For more on the ruling, click here.
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