April 14, 2024

CPS

Travel Adventure

Flair Airlines claims financial services firm is withholding $25 million

2 min read

Canadian low-fare carrier Flair Airlines is accusing a financial services company of “wrongful withholding of funds” totalling $25 million.

According to a release, the Alberta-based airline has worked with Peoples Trust, a financial services company, for over a year.

“However, in February, Peoples Trust made an unjustified decision to cease regular transfers and withhold approximately $25 million of Flair funds,” reads the statement. “This action not only impacts Flair Airlines but also raises concerns about the trust Canadians place in the payments system.”

Flair states that the company has “no legitimate reason” for doing so and that it’s “a breach of their fiduciary duties.”

Flair Airlines CEO Stephen Jones said they’ve tried to resolve the issue with the company amicably.

“Their unilateral decision to withhold funds is both unwarranted and unacceptable,” he said.

In an email to Daily Hive, a Flair spokesperson said that Peoples Trust is withholding the $25 million due to a dispute with PSiGate, an electronic payment processing company.

According to the spokesperson, Peoples Trust insists that its actions are “necessary to safeguard their interests in response to the dispute.”

“Despite Flair’s attempts to negotiate, Peoples Trust has consistently changed terms and conditions, prompting Flair to pursue legal action,” the email states.

As a result, Flair has started legal proceedings and filed a Notice of Application to help solve the matter.

So, what does this mean for customers?

According to Flair, they’re now using another payment processing system to avoid disruptions to travellers.

“We want to assure our valued customers that Flair will continue providing reliable, dependable, and affordable travel options,” they stated.

It’s not the only issue Flair has been dealing with regarding finances.

The company recently had an issue processing payroll and said it was because of the company that handles these payments. However, the problem was identified and fixed, and the funds were released to their employees.

“We have notified our employees of the correction and ensure that they can keep providing Canadians with the highest standard of service and support,” they said. “We apologize to our employees for the stress and inconvenience that this has caused.”


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