Canadian ultra-low-cost carrier Flair Airlines has gained a new key investor.
The airline has sold a 25% stake to Miami-based investment firm 777 Partners to help it compete better in the market.
The stake is the maximum allowed by a foreign entity under government rules.
By disclosing the new backer, Flair Airlines says it will give customers confidence in its ability to operate a viable business.
"We felt that the traveling public just doesn’t realize that we have a large firm behind us. That should give passengers comfort to be booking the flights," said Flair CEO Jim Scott.
777 Partners said it sees an opportunity for an independent low-cost carrier to seriously compete with Canada’s big two airlines.
"We want to create a viable alternative for consumers in the region, who have faced a lack of air transportation choice until now," it said in a statement.
Flair is the first standalone ULCC in Canada and has faced intense competition from WestJet-owned Swoop which it accuses of illegal predatory pricing.
Canada’s Competition Bureau is currently investigating these claims.
Flair says it plans to use some of the investment to upgrade its fleet to larger aircraft.
