Outgoing Flair CEO warns Ottawa

Former boss says discount carrier is key to keep costs down in rivalry with Air Canada, WestJet

- JOSH RUBIN

As he walks out the door this week after retiring as Flair Airlines CEO, Stephen Jones has a plea for the Canadian government: Keep an eye on the big guys.

In an already-tough industry, says Jones — especially in a high-cost country like Canada — the last thing fledgling airlines need is “entrenched” competitors pulling the rug out from underneath them.

“The two big incumbents are very entrenched,” said Jones, referring to Air Canada and WestJet. “They’re entrenched as brands, they’re entrenched in airport positions, they’re entrenched in dealing with government. So they’re a force that you have to be able to come in and make your way through. It’s tough doing that as well.”

Jones, who took over as Flair CEO in 2020, has his last day with the ultra low-cost carrier on Friday.

In a theme he has also hit in appearances before parliamentary committees in Ottawa, Jones said Flair’s presence has benefited all Canadian air passengers — not just the ones who fly the discount carrier.

“Everyone benefits from Flair’s prices, because we force the competitors to bring their prices down. If we weren’t in the market, prices would be a lot higher across the board,” Jones said.

While legitimate competition is fine, sometimes it comes a little close to the line, said Jones, pointing to WestJet’s creation of its own discount carrier, Swoop, which it subsequently reabsorbed.