Quote:
Originally Posted by cmyden
Just a summary of the rumors currently circulating around Flair...
- Their website hasn't been accepting any new bookings since Friday afternoon.
- The rumor is that their payment processor (People's Trust) broke ties with them and Flair is looking for a new payment processor.
(The mainstream media has been reporting this as 'IT issues')
- This afternoon Flair started directing traffic from their own website to third party sites for booking (Expedia, CheapoAir), a highly unprecendented thing for an airline to do.
- Some are calling this the straw that breaks the camel's back for Flair. Others point out that Flair seemingly goes through a backbreaking event every quarter and somehow finds a way to survive.
- 777 Partners, the hedge fund that has a 25% ownership stake in Flair, are currently involved with trying to acquire Everton in the Premier League (they've reportedly been selling assets to raise the money to do so). 777's CFO resigned last month.
AM Best recently downgraded 777's credit rating to C- (In November they were downgraded from A- to B)
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Wild. Interesting that People's Trust wasn't willing to keep accepting cards for them and keep the cash until flights are delivered. Although maybe they did that and that's why Flair stopped using them.
Also - AM Best ratings are for insurance companies not hedge funds. I'm not familiar with 777, maybe they have an insurance subsidiary or something? Because AM Best doesn't rate hedge funds.