Thursday, April 14, 2022

Former Alberta justice minister apologizes for 'misunderstanding' from letter disrupting wrongful dismissal trial


The justice presiding over a wrongful dismissal lawsuit brought by Alberta’s former chief medical examiner wrestled with the trial’s future Monday, after a letter from the province’s former justice minister threw a wrench in proceedings.


© Provided by Edmonton Journal
Dr. Anny Sauvageau, former chief medical examiner, at a 2014 roundtable debate on Alberta's child death review system for kids in provincial care. Sauvageau later sued the province after her contract was not renewed, alleging the Office of the Chief Medical Examiner had been exposed to political interference.


Madeline Smith - Monday
EDMON JOURNAL

Dr. Anny Sauvageau’s testimony abruptly stopped Friday when her lawyer Allan Garber said he’d received a letter from a lawyer for Jonathan Denis, referencing an Edmonton Journal/Sun article detailing her testimony in court, and threatening to sue her for defamation.

Part of the letter from lawyer Kyle Shewchuk reads, “We have been watching Dr. Sauvageau’s current trial and are aware that … Dr. Sauvageau’s defamation of Mr. Denis has continued unabated.”

'Please the minister': Former Alberta medical examiner tells court about tense, tearful meeting

The letter also points to a 2016 report by the Alberta public interest commissioner, which Shewchuk said deemed Sauvageau’s complaints of political interference to be “without merit.”

This week, Garber said he had serious questions about why the letter was sent, considering statements in judicial proceedings are shielded from defamation suits.

“The most chilling thing, m’lady, is that I was told in this letter to advise my client to, quote, ‘govern herself accordingly,’ ” Garber told Justice Doreen Sulyma.

“That statement, m’lady is, to be quite honest and frank, disturbing. Was I to tell her to be careful about what she said in this trial?”

Garber added another witness he intends to call now no longer wants to testify because of the episode.

Sauvageau, who served as Alberta’s chief medical examiner from 2011 to 2014, is suing the provincial government for $7.5 million, claiming the province declined to renew her contract because she fought political interference in her office. Last week, Sauvageau testified that an assistant deputy minister in the ministry of justice told her that her office was not independent of government and that Sauvageau’s job was to make the minister “look good.”

Denis was justice minister under the former Progressive Conservative government. He was previously named as a defendant in the lawsuit, but the action against him was discontinued, and the Alberta government is currently the only defendant.

Sauvageau’s allegations have not been proven in court.

Lawyer Brendan Miller represented Denis in court Monday. He submitted that the letter’s intent was not to target Sauvageau’s testimony. Instead, he said there were concerns that she was making statements to the media outside court.

In an affidavit, Sauvageau denies speaking directly to media. She also said the letter has made her feel “bullied and intimidated,” and fearful to continue with the trial. She still hasn’t finished giving testimony, and it will be followed by cross-examination.

Miller acknowledged the letter had “bad timing” for the trial, but argued it was being misinterpreted.

“It has always been Mr. Denis’s intent simply to protect himself from things said outside this court. It was never intended to try to limit testimony before this court,” he said.

But Sulyma expressed concern about what she called “troubling language” in the letter, and questioned why, if the issue was perceived contact with the media, that isn’t specified.

Adding that the letter’s timing is “disastrous, almost,” she said she wants to assure both parties in the lawsuit that the trial can continue fairly, short of a mistrial.

The trial is now scheduled to continue Wednesday morning, but first, Sulyma will make a decision on whether to cite Denis for contempt of court.

Miller said Denis “wishes to apologize to the court for the situation and assumes full responsibility for the misunderstanding arising from the letter.”

Shewchuk, who sent the letter on Denis’s behalf, also apologized, saying it has been a “learning experience” as a new lawyer.

— With files from Jonny Wakefield

 
Children play an important role in COVID transmission, according to new research

Elizabeth Payne - Yesterday 
Ottawa Citizen

© Provided by Ottawa Citizen
 A pupil has his temperature checked at school.

Children are a significant source of COVID-19 spread in households, according to a new study by Ottawa researchers, which counters an earlier perception that kids play a limited role in the transmission of the virus.

Researchers from the CHEO Research Institute, the Ottawa Hospital Research Institute and the University of Ottawa, found that, while children transmitted COVID-19 at a lower rate than adults, they still contributed to significant spread within the Ottawa households being studied, infecting 37 per cent of household members if they were the first infected. Overall, about 50 per cent of household members were infected by the first individual to have the virus. Children were also as likely as adults to become infected.

The study was conducted on households with COVID-19 infections between September 2020 and March 2021. Its authors hypothesized that children would act as “an even greater source of spread within households with the emergence of more infectious variants,” such as the BA.2 subvariant of Omicron, which now dominates in Ottawa.

The research findings come as the province appears to be reconsidering whether masks should be mandatory in Ontario schools, according to comments made by Health Minister Christine Elliott on Tuesday.

Calls for the province to do so are growing as the sixth wave of the pandemic surges to heights not seen before in the pandemic.


COVID-19 in Ottawa’s wastewater — considered one of the best ways to determine the amount of infection in the community — is now at historic levels, three times as high as at the peak of the Omicron wave in January, according to Tyson Graber, co-lead investigator of the COVID-19 wastewater project in Ottawa and associate scientist at the CHEO Research Institute. According to wastewater data, the wave hasn’t peaked, he said.

On Tuesday, trustees at the Ottawa Carleton District School Board and two other Ontario boards were to debate bringing mandatory masking back to their schools. Most pandemic regulations were dropped by the provincial government last month.

Earlier in the day, Elliott said in response to a question that Chief Medical Officer of Health Dr. Kieran Moore is “reviewing data to determine whether masking should be reintroduced in public settings, in schools and so on.” Her comments seemed to contradict what Moore himself said on Monday during his first appearance in weeks — that he strongly recommended wearing masks in indoor spaces but did not support re-imposing mask mandates at this time.

Still, Elliott called the school board votes premature, saying: “I would ask people to wait until we have heard from Dr. Moore on this subject.”

The study published in the journal CMAJ Open adds to the growing understanding of how the SARS-CoV-2 virus that causes COVID-19 spreads, particularly when children are involved.

Dr. Maala Bhatt, a lead author of the study, said it is important for people to understand how the virus can transmit in closed indoor settings, including schools, and to protect themselves.

“I know many want to ‘live with COVID’ and abandon the layers of protection that were previously mandated, but it’s important to be aware of the high transmissibility of this virus in closed, indoor settings, such as schools,” she said.


© HandoutDr. Maala Bhatt.

Bhatt, an emergency physician at CHEO, is director of emergency medicine research at the hospital and an investigator with the CHEO Research Institute.

Ontario’s COVID-19 Science Advisory Table has also noted that children play a bigger role in the spread of SARS-CoV-2 than originally suspected.

Children were initially underrepresented in case counts because they are less likely than adults to display symptoms. Since the beginning of the Omicron wave in December, though, hospitals have seen more sick children with COVID-19 than at any time during the pandemic. The majority of COVID-19 hospitalizations at CHEO have happened since Dec. 1, 2021.

The research team, including Dr. Marc-Andre Langlois of uOttawa, the executive director of CoVarr-Net, studied 695 participants from 180 households in Ottawa. It included households with at least one member having had confirmed COVID-19 and at least one child.

Bhatt noted that the research was done during a period of the pandemic when the virus was less transmissible and strong pandemic restrictions were in place.

“Flash forward to where we are today with an extremely transmissible variant of COVID-19 and the majority of pandemic restrictions lifted; it’s safe to say transmission rates will be higher even though we have a high vaccination rate amongst those who are eligible,” she said.

Bhatt said that while hospitals are not overloaded as they were in January, emergency departments are, and positivity rates are on the rise, even among children. She and other researchers are continuing to learn more about the potential long-term health impacts of COVID-19 and how long immunity lasts.

She, like many health leaders, said it is important for people to continue to protect themselves and their families.

“As significant COVID-19 transmission continues within households and throughout the community, it’s important to continue doing what you can to keep yourself and those around you safe — mask while indoors, wash your hands, get vaccinated with all the doses you are eligible for, stay home if you’re sick and limit close contacts.”


Two more Ontario boards to revive debate over masking at schools
Jacquie Miller - 
Ottawa Citizen

© Provided by Ottawa Citizen
Mask mandates in schools were dropped by Ontario as of March 21.

With the Ottawa-Carleton District School Board considering whether to reimpose masking at schools, trustees at two other Ontario boards say they plan to bring the same debate to their boards.

Trustee Alex Johnstone at the Hamilton-Wentworth District School Board and Andrea Grebenc at the Halton District School Board have announced they have given notice of motions to be debated by their boards asking for masks to be reintroduced.

The Hamilton-Wentworth board has already defied the province once by temporarily re-imposing masking after the March break.

The province dropped the requirement to wear a mask at most public indoor places, including schools, on March 21.

Ontario Chief Medical Officer of Health Dr. Kieran Moore said Monday that he strongly recommended wearing masks indoors, but did not support reimposing mask mandates at schools. On Tuesday, Health Minister Christine Elliott suggested masking at schools could be back on the table.

In the meantime, the issue is bumped down to local public health officers or school boards, with questions over whether they are able or willing to impose mask mandates.

Ottawa Medical Officer of Health Dr. Vera Etches said in an interview she would support any school board bringing in its own mask rules. Ottawa Public Health has said it would be difficult for Etches to use her powers under Ontario’s Health Protection and Promotion Act to impose masking at schools if the province didn’t support the idea.

The Ottawa-Carleton District School Board planned a special meeting Tuesday night to debate a motion from trustee Mark Fisher to bring back masks.


Two more Ontario boards to revive debate over masking at schools

The board defeated a motion on March 14 to extend masking for a few weeks after March break.


Fisher said the COVID-19 situation had worsened in Ottawa since then and noted that Public Health Ontario just released a report saying a return of masking in schools would reduce spread of the virus.

When Moore announced on March 9 the end of mask mandates in most public spaces on March 21, he said the Omicron wave was behind us and the province’s cautious reopening plan could continue.

The education ministry announced plans for a return to a more normal routine in schools on March 21, including an end to masking, cohorting and physical distancing.

The province is now in a sixth pandemic wave dominated by the more contagious Omicron sub-variant BA.2. Key public-health indicators are rising, and the wave could last another six to eight weeks, Moore said Monday.

In Ottawa, the viral levels in wastewater, a key indicator of the spread of COVID-19, are at record levels.

On Monday, Moore repeated his message that Ontario residents must learn to live with the virus.

He said he was confident the health system could cope with an increase in hospitalizations and Ontario had the tools to manage the virus, including vaccination and the arrival of anti-viral drugs.

There is also more population immunity due to the large numbers of people in Ontario who have been infected with COVID-19 since December: an estimated 5.3 million to 6 million, Moore said.

When asked about rising numbers of children in hospital, Moore said that must be put in perspective.

“To date, there’s been no significant rise in the risk of children in the intensive care unit. So, of all of Ontario, 2.75 million children, there’s two in the intensive care unit right now. On average, we are having 30 to 60 children admitted to hospital. Some of those are incidental admission to hospital, as well, over a one-week period. So we’ve not seen any significant threat to the health of children.”

Critics point out other consequences of more spread of COVID-19 among children, including transmitting the virus to more vulnerable people, developing long COVID or other complications and missing school.

Treating COVID-19 in children as similar to a respiratory virus is a mistake, University of Toronto professor and epidemiologist Colin Furness says. “It’s a vascular and neurotropic disease that causes microclotting and brain tissue loss, plus debilitating long-term effects for some,” he posted. “Really avoid this; if you did get it, REALLY avoid getting it again.”





'A huge rift': COVID-19 response strains relationships in northern Alberta county

Mackenzie County is part of the High Level LGA, the least
vaccinated region in Alberta

THIS IS A MENNONITE COMMUNITY, WHICH THE ARTICLE FAILS TO MENTION
Public health measures to try to curb the spread of COVID-19 have sown a stark divide in Mackenzie County, the least vaccinated region in Alberta. (Jason Franson/The Canadian Press

The mayor of High Level, a town in Alberta's far northwest corner, says she has not spoken to the county government for several weeks.

"We're not at each other's throats, but it's a very estranged relationship," say Crystal McAteer.

"There is a fracture between us. We already had problems, but it's come to the forefront in the last two years."

Public health measures to try to curb the spread of COVID-19 have sown a stark divide in Mackenzie County, the least vaccinated region in Alberta.

Residents and local leaders say friendships have ended, arguments have erupted in shops, and government projects have been unable to move forward amid disagreements over masking, vaccines and other pandemic responses.

"It's like the Hatfields and McCoys," High Level real estate agent Sylvia Kennedy says in a nod to the famous feuding families of 19th-century American lore.

Real estate agent Sylvia Kennedy compared the friction in the county to the Hatfields and McCoys, the famous feuding families of 19th-century American lore. (Jason Franson/The Canadian Press)

"I've been accosted about my wearing a mask. It's really sad ... This silliness is [creating] a huge rift in our region."

Mackenzie County is larger than New Brunswick and has abundant oil, gas and agriculture. In addition to High Level, it is home to the hamlets of La Crete and Fort Vermilion as well as to four First Nations.

The Alberta government says just under one-third of the county's residents are fully vaccinated and about 38 per cent have had their first dose.

The province could not provide a breakdown of vaccination rates for individual towns and First Nations. High Level's mayor, after speaking to several businesses and health workers, estimates three-quarters of the town is fully vaccinated.

The Beaver First Nation says 60 per cent of people living on the two reserves it manages are fully vaccinated.

McAteer says her town has become "a pariah" because it enforced public health measures — sometimes through its own bylaws when the provincial government lifted rules — while businesses in neighbouring towns made headlines for defying them.

The Chamber of Commerce in La Crete, an hour's drive from High Level, organized a bus to Ottawa as part of the so-called freedom convoy challenging government restrictions. Some protesters stopped in High Level for a few days to demonstrate against local restrictions.

The animosity between High Level and the county peaked in February when the county's council passed a motion to stop working with subcontractors and businesses that had a vaccination policy for employees. A letter stated that those businesses would not be permitted to enter county premises.

McAteer says she hasn't spoken to the county since.

"To protect our workers, High Level's employees had to be vaccinated, including the fire department," McAteer said.

"They've proposed that we can't enter their places of work."

Reeve Josh Knelsen says the county, La Crete and High Level "obviously" have their differences.

In an interview at his La Crete office, Knelsen said businesses have appreciated the county's decision. He couldn't say how many are not working with the county anymore.

"It used to always be where it didn't matter your political stance," said Knelsen, who added he has not been vaccinated against COVID-19.

"I can appreciate what they do as long as they don't expect us to do the same...The biggest frustration that I've seen through this all is the division that it's caused."

He said he and many others in the area he was born and raised in believe "health is a personal choice" and the government shouldn't be telling people how to take care of themselves.

He and some in La Crete had COVID-19 early in the pandemic, he said, but they were able to recover, although some didn't.

"They have a brain. Everybody has their own mind and they're very capable of using it. If you want to live up north, you have to be somewhat resilient and tough. If you're too stupid, you don't survive."

'It used to always be where it didn't matter your political stance,' said Mackenzie County Reeve Josh Knelsen, pictured in La Crete, Alta. (Jason Franson/The Canadian Press)

Even without a government order, and since he was a child, he has never gone to a family member's home if someone was sick, he said.

"I love my family. I will not jeopardize them."

Knelsen said he is ready to move on from the pandemic.

"This will be a bad memory in a very short time."

McAteer says projects High Level has been working on with the county haven't moved forward. The town has been waiting since December for the county to sign an agreement to recognize their "inter-municipal co-operation."

"I'm hoping we come together," McAteer says.

"What goes on in the north is good for all of us, and to stay together, we have to work together."

ALBERTA'S CHIEF UCP COLLABORATOR
Hinshaw sidesteps question about COVID-19 sixth wave in Alberta
KEEPS TELLING US THE DOG ATE HER RESEARCH

By Paula Tran 770 CHQR
Posted April 13, 2022 

Alberta's chief medical officer of health Dr. Deena Hinshaw said Wednesday, when asked about her own mask-wearing, that she considers where she is when deciding whether to mask. She said it is still "prudent" to wear masks, especially as COVID-19 cases and related numbers rise, but did not appear to indicate if the province might bring back masking mandates.


Alberta’s chief medical officer of health Dr. Deena Hinshaw will not say if Alberta is in a sixth wave of the COVID-19 pandemic.


During a press conference on Wednesday afternoon, Hinshaw did not directly answer a reporter’s question if Alberta is in the sixth wave of COVID-19. Instead, she said there are many questions the province does not have the answers to.

“What is the magnitude of this rise (in transmissions)? How long will it last? Those are the questions we don’t know the answers to yet,” Hinshaw said.

READ MORE: Alberta doctors call for more COVID-19 pandemic transparency

CONSERVATIVE SELF REGULATION RIGHT WING DIY

She also recommended Albertans mask up in public and take extra steps to protect themselves and others as COVID-19 transmissions rise.

“I would encourage people to consider their own risk factors and the risk factors of those around them… To be a part of protecting our communities right now,” she said.

“Our actions impact other people as well.”

1:28 Alberta’s top doctor says it is ‘prudent’ to still wear masks

Hinshaw also urged Albertans to take precautions if they are thinking of gathering for the Easter weekend. Indoor social gatherings create a higher risk for transmission, she said.

“We know that people gain benefits from spending time with people they care about,” Hinshaw said. “I would recommend people consider who they’re going to be gathering with and consider what precautions are appropriate for those individuals.”



Hinshaw’s response comes after chief public health officer Dr. Theresa Tam confirmed Canada is in a sixth wave of COVID-19 on Tuesday.

It also comes after Alberta reported an increase in hospitalizations and ICU admissions, something Health Minister Jason Copping said was not unexpected.

3:25 Alberta pauses use of COVID-19 antibody treatment Sotrovimab

As of Wednesday, 1,503 people in hospital have COVID-19. Of those, 48 are in the ICU.

According to provincial data, 37 COVID-19 deaths have been reported since last weeks update. Hinshaw said the province experienced of an average of five deaths per day during the week of April 5 to 11.


During the same time period, the province recorded 8,191 new lab-confirmed cases of COVID-19 from 23,399 tests. The data breaks down as follows:

April 5: 1,039 cases, 3,867 tests completed
April 6: 1,014 cases, 3,619 tests completed
April 7: 929 cases, 3,862 tests completed
April 8: 945 cases, 3,633 tests completed
April 9: 822 cases, 3,385 tests completed
April 10: 590 cases, 2,221 tests completed
April 11: 842 cases, 2,812 tests completed

Health officials warned the total number of Albertans with COVID-19 is likely far higher than what is being reported due to limitations on who is eligible to receive a PCR test in the province.

1:34Alberta’s top doctor advises people think about Easter gathering precautions as COVID-19 numbers rise


Copping said in a statement last Wednesday that while the number of COVID-19-positive patients in hospital remains stable, the Omicron subvariant BA.2 now makes up about 80 per cent of new cases in Alberta.

READ MORE: County divided: COVID-19 response strains relationships in Alberta’s least-vaccinated region

He urged Albertans to get their booster doses of a COVID-19 vaccine, especially since Alberta’s health-care system is still at capacity.

“The whole system is busy and we’re working to increase capacity across our entire system,” he said at Wednesday’s press conference.

“We’re going to see some increased pressure from BA.2 for a few weeks, but likely not what we saw in December and in January.”

NDP Health Critic David Shepherd criticized Copping’s statement, accusing the UCP of mismanaging public health care. He pointed to Dr. Verna Yu’s departure from Alberta Health Services as an example.

“At a time of severe strain and challenges in frontline care, the UCP’s answer is more chaos and upheaval. This is the wrong direction,” Shepherd said in a statement on Wednesday.

© 2022 Global News
UCP COVID COVER UP
Alberta top doctor’s claim of cabinet confidentiality challenged in court

By Paula Tran 770 CHQR
Posted April 7, 2022 
Alberta’s chief medical officer of health Dr. Deena Hinshaw in Edmonton on Thursday, Sept. 23, 2021. 
Credit: Chris Schwarz/Government of Alberta

Alberta Court of Queen’s Bench Justice Barbara Romaine will decide next week whether or not a question regarding cabinet ever ignoring public health recommendations would infringe on cabinet confidentiality.


The decision is part of a civil trial that began on Monday. Several individuals and churches launched a constitutional challenge in December 2020, accusing the provincial government of violating Albertans’ rights by imposing public health orders and restrictions at the beginning of the COVID-19 pandemic.

Throughout the trial, Alberta’s chief medical officer of health Dr. Deena Hinshaw maintained that public health restrictions were necessary to protect the province’s health-care system during the pandemic.

Hinshaw also repeatedly said she provided recommendations to elected officials and used their policy decisions to inform subsequent public health orders.



During cross-examination on Wednesday afternoon, lawyer Jeffrey Rath asked Hinshaw if the premier or his cabinet ever rejected her recommendations related to COVID-19 public health restrictions.

Nick Parker, a lawyer for the province, objected and raised concerns about cabinet confidentiality.

Nicholas Trofimuk, another lawyer for the province, presented a certificate from the executive council to the court. The certificate states Hinshaw was involved in confidential, high-level discussions with Premier Jason Kenney and his cabinet about the province’s COVID-19 response, Trofimuk said.

These discussions must be kept confidential because COVID-19 is still a politically sensitive policy issue and publishing details could interfere with cabinet decisions, Trofimuk and Parker argued.


READ MORE: Alberta’s top doctor takes stand during civil trial regarding response to COVID-19

Rath disagreed. He also said the public deserves to know if Hinshaw’s decisions were being presented as public health orders instead of political policies. He also accused the government of interfering with the civil trial, saying the timing of the objection needs to be questioned.

Rath then accused the government of promoting Hinshaw’s orders under the Public Health Act instead of the Emergencies Act.


“This is like the premier picking up the phone in the middle of a judicial proceeding and telling the administrative decision-maker how to decide the matter,” Rath said during cross-examination on Thursday morning.

“Any professional acting ethically or competently, when faced with that situation, would resign. We are entitled to ask those questions.”

Romaine to ask Hinshaw questions privately


At the end of cross-examination on Thursday, Romaine took Hinshaw aside to ask three questions privately. These questions will form her decision around the cabinet confidentiality issue, she said.

The questions were:

Did the premier and cabinet, including the priorities implementation cabinet committee and the emergency management cabinet committee (loosely referred to as cabinet), ever direct you to impose more severe restrictions in your CMOH orders than you had recommended to them?

Did cabinet ever direct you to impose more severe restrictions on particular groups such as churches, gyms, schools and small businesses than you had recommended to them?

 

Did you ever recommend that restrictions should be lifted or loosened at any time and that recommendation was refused or ignored by cabinet?


READ MORE: COVID-19 in Alberta: 990 people in hospital as of Wednesday

The answers to those questions will only be submitted to the public record if Romaine decides they are relevant to the civil trial. Otherwise, they will remain confidential.

Both lawyers agreed that they will not present closing arguments until Romaine makes her decision next week. Parker said the Crown counsel reserves the right to ask for additional time to get further instructions and file an urgent appeal due to the precedent-setting nature of the decision.

The trial will continue next week.

'Ultra-Low-Cost Carrier' Flair Airlines Could Get Shut Down For Not Being Canadian Enough

Canada Edition (EN) - Tuesday
Narcity

Canada's "ultra-low-cost carrier" Flair Airlines could be shut down for not being Canadian enough and that could ground travel plans.

Flair could lose its right to operate in Canada because of concerns that too much of its operations are controlled by a U.S. partner, according to a preliminary review from the Canadian Transportation Agency obtained by Global News.

The review is said to be largely about 777 Partners, a major partner in Flair's operations that is Miami-based, which invested in the airline in 2018.

The American company also owns the fleet of planes that Flair leases for its flights and has members on the airline's board of directors, according to Global News.

On March 3, 2022, the Canadian Transportation Agency issued a preliminary determination that Flair might not be controlled by Canadians and therefore might not actually be "Canadian."

"Flair holds licenses authorizing domestic, scheduled international, and non-scheduled international air services. Pursuant to the [Canada Transportation Act], Flair must be Canadian to provide these air services," the agency said in its preliminary determination.

Flair has been given 60 days from when the determination was issued to respond.

At the end of the review process, the Canadian Transportation Agency will put out a final public determination.

The decision on whether or not the airline's operating licence will be suspended could come at the beginning of May.

If that happens, that would mean Flair is no longer allowed to operate in Canada and any plane tickets people have would be invalid.

Currently, the airline has flight routes to more than 30 Canadian and North American destinations including Cancun, Nashville, Las Vegas, Hollywood, Chicago, New York, Orlando and Los Cabos.

According to Global News, Flair is seeking an exemption to the rule set out in the Canada Transportation Act.

Flair Airlines could be grounded in Canada over foreign control concerns

By Craig Lord Global News
Posted April 12, 2022 

Ultra low-cost carrier Flair Airlines could lose its right to fly in Canada over concerns that too much of its operations are controlled by a U.S.-based partner, according to a preliminary review from the country’s transportation watchdog obtained by Global News.

The decision, for which Flair is seeking an exemption, could see the airline’s operating licence suspended on May 3, leaving Canadian air travellers with summer travel plans stranded at the gate.

Some air industry observers are watching the proceedings skeptically, wondering about the lack of transparency around the review, while others say the airline has long been playing too loose with Canadian ownership requirements.

“If you’re buying a ticket for travel beyond May 3rd… buy insurance and make sure you’re ready for some turbulence along the way,” says John Gradek, a professor with McGill University’s aviation management program who’s following the case.


Airline analyst on the growing pains Flair Airlines is going through as an ultra-low-cost carrier – Feb 20, 2019



Why is Flair’s licence in jeopardy?

Flair Airlines is based in Edmonton, Alta., but operates routes connecting many smaller markets in Canada to other North American destinations.

Though it technically began operations in 2005, it was in 2018 that Flair formally joined the emerging crop of ultra low-cost carriers (ULCC) in Canada including WestJet’s Swoop and Lynx Air. Flair offers a no-frills travel experience but appeals to consumers with eye-grabbing deals such as $69 flights from Toronto to Vancouver.

Flair currently operates a fleet of 13 Boeing 737 aircraft, but has stated plans to scale up to 50 aircraft by 2025. The airline has even received federal support to do so, having gotten $11 million in grants through the Regional Air Transportation Initiative to help expand its operations.


READ MORE: Flair Airlines to expand fleet by 30 aircraft by mid-2023


But despite its long-term ambitions, the Canadian Transportation Agency (CTA) — the federal watchdog that oversees the airline industry — launched a review in late 2021 based on concerns that Flair does not meet Canadian ownership requirements under the Canada Transportation Act.

The review is largely tied to a major partner in Flair’s operations, Miami-based 777 Partners, which invested in the airline in 2018. The U.S. company also owns the fleet of planes Flair leases for its operations and has members on the airline’s board of directors.



Flair Airlines unveils its first Boeing 737 MAX – Jun 10, 2021

The agency came out with a short statement announcing its preliminary decision on March 3, 2022. Its findings said then that Flair indeed “may not be controlled in fact by Canadians.”

It then gave Flair 60 days to respond to its ruling before the decision is finalized.

Global News obtained a redacted copy of the CTA’s preliminary decision, which included the basis for its findings.

The CTA wrote that Flair’s non-Canadian ownership does not exceed the 49 per cent allowed under the Act. Additionally, 777 Partner’s overall ownership stake of Flair does not exceed the 25 per cent allowed by a single non-Canadian entity.

However, the CTA found that 777 influence over the company’s day-to-day or strategic operations likely constitutes “control in fact” — another key factor determining whether a firm is Canadian enough to qualify for a licence.

Since 777 has more than half of the seats on Flair’s board, and the airline is effectively financially dependent on its Miami-based investors for the leasing of its jets, the CTA found that 777 has more sway in the company’s operations than the balance of its Canadian shareholders.

READ MORE: Canadian airlines adding flights, capacity in bid to recover COVID-19 losses

“After considering all of the facts together, the agency finds that 777’s influence over Flair is dominant and that 777, therefore, may have control in fact of Flair,” the decision reads.

Since the CTA’s ruling is redacted, it leaves out information about who, specifically, the shareholders and board members of Flair are, as well as entire points contained in final analysis.

Global News reached out to 777 Partners for comment but did not receive a response before publishing.

The CTA confirmed in a statement to Global News that if Flair Airlines fails to remedy the watchdog’s concerns, it could have its licence suspended.

“Should Flair’s licences be suspended, Flair would be precluded from operating any flights,” the statement read.

The CTA said it has not yet received a response from Flair Airlines regarding its concerns.

In an emailed statement to Global News, the airline’s CEO, Stephen Jones, said Flair is working “very cooperatively” with the CTA and he “expects that the majority of the issues raised will be resolved in the very short term.”

Flair says it’s Canadian — but asks for time to meet regulations

In the meantime, Flair has sought relief elsewhere — through Canada’s Minister of Transportation, Omar Alghabra.

The company is requesting an 18-month exemption to the rules for Canadian control until it can make certain changes to address the CTA concerns, according to a letter sent from Flair to the minister obtained by Global News.

Flair cites the COVID-19 pandemic as a significant drag over the past two years, which caused it to lean more heavily on 777 Partners as a source of financing.

The company says it is actively looking for more Canadian sources of investment, which could skew control north of the border again, but says the May 3 deadline is too soon for it to secure such deals. Flair does claim the “majority” of the other issues identified by the CTA can be resolved by that deadline.

Flair also argues that denying its exemption would amount to grounding the airline, which serves airports in many secondary markets such as Abbotsford, B.C., Waterloo, Ont., and Deer Lake, Nfld.

0:22 Flair Airlines to add routes between Winnipeg and Regina, Saskatoon in 2022Flair Airlines to add routes between Winnipeg and Regina, Saskatoon in 2022 – Oct 28, 2021


Such a move would ultimately cost jobs, reduce competition in the market and cause economic damage to the country, Flair claims, as well as leaving thousands of Canadian air passengers with summer travel plans stranded.

“This clearly runs against public interest,” the letter reads.

Flair says in the letter it will be responsible for 1,000 “direct jobs” by mid-2022, if it remains a going concern, with thousands more jobs sustained as a result of its operations.

Gradek says Flair’s apparent strategy of “enamouring” itself with the Canadian public and smaller airports has been “very dangerous.” He argues the company has been building up “political clout” while “flaunting the regulations when it comes to Canadian ownership.”

“This was a willful act by Flair to attempt to circumvent or bust through the regulations. They knew exactly what the regulations are,” he tells Global News.

“They’re trying to basically play this out in the game of public opinion.”

READ MORE: Flair Airlines to train staff on human trafficking signs as part of #NotInMyCity program

While Transport Canada confirmed to Global News it received the letter asking for an exemption, it said it was still in the midst of collecting feedback from industry stakeholders on the proposal and would not comment on whether it would grant Flair’s request.

“Such consultations are designed to support the rigour of the Minister’s assessment of the request, as well as transparency and accountability. It would be premature to speak in terms of conditions associated with any potential exemption,” the ministry’s senior communications adviser, Hicham Ayoun, said in an emailed statement to Global News.

Why is this coming up now?

The CTA’s preliminary ruling does not say why it launched a review of Flair’s ownership and the agency declined to provide specifics when asked by Global News.

Gábor Lukács, president of the Air Passenger Rights consumer protection group, says he is concerned about the lack of transparency surrounding the investigation.

The CTA’s preliminary decisions are normally released publicly with the full analysis document. The short statement posted on its website on March 3 and the redacted copy reviewed by Global News do not present a full picture of a scenario that the agency is now soliciting industry feedback on.

READ MORE: Did a federal agency try to use privacy laws to hide a complaint about an airline?

“What the government has done is put out this innuendo that something might be wrong with Flair without allowing the public, the experts, the media, to form meaningful opinions on whether that has any legs,” he says.

“Perhaps it does. Perhaps it doesn’t. But right now, this is causing harm to Flair’s reputation.”

That’s not to say Lukács is a big fan of Flair’s standard operations — he tells Global News he’s fielded numerous complaints about instances of Flair cancelling flights and failing to promptly rebook passengers on other airlines.

In fact, he says he would rather see the CTA go after those glaring violations of air passenger rights than foreign ownership concerns, which, in the short term, do not have a great bearing on consumers.

Singling out Flair, which has filed Competition Bureau complaints against WestJet’s Swoop over allegations of undercutting competitors, reeks of unfair targeting, Lukács says.

“Why are they making such a … dog-and-pony show over one airline for a requirement that, in the short run, strikes me as marginal, posing no risk to consumers, when the practice of cancelling flights and then not rebooking people properly and immediately does affect consumers?” he says.

“Now that would be something important to focus attention on, against all our airlines, Flair, WestJet, Sunwing, Air Canada, Air Transat, all of them.”

Gradek says that if the CTA ultimately decides Flair does not meet the licensing requirements, the airline could appeal the call, maintaining its right to fly until a secondary ruling is made. If that fails, exact penalties and rectification is up to the watchdog.

“It’s complicated. It all depends how forceful the CTA wants to be with Flair,” Gradek says.

The CTA says that if Flair does lose its licence, it would have to meet its obligations under the “contract of carriage” — the agreement struck between air carrier and passenger.

According to Lukács, case law has shown passengers would have a right to claim refunds against an airline if the company did go out of business before their trip. “But the question is whether there is any money left to refund,” he notes.

More practically, anyone who bought airfare via credit card can get a refund via a chargeback, which puts the onus on the card issuer to recoup their payments.

But Jones said in his statement that the company is anticipating continuing to grow its operations this summer, with a fleet of 20 aircraft expected to take to the skies by mid-June.

“Flair is here for the long term and is committed to finally bring sustainable, affordable airfares to all Canadians, and to every destination we serve now and in the future,” he said.

“Customers can absolutely book with confidence, and we look forward to welcoming them aboard this summer.”

— with files from Global News’ Ross Lord
   

RIOT CONTROL AGENTS ARE CHEMICAL WEAPONS

Russia could mask chemical munitions with riot control agents: Pentagon update 

Yesterday 

Russia could use riot control agents to mask chemical weapons

A defense official said the U.S. cannot confirm whether Russia has used any chemical weapons in Mariupol or elsewhere in Ukraine, but the Defense Department has seen evidence Russia could consider disguising use of chemical weapons by making them look like more benign riot-control agents.

"In the past we've had indications that that could be one thing that the Russians look at, is the potential mixing of agents with the with the idea that they could disguise a more serious attack by using the vehicle and the techniques of riot control agents," the official said.


© Felipe Dana/APResidents stand outside their apartments as shops burn after a Russian attack in Kharkiv, Ukraine, April 11, 2022.

Pentagon press secretary John Kirby put out a similar statement Monday night addressing social media reports claiming Russia used a chemical weapon in Mariupol.

"These reports, if true, are deeply concerning and reflective of concerns that we have had about Russia's potential to use a variety of riot control agents, including tear gas mixed with chemical agents, in Ukraine."

Kirby, like the official on Tuesday, emphasized the U.S. cannot confirm the allegations.

On Tuesday, Kirby told reporters the U.S. is looking into the matter.

"We're obviously taking it seriously and we're monitoring it," Kirby said. "We're trying to do the best we can to figure out what, if anything, happened."


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