TORONTO — Questions surrounding Flair’s ownership are prompting a closer look by the Canadian Transportation Agency (CTA).

According to a report in The Globe and Mail, the CTA has formed a panel to look into the situation, following the results of a preliminary investigation.

Foreign ownership in Canadian airlines can’t be higher than 49%. That percentage drops to 25% if the foreign investment is from one individual. There are also rules around foreign interests controlling a Canadian carrier.

777 Partners, based in Miami, owns 25% of Flair, plus has three of the five seats on its board, and leases a number of aircraft to Flair.

The Globe and Mail received this statement from Flair CEO Stephen Jones: “Flair is completely compliant with all applicable airline regulations, including those dealing with Canadian control. Flair is a private company, and while we have always and will continue to coordinate with all regulators as necessary, our shareholders and financial affairs are confidential.”