TORONTO — Flair Airlines is accusing a financial services firm of withholding about $25 million in funds from the company.

The budget ******* says in a press release that Peoples Trust has “played a crucial role in facilitating the regular transfer of funds to Flair Airlines” for over a year. 

But it says that in February, the financial services firm ceased regular transfers to Flair. 

Flair CEO Stephen Jones says in the release that the ******* has tried to resolve the issue amicably, but it plans to pursue a resolution through legal channels. 

He says Flair has already implemented an existing alternative payment processing system to avoid disruptions to travellers. 

Peoples Group, which Peoples Trust is a part of, says it “always maintains robust standards around the management of funds.”

“We set and manage card transaction reserves following standard industry practices to protect consumers who have pre-paid merchants — like airlines — for services they have not yet received,” it said in an emailed statement.