Calgary-based Lynx Air, founded less than two years ago with a vision to enhance affordability in air travel for Canadians, will cease operations as of Monday. This announcement coincides with the airline’s initiation of creditor protection proceedings through the Court of King’s Bench of Alberta.
Facing mounting challenges such as escalating operating costs, fuel prices, and regulatory hurdles, Lynx Air cites insurmountable obstacles that have impeded its viability despite efforts to enhance operational efficiency and explore strategic alternatives.
The airline’s termination of operations is slated for 12:01 a.m. MT on Monday, with flights continuing until then. Legal counsel Osler, Hoskin & Harcourt LLP and monitor FTI Consulting Canada Inc. are aiding Lynx Air in navigating this process.
Responding to the situation, a spokesperson for Lynx Air expressed the company’s focus on assisting affected passengers in finding alternative travel arrangements amidst growing financial constraints.
With liabilities surpassing assets, Lynx Air has already defaulted on debts to various entities, including service providers and airport authorities.
Meanwhile, passengers like Kara Brereton-Cooke find themselves grappling with sudden flight cancellations and logistical challenges, echoing the widespread impact of Lynx Air’s decision.
In response, WestJet, another Calgary-based airline, is offering discounts on select routes previously serviced by Lynx Air, aiming to alleviate some of the disruption caused by the cessation of Lynx Air’s operations.
Reflecting on the airline industry’s volatility, industry observers like Deborah Yedlin underscore the formidable challenges faced by discount carriers, particularly in navigating airport fees and economic headwinds.
As Lynx Air grapples with its closure, stakeholders, including the Canadian Union of Public Employees (CUPE) and industry leaders, are mobilizing to support affected employees and passengers while navigating the complexities of the aviation landscape.