summary
- Lynx Air will cease operations due to the financial burden of rising operating costs.
- The airline plans to apply under the Companies Creditors Arrangement Act to restructure its finances and give creditors an opportunity to pay.
- The airline urged passengers who booked flights after February 26 to contact their credit card companies for refunds.
Canada’s ultra-low-cost airline Lynx Air has bowed to financial stress and market pressure and has decided to end its operations. The airline will operate its final flight on Sunday and will cease operations thereafter. The low-cost carrier began operations two years ago, but its demise is another example of how ruthless the airline industry can be.
Lynx to cease operations
Lynx Airlines announced that it will cease operations as of 12:01 a.m. PST on Monday, February 26th. The airline said in a social media post that a number of factors were to blame, including inflation, rising fuel costs, exchange rates and regulations. The costs, among other things, proved too great for airlines to sustain operations.
Jim Sullivan, the airline’s chief operating officer, released a memo to employees that circulated online Thursday. He explained how significant the various operating costs were for the airline, which led to this unfortunate decision.of Calgary Herald Quote from memo,
“We know this is a terrible shock to many of you, but this was not the way our story was intended to unfold. We did our best, but with the added pressure and the risks… This growth has led to today’s announcement.”
Photo: sockagphoto | Shutterstock
The airline’s next step will be to seek protection because it owes money to multiple creditors. Reuters Lynx reported that the company plans to file under the Companies Creditor Arrangement Act, a Canadian federal law that gives large companies time to restructure their finances and avoid bankruptcy. This gives the creditor a chance to get back some form of payment for what they owe.
What happens if an airline suspends operations?
Some airlines have managed to recover, while others have completely suspended operations.
What happens to passengers with reservations?
The impact of this development will become clearer in the coming months, but the immediate concern if an airline suspends operations is for passengers who were booked on the flight. Lynx said it would fulfill its flight commitments until Sunday night, but what happens to those who booked flights after that?
The airline’s website states that passengers who booked Lynx flights after February 26 should contact their credit card company for a refund. Lynx Air’s contact center says they cannot issue refunds.
Travelers who are in the middle of their trip and have a return flight scheduled after February 26 should also follow the same steps to contact their credit card provider. Alternatively, you can try to change your flight to this weekend by contacting the airline’s contact center. The airline’s website has a FAQ section dedicated to this.
He passed away almost two years later.
Lynx Air took to the skies for the first time on April 7, 2022, with the inaugural Boeing 737 MAX flight between Calgary and Vancouver. Since then, it has carried nearly 2 million passengers and expanded its service across Canada as well as the United States and Mexico.
Photo: Robin Guess | Shutterstock
Just a few days ago, there were reports that Lynx was in talks to merge with Flair Airlines, but those talks apparently never materialized. It remains to be seen how this story will unfold in the coming months, from negotiations with creditors to passenger refunds to an uncertain future for employees.
Were your travel plans also affected by the Lynx announcement? What has your experience been like with the airline? Leave a comment below.