summary
- Flair Airlines and LynxAir are reportedly in talks to merge.
- Possible mergers could further consolidate Canada’s low-cost airline industry.
- Generally, the goal of consolidation is to increase market share, reduce costs, and improve efficiency.
Canada’s airline industry may be on the brink of a new merger involving two low-cost carriers. According to multiple Canadian media outlets, Flair Airlines and Lynx Air are reportedly preparing to announce a merger plan.
airline observerfirst reported the news on February 7, 2024, but revealed that the two low-cost airlines are in advanced talks and an agreement could be announced within the next few weeks. As part of the deal, Flair will acquire Lynx Air.
meanwhile, star of toronto It was also featured in the news. According to their report, three separate industry sources confirmed that the two airlines are indeed in talks about a possible merger. However, the exact timing and structure of the agreement is not yet clear.
Photo: sockagphoto | Shutterstock
Simple Flying has contacted Flair Airlines and Lynx Air for comment.
Further integration
Airline consolidation is a global trend driven by multiple factors, primarily focused on increasing market share, reducing costs, increasing connectivity, and increasing operational efficiency.
If the Flair-Lynx merger goes through, it would further the ongoing consolidation trend in Canada’s low-cost airline industry. WestJet recently acquired Sunwing Airlines and plans to integrate it into its core business by October 2024.
Lynx launches new route between US and Canada
The Canadian low-cost airline recently celebrated its first flight to Tampa.
Founded in 2005 and headquartered in Calgary, Flair Airlines began operations in 2017. Currently, Flair Airlines has a total of 20 Boeing 737 aircraft (18 737 MAX 8s and 2 737-800s), with an average age of 5.2 years. Plane Spotters.net.
Like Flair, Lynx Air is also headquartered at Calgary International Airport (YYC). Previously known as Enerjet, it was rebranded as Lynx Air in 2021. The first flight under the Lynx Air brand took place on April 7, 2022. According to Planespotters.net, the company currently has nine Boeing 737 MAX 8 aircraft in its fleet. Average age 2.9 years.
Photo: sockagphoto | Shutterstock.
It is worth noting that US-based 777 Partners holds a 25% stake in Flair Airlines, while Indigo Partners is one of the shareholders of Lynx Air. If this agreement is confirmed, the trajectory of the flare will change significantly.
Over the past year, the low-cost airline has faced several challenges, including the seizure of four aircraft. Additionally, it was revealed that the airline reportedly owes more than $67 million in unpaid taxes.
Canada’s Flair Airlines reportedly owes $67 million in taxes
This fee is due to import duties paid on the company’s Boeing 737 aircraft.
In terms of destinations, both airlines share similar market outlooks, with a focus on key destinations in Canada and the United States. Currently, Lynx Air flies to 23 destinations, including 14 in Canada, eight in the United States, and one in Mexico. Flair Airlines flies to more than 35 destinations across Canada, the United States, Mexico, the Dominican Republic, and Jamaica.
What do you think about this? Do you think this merger will be beneficial for Canada’s aviation industry? Let us know in the comments section below.
