As spring break approaches | Carrier Lynx Air to cease operations on Sunday

As spring break approaches, Lynx Air, one of the Canadian low-cost carriers that offers routes from Montreal and Quebec, will cease operations on Sunday after completing its last flights. This decision will disrupt the plans of travelers who relied on the airline to get around during their vacations.

“Unfortunately, we were unable to secure adequate funding and requested [de nous placer à l’abri] of our creditors, explained Lynx Chief Operating Officer Jim Sullivan in an internal memo sent to his employees that The Press was able to consult. I know this is a terrible shock to many of you and this is not how our story was supposed to unfold. »

This decision by the Calgary-based company comes less than two years after its inaugural flight. In February, the company was operating 12 to 15 flights per week from Montreal. The Press had recently reported that Lynx had held talks with another Canadian low-cost carrier, Flair Airlines, about a potential merger between the two companies. These discussions will obviously not materialize.

In its memo to employees, Lynx attributes its debacle to inflation, fuel prices, exchange rates, high financing costs, fees imposed in the airline industry in Canada as well as “competitive tension” . On its website, Thursday evening, a message already warned that the company’s days were numbered. A page on the options available to affected customers was already online, but only in English.

Visit Lynx Air’s page for its affected customers

Limited options

Lynx offers few options to its customers. In the evening, Thursday, The Press had already received emails from travelers whose departure was planned after February 26 and who were wondering what to do. The carrier suggests that those who purchased a ticket for a flight after February 26 contact their credit card company for a refund. For its clients already traveling and whose return is planned after the end of the activities, Lynx makes the same suggestion in order to recover their money for the remaining portion of their trip.

“Everything becomes a headache,” emphasizes Jacob Charbonneau, president and CEO of the Vol en retard company. Even if we get a refund before our departure, we have to buy new tickets. We are talking about last minute prices. This may therefore be more expensive. There may also be consequences if this changes travel dates and hotel reservations had been made at the destination. »

In Quebec, any consumer who has dealt with a travel agency to purchase a ticket can turn to the Travel Agents Compensation Fund (FICAV). It is rarer for consumers to go through an agency to obtain tickets from a low-cost airline, recognizes the manager of Vol en tard.

Emerging

Despite its ambitions, Lynx’s footprint was limited in the Canadian market. There are nine Boeing 737 Max 8s in its fleet. The company ultimately wanted to operate 46. There were signs that there appeared to be challenges ahead at Lynx. The company had still not found a successor to its former president and CEO Merren McArthur, who left her position last September. Indigo Partners LLC, the firm of businessman Bill Franke, is one of Lynx’s largest shareholders.

The surprise resignation of M^me McArthur was announced in June 2023, two years after her arrival. The manager had agreed to stay on for a few additional months to “select and appoint a new CEO,” Lynx explained at the time.

“With the fees, taxes and other tariffs in the airline industry, it’s difficult to find your place,” underlines Robert Kokonis, president of the consulting company Air Trav. The market is also very seasonal in Canada. There is good traffic in the domestic niche [intérieur] during the summer, but in winter, sun destinations dominate. We are also in a very large country where populous regions are not close to each other, like in Europe. It changes the dynamic. »

Airline industry consultant Mike Arnot believes that the disappearance of Lynx will not have a significant impact on ticket prices since the company did not offer “a huge amount of seats in the Canadian market.”

The end of Lynx should leave more room for Flair. This Edmonton-based company also faces financial challenges. According to court documents, the company owes $67.2 million in unpaid taxes to Ottawa, which prompted the Canada Revenue Agency (CRA) to obtain an order for the seizure and sale of the airline’s assets. Flair’s daily operations were not disrupted, however, as the carrier said it was able to come to an agreement with the tax authorities.