Discomfiture of Lynx Air | Montreal-Trudeau succeeds in recovering nearly 2 million

Unlike many of its counterparts, the Montreal-Trudeau operator was able to recover some $2 million in overdue fees claimed from Lynx Air, this low-cost air carrier lost to financial disaster last February – at the gates of Spring Break.

According to recent court documents filed under the Bankruptcy and Insolvency Lawan agreement to stagger payments was reached between Aéroports de Montréal (ADM) and the company a few weeks before it sought protection from its creditors.

“We can confirm that all amounts owed by Lynx Air have been recovered,” the non-profit organization said in an email Friday.

ADM claims that the “financial details” are “confidential”, but according to documents prepared by the FTI controller, it is a sum of 1.7 million for airport improvement fees – which are imposed on all Airlines companies.

These fees are included in the price of a plane ticket and are used to finance and upgrade airport infrastructure.

The last payment made to ADM dates back to 1^er last April, court documents state.

The picture is very different for the Calgary, Vancouver, Edmonton and Halifax airports. Together, they are demanding at least 4 million in unpaid fees from Lynx Air. Half of this amount was to be paid to the Calgary airport.

Ultimatum

Before abruptly announcing the end of its activities last February, Lynx Air had stopped paying airports for airport fees.

The carrier was so late that Montreal-Trudeau threatened to ban it from its facilities.

This ultimatum was launched on February 8 by the vice-president of finance and administration and CEO of ADM, Aymeric Dussart, in a letter sent to the company whose head office was in Calgary.

“Lynx Air will be refused access to airport facilities and its letter of authorization will be terminated in its entirety, without prejudice and without further notice or delay,” wrote Mr. Dussart in this letter that The Press had been able to consult.

This failure occurred less than two years after the inaugural flight of the Alberta carrier. He no longer had enough money in his coffers to continue his activities. He attributed its fall to inflation, fuel prices, exchange rates, high financing costs as well as fees imposed in the airline industry in Canada, in particular. From Montreal, the company operated 12 to 15 flights per week.

Taking into account its aircraft leases, Lynx’s receivables amounted to $600 million, according to documents filed with Alberta courts. The carrier lost 112 million last year while generating total revenues of around 166 million. In 2022, the shortfall amounted to 76 million, on a turnover of 58 million.

The Lynx Air debacle also caused well-known Quebec investors to lose money. Stepworth Holdings, controlled by Stephen Bronfman, and Stephenson Management, owned by the couple formed by Mitch Garber and Anne-Marie Boucher, each owned 11.5% of the airline.