In default of payment to Montréal-Trudeau | Lynx Air no longer paid airports

On the verge of ceasing its activities, Lynx Air protected itself from its creditors on the eve of a deadline requiring it to pay more than half a million to Aéroports de Montréal (ADM) in overdue fees. The low-cost air carrier was so late that the operator of Montreal-Trudeau threatened to ban it from its facilities, we learned The Press.

This ultimatum was launched on February 8 by ADM’s vice-president, finance and administration and chief financial officer, Aymeric Dussart, in a letter sent to the Calgary-based company.

“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,” writes Mr. Dussart, in his missive, that The Press was able to consult.

A payment of $560,017 was expected as of Friday February 23. Other payments were to be staggered until 1^er next April. According to court documents filed by Lynx seeking court protection under the Bankruptcy and Insolvency LawADM is claiming unpaid airport improvement fees – which are imposed on all carriers – of 1.7 million.

Sheltered from its creditors since Thursday, the insolvent low-cost air carrier will have ceased its activities this Monday, as spring break approaches. It was not possible to know on Friday whether the operator and manager of the Montreal-Trudeau and Mirabel airports would be able to recover the overdue amount. ADM did not offer further details on this issue.

“Lynx Air was in default of payment to ADM,” said its director of corporate communications and media relations, Anne-Sophie Hamel. In the Lynx case, we were informed of their decision without obtaining notice, like the 14 other Canadian airports where the carrier operated. This is obviously a deplorable situation for passengers, particularly because it occurs at the dawn of spring break. »

Not just in Montreal

The Greater Toronto Airports Authority, which operates Pearson Airport, was also stomping its foot on Lynx over airport fees. In this case, nearly 2.5 million in unpaid fees are being claimed from Lynx.

In its request to protect itself from its creditors, the airline claims that it no longer had enough money to continue its activities on a daily basis. Additionally, supplier appeals seemed to be piling up.

“Some essential suppliers have recently decided to take measures, which would jeopardize the activities [de la compagnie] and would likely cause activities to cease in a chaotic and disorderly manner,” the motion reads.

The end of Lynx therefore comes less than two years after its maiden flight. From Montreal, the company operated 12 to 15 flights per week. 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 of them.

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.

Lynx’s main shareholder is the private investment firm Indigo Partners LLC, owned by businessman Bill Frankie, who is also present in low-cost airlines such as Frontier Airlines (United States) and Wizz Air (Hungary). The Claridge firm, owned by Stephen Bronfman’s family, holds a stake of around 11%.

Read “Lynx Air customers taken by surprise: “I consider myself lucky in my bad luck””