(Calgary) Lynx Air says customer refunds are a significant expense for the insolvent company due to an uncooperative subcontractor.
The ultra-low-cost carrier, which ceased operations and filed for protection from creditors in late February, claims in court filings that the company responsible for handling reservations, Texas-based Saber Corp., “refused to help” with the reimbursement of passengers.
Lynx says that leaves it no choice but to work with its credit card provider to manage bills for travelers whose flights have been canceled.
Lynx points out that the chargeback process is costly, resulting in significant fees for the airline that are ultimately “to the detriment” of investors hoping to get some of their money back.
Saber Corp. did not immediately respond to a request for comment on the situation.
The closure of Lynx comes as low-cost airlines that have emerged in recent years face continued financial pressures amid industry consolidation following the implosion of the travel sector during the COVID-19 pandemic. 19.