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Air Canada
Symbol AC
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Close 2024-02-23 C$ 18.17
Market Cap C$ 6,513,473,034
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Globe says Air Canada sees discounter Lynx pack it in

2024-02-26 06:53 ET - In the News

Also In the News (C-ONEX) Onex Corp

The Globe and Mail reports in its Saturday edition that discount airline Lynx Air says it stopped flying Sunday night after being granted creditor protection in an Alberta court. The Globe's Eric Atkins writes that the Calgary-based airline, which flies nine Boeing 737 Max aircraft and launched in April, 2022, told employees in a memo it was unable to secure enough financing to stay in business. In a court filing, Lynx said it is unable to repay its loans, faces unspecified enforcement actions from suppliers and barely has enough cash to operate day to day. Lynx's failure underscores the hurdles discount airlines face in Canada -- trying to offer cheap seats with a shallow pool of investment capital while paying high aviation fees in a small market spread over a large country. Carol Leon of Toronto said the airline's shutdown has stranded her two daughters, aged 19 and 22, in Cancun, Mexico, with nowhere to stay and no way to get home. Ms. Leon found a return flight for later next week with WestJet, but says $2,200 for two fares is unaffordable. Boris Stojanov of Calgary said his credit-card company rejected his request for a refund. He said Lynx owes him $3,000 for two coming family trips, including to Disneyland.

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