02:51:25 EDT Sat 27 Apr 2024
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Air Canada
Symbol AC
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Close 2024-02-26 C$ 18.46
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Globe says Air Canada sees amateurish Lynx go under

2024-02-26 06:42 ET - In the News

Also In the News (C-ONEX) Onex Corp

The Globe and Mail reports in its Monday edition that Canada has a long list of discount airlines that have gone under. Guest columnist Monette Pasher says that for Lynx Air, all it took was two years. The airline announced its demise with a news release congratulating itself for doubling its launch-day passenger volume and blaming a salad of economic "headwinds" beyond its control, including "rising operating costs, high fuel prices, exchange rates, increasing airport charges and difficult economic and regulatory environment." Not cool, Ms. Pasher says. First, passengers need to come before blame. Despite announcing that it would continue flights through the weekend and make "every effort" to assist travellers, passengers have clearly come last. Rather than issuing refunds, Lynx left travellers to sort out refunds with their credit-card companies. Second, nearly everyone in aviation could clearly see that charging passengers as little as a $39 base fare to travel by jet plane in 2024 is a fundamentally unsustainable way to run a business. Labour and fuel cost what they cost; exchange rates fluctuate; the regulatory environment is known. Responsibility for Lynx's demise starts and ends with management's business plan.

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