Why is Lynx Airlines Ceasing Operations?

Lynx Airlines, a Calgary-based airline that commenced operations less than two years ago, announced today its decision to cease operations effective Monday. This decision comes as the company faces significant challenges, including escalating operating costs, fuel prices, exchange rates, and regulatory hurdles.

In a statement released today, Lynx Air cited these challenges as insurmountable despite efforts to enhance operational efficiency, reduce costs, and explore strategic alternatives such as a sale or merger. The company expressed regret for the inconvenience caused to passengers and assured them that flights will continue until the cessation of operations at 12:01 a.m. MT on Monday.

Legal counsel from Osler, Hoskin & Harcourt LLP is supporting Lynx Air through the process, with FTI Consulting Canada Inc. appointed as the monitor under the Companies’ Creditors Arrangement Act.

What Support is Offered to Lynx Air Employees?

A spokesperson for Lynx Air highlighted the financial pressures that led to this decision, emphasizing the company’s commitment to assisting passengers currently in transit. Passengers with existing bookings are advised to contact their credit card companies for refunds and to visit the company’s website for further information.

The Canadian Union of Public Employees (CUPE), representing Lynx Air’s flight attendants, expressed solidarity with affected employees and pledged to advocate for their rights during this challenging period.

Deborah Yedlin, President and CEO of the Calgary Chamber of Commerce, offered insights into the broader industry challenges, highlighting the complexities of airport fees and economic headwinds faced by discount airlines.

The discontinuation of Lynx Air’s operations marks a significant development in the Canadian aviation landscape. As the airline industry grapples with evolving dynamics, stakeholders continue to assess strategies to ensure the sustainability of air travel affordability for Canadian consumers.

How can Whitten & Lublin help?

If you or someone you know is dealing with a bankrupt employer, it is important to speak with an experienced employment lawyer to understand your workplace rights. The employment lawyers at Whitten & Lublin can help you navigate your legal options regarding your specific circumstances. If you are looking for employment lawyers and would like more information about what Whitten & Lublin can do for you, please contact us online or by phone at (416) 640-2667.