Lynx Air Holdings Corporation and 1263343 Alberta Inc. dba Lynx Air, CCAA

Lynx Air Holdings Corporation and 1263343 Alberta Inc. dba Lynx Air, Calgary, Alberta-based companies which operate a discount airline under the trade name “Lynx Air”, obtained CCAA protection on February 22.

The companies have been negatively impacted by: (i) significant increases in the pricing of jet fuel; (ii) sustained decreases in passenger demand as a result of COVID and its after effects; and (iii) the grounding of the Boeing Model 737-8-200 aircraft (which was the only type of aircraft purchased for Lynx Air’s fleet) in October 2018 and March of 2019. As a result of these issues, Lynx Air did not have its inaugural flight until April 7, 2022 (roughly 3 years after the originally planned inaugural flight date). It is currently insolvent and unable to fund its ongoing operations.

In addition, certain critical service suppliers, including the Aeroports de Montreal, the Greater Toronto Airports Authority, and Delta have recently elected to take enforcement actions against the companies.

The purpose of the CCAA proceedings is to stabilize operations and allow the companies to conclude a transaction that will allow an orderly wind down of operations while simultaneously maximizing the value of their assets.

FTI is the monitor.

Counsel is Osler for Lynx Air, Norton Rose Fulbright for the monitor and Blakes for Indigo Northern Ventures LP (the DIP lender and senior secured creditor).

By: Dina Milivojevic