A Lynx Air Boeing 737 jet sits at a gate at the international airport in Calgary on Friday, February 23, 2024. Officials with the Calgary-based company announced Thursday evening that it is ceasing operations, effective at 12:01 a.m. MT on Feb. 26, 2024, after filing for creditor protection. THE CANADIAN PRESS/Todd Koroleven after their tentative merger fell through when Lynx shut down last month.
The court-supervised asset sale currently before the judge - who must approve the process - could lead to a “highly anti-competitive result” if large airlines are allowed to bid while Flair is locked out, according to an affidavit from Jones. Some observers question whether Flair has the financial stability to mount a serious bid, especially as consumers' travel appetite levels off amid higher interest rates and inflation.
The market lease rate of a new 737 Max 8 has increased to more than $540,000 per month from roughly $350,000 per month four years ago, according to consulting firm IBA. In response, Flair launched a $50-million court action against Airborne and three other leasing firms, arguing that ongoing demands for payment from the four companies were “baseless.”
The sudden halt to Lynx's growth - it had planned to fly 17 aircraft by year's end versus a handful in 2022 - means one less rival for Flair as well as bigger competitors, including Air Canada.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CBCCalgary - 🏆 78. / 51 Read more »
Source: CBCAlerts - 🏆 37. / 63 Read more »
Source: GlobalCalgary - 🏆 50. / 61 Read more »