Lynx Air, a Calgary-based airline that launched less than two years ago, says it will cease operations on Monday.
The news came as the low-cost airline announced it had sought and obtained an initial order for creditor protection from the Court of King’s Bench of Alberta.
“Over the past year, Lynx Air, has faced a number of significant headwinds including rising operating costs, high fuel prices, exchange rates, increasing airport charges and a difficult economic and regulatory environment,” said the company in a news release.
“Despite substantial growth in the business, ongoing operational improvements, cost reductions and efforts to explore a sale or merger, the challenges facing the company’s business have become too significant to overcome.”
The airline said it has made the decision to cease operations as of 12:01 a.m. MT on Monday, “with flights continuing to operate until that time.”
The company said passengers with existing bookings are advised to contact their credit card company to secure refunds for pre-booked travel. It also directed customers to its website.
Osler, Hoskin & Harcourt LLP are acting as legal advisors to Lynx Air. FTI Consulting Canada Inc. was appointed as the monitor under Companies’ Creditors Arrangement Act.
More to come …