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DALLAS — After ceasing operations in February, Canadian ultra-low-cost operator Lynx Air (Y9) has finalized an agreement with Boeing, canceling a substantial aircraft purchase contract.
The two sides reached a joint deal on Thursday, March 21, 2024. Court documents filed in Alberta reveal that following Y9's cessation of services, the airline had taken delivery of nine aircraft, specifically Boeing 737-8. Overall, Y9 was anticipating the arrival of 31 more aircraft.
The court filing states that the termination agreement is deemed "fair and reasonable," including a payment from Boeing that is considered "satisfactory" by both Y9 and senior creditor Indigo Northern Ventures. The filing further states that this arrangement will facilitate a "more cost-efficient wind-down" of the airline.
The initial agreement, established in October 2015, included the procurement of 40 aircraft along with the leasing of six additional units. In March, Y9 proposed a sale and investment solicitation, which was then granted court approval. The primary aim was to liquidate the airline's remaining valuable assets, including the rights tied to the Boeing aircraft agreement.
The end of Lynx Air
On Sunday, February 25, 2024, Lynx Air halted its operations after filing for creditor protection under a GCAA filing. Jim Sullivan, the airline's former interim CEO, explained that the financial strain caused by inflation, fuel expenses, exchange rates, and regulatory costs in the Canadian market became unsustainable.
The most recent route announcements in 2024 included the route to Boston (BOS) and to San Fransisco (SFO), both flights departing from Toronto (YYZ) and using the Boeing 737-8 aircraft. The final scheduled flight of Y9 was set to depart from Calgary (YYC) bound for Phoenix (PHX) on Sunday, February 25, 2024. However, the flight was ultimately canceled.
Photo: Michal Mendyk/Airways
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