Flair Airlines CEO looks to bid on Lynx planes after shutdown halts tentative merger
CBC
Flair Airlines chief executive Stephen Jones says he still hopes to add several Lynx Air planes to his fleet, even after their tentative merger fell through when Lynx shut down last month.
In a phone interview, Jones said the Boeing 737 Max 8s are the same model that comprise the bulk of his 20-plane fleet and would bolster the discount airline's stalled growth plans.
"We would love to get access to those aircraft — not all of them, but we'd love to get access to some at least," he said.
"We're very interested in an open process."
In an Edmonton court filing, Flair's chief executive sought to have Lynx include it among those allowed to bid on the insolvent airline's assets.
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.
Any process that gives Lynx the final say — which selects the "pre-qualified bidders" — over who can submit offers "unfairly prejudice" the sole remaining budget carrier in the Canadian market, the document argues.
Court filings state that Lynx has $345 million in property and equipment, with nine leased planes counted as assets, alongside $355 million in long-term lease liabilities.
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.
"As much as Jones has got a lot of bravado that he's showing, he hasn't got the financials to support it," said John Gradek, a lecturer at McGill University's aviation management program.
The cost of any planes transferred to a new lessor may be higher than those enjoyed by Lynx, which ordered 46 of them when prices were low during the COVID-19 pandemic.
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.
As of November, Flair owed the federal government $67.2 million in unpaid taxes related to import duties on the 20 Boeing jets that make up Flair's fleet.
Last March, the Edmonton-based company saw four of its planes repossessed in the middle of the night after aircraft leasing manager Airborne Capital claimed the company regularly missed rent payments that amounted to millions of dollars over the preceding five months.
Experts are constantly warning the public to be on guard for new and increasingly convincing scams, but police say the holiday shopping season is especially fraught with risk.
A surgeon who used to work at Flin Flon's hospital says residents in the northwestern Manitoba city have been left in a precarious situation after more than five years without general surgery services.
Moubarak Bokhit Ali's memories of his home country of Sudan are punctuated by flashes of violence.
The man behind the Moose Jaw health centre that has claimed “a 100 per cent success rate in stopping the progression and in restoring function of people with ALS” says a recent CBC story about his company is evidence that he is seen as “a direct threat to the ALS drug industry.”
The Neighbour to Neighbour Centre’s trans and non-binary grocery program, which offers free food and household products to community members once a month, began with a simple question: how do we get free menstrual products to trans people without being awkward?
Bill Van Vugt is living a life that's unlike most other people his age, and one which has seen him turn a longtime hobby into championship gold.
The provincial government is taking steps toward improving Alberta's lucrative sand and gravel industry.
As medical labs across Ontario remain understaffed, one medical association is calling on the province to expand labs’ capacity for student placements by funding positions to train them.
The year wrapping up means it's getting closer to tax season, and the federal Community Volunteer Income Tax Program will once again be offering free filing services for Islanders with modest incomes.
It's not so easy to remove a politician from office between elections in Canada.
Natasha Martin-Mitchell says creating art gives her a sense of calmness that acts as a medicine during stressful times.
Gabriel Vilardi scored twice and star goaltender Connor Hellebuyck made 24 saves in his first game back from injury to power the Jets to a 5-1 victory over the Washington Capitals on Saturday that snapped Winnipeg's three-game losing skid.
Alberta’s auditor general Doug Wylie says his office's budget will be $1.5 million short next fiscal year.