Canadian budget airline Lynx Air has filed for court protection from creditors and will cease operations on Feb. 26, it said on Thursday, as it struggles with rising operating costs, high fuel prices and increasing airport charges.
Despite substantial growth in the business, cost reductions and efforts to explore a sale or merger, the challenges facing the business have become “too significant to overcome”, the company said.
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The Calgary-based airline, which launched its inaugural flight in April 2022, said flights will continue to operate until 12:01 a.m. on Feb. 26.
Lynx will seek protection under the Companies’ Creditors Arrangement Act, a Canadian Federal Act that allows large corporations to restructure their finances and avoid bankruptcy, while allowing creditors to receive some form of payment for amounts owed to them.
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