Summary
- Flair Airlines and Lynx Air are reportedly in advanced talks a few merger.
- The potential merger could further consolidate the Canadian low-cost airline sector.
- Generally, the goal of consolidation is to extend market share, reduce costs, and improve efficiency.
Canada’s airline sector might be getting ready to a brand new merger involving two low-cost carriers. Flair Airlines and Lynx Air are reportedly preparing to unveil merger plans, in accordance with multiple Canadian media outlets.
The Airline Observer, which initially reported the news on February 7, 2024, disclosed that each budget carriers are in advanced talks and that the deal might be announced inside weeks. As a part of the deal, Flair would take over Lynx Air.
Meanwhile, The Toronto Star also covered the news. In accordance with their report, three separate industry sources have confirmed that the 2 airlines are indeed in discussions a few potential merger. Nonetheless, a deal’s exact timing and structure remain to be seen.
Photo: sockagphoto | Shutterstock
Easy Flying has asked Flair Airlines and Lynx Air for comment.
Further consolidation
Airline consolidation is a worldwide trend motivated by multiple aspects, primarily focused on expanding market shares, reducing costs, increasing connectivity, and enhancing operational efficiency.
Should a merger between Flair and Lynx occur, it will further the continued trend of consolidation inside the Canadian low-cost airline sector. Lately, Westjet acquired Sunwing Airlines, with plans to integrate the airline into its mainline business by October 2024.
Latest US – Canada Route Launched By Lynx
The Canadian budget airline recently celebrated its inaugural flight to Tampa.
Founded in 2005, Calgary-based Flair Airlines began its operations in 2017. Currently, Flair Airlines has a complete of 20 Boeing 737 aircraft (18 737 MAX 8 and two 737-800) at a median age of 5.2 years, in accordance with Planespotters.net.
Just like Flair, Lynx Air is headquartered at Calgary International Airport (YYC). Formerly often called Enerjet, it underwent rebranding as Lynx Air in 2021. The inaugural flight under the Lynx Air brand occurred on April 7, 2022. In accordance with Planespotters.net, the airline currently has nine Boeing 737 MAX 8 aircraft in its fleet at a median age of two.9 years.
Photo: sockagphoto | Shutterstock.
It’s price noting that American-based 777 Partners has a 25% stake in Flair Airlines, while Indigo Partners is amongst Lynx Air’s shareholders. If confirmed, the agreement would significantly alter Flair’s trajectory.
Over the past yr, the budget carrier has encountered several challenges, including the seizure of 4 of its aircraft. Moreover, it was revealed that the airline reportedly owes over $67 million in unpaid taxes.
Canada’s Flair Airlines Reportedly Owes $67 Million In Tax
The costs stem from import duties payable on the airline’s fleet of Boeing 737 aircraft.
Relating to served destinations, each airlines share similar market outlooks as they give attention to primary Canadian and US destinations. Currently, Lynx Air operates flights to 23 destinations, including 14 inside Canada, eight within the US, and one in Mexico. Flair Airlines serves over 35 destinations spanning Canada, the US, Mexico, the Dominican Republic, and Jamaica.
What are your thoughts on this? Do you suspect this merger can be helpful for the Canadian airline sector? Tell us within the comments section below.