Achi news desk-
Lynx Air is hoping to sell everything from life jackets to oxygen masks as it tries to recoup some of the losses it suffered before filing for creditor protection earlier this year.
In a court filing last week, the defunct discount carrier said it had worked out deals with a pair of foreign airlines to sell aircraft parts and equipment ranging from seats to tires and transponders.
Any hope of a profit on the airline’s own nine planes was dashed after the half-dozen leasing companies behind them canceled their deals and repossessed the planes, according to an affidavit from interim chief financial officer Michael Woodward.
The filing asks the Alberta Court of King’s Bench to approve deals that would see New Hampshire-based Aero 3 repair company buy more than 50 wheels and brakes and Cayman Islands-based leasing company BOC Aviation take 79 other items, from food carts to a garbage one. can.
Lynx, which was $186 million in debt when it sought creditor protection in late February, says a third company has “unexpectedly terminated negotiations” over four turbofan jet engines.
The closure of the Calgary-based carrier came three months ago as budget airlines that have risen in recent years face continued financial pressures, if they survive at all, amid industry consolidation and fallout from the travel sector’s internalisation of the COVID-19 pandemic.
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In October, WestJet closed its discount airline subsidiary Swoop.
It also plans to spin off Sunwing Airlines and integrate the low-cost carrier into its core business by the end of April after buying the Toronto-based company last May.
WestJet Airlines delaying integration of Sunwing Airlines to 2025
Ultra low cost Flair Airlines has also faced financial turmoil over the past 18 months.
As of November, it owed the federal government $67.2 million in unpaid taxes related to import duties on the 20 Boeing jets that make up its fleet.
As of February 22, Lynx owed $124.3 million to Indigo Partners, the US private equity firm run by Bill Franke that owns a quarter of the carrier.
Lynx also owed $47.8 million to various trade creditors and $25.6 million in unpaid taxes to the federal government, according to court documents.
He owed another $4.1 million to the Toronto and Montreal airports and $4.5 million to Delta Air Lines for aircraft and warehouse maintenance.
& copy 2024 The Canadian Press
