UPDATE: According to inside track publication, The Airline Observer, “Flair, an airline part-owned by Miami private equity firm 777 Partners, would absorb Lynx, which is backed by Canadian investors and Bill Franke's Indigo Partners, according to the sources. Franke has been serving as chairman of Lynx’s board.”
Lynx and Flair Merger in the Works; Deal Could Come Today
Published reports say Flair and Lynx are talking about a merger, a move that would drastically alter the Canadian aviation landscape and solidify each carrier’s survival chances.
The Toronto Star writes three separate sources said an announcement could come as soon as today. But neither side appears to be confirming the potential merger.
The Airline Observer also said a deal could be made public soon.
“As a company policy, we refrain from commenting on rumours or speculation. Our focus remains on delivering value to our customers and stakeholders through our products and services,” airline spokesperson Gabrielle Poirier said in an email to the Star.
Lynx didn't immediately respond to requests for comment.
Flair and Lynx both occupy the ultra-low-cost airline space in Canada. Experts have been saying for months that it was likely Canada would lose an airline at some point given the growth of airlines such as Flair, Lynx and Canada Jetlines, not to mention the dramatic expansion by Porter Airlines.
“The price war is now over. Fares will go up, without a question. The days of Toronto to Calgary for $99 are over,” John Gradek, a former Air Canada executive and head of McGill University’s Global Aviation Leadership Program, told the Star.
Flair Airlines has been troubled by recent news stories that state it owes the federal government $67 million in back taxes.
Flair is based in Edmonton, while Lynx has its headquarters in Calgary. Flair has 20 planes in its fleet, while Lynx has eight.
Stay tuned for more information.
