Defunct Lynx Air blames contractor
Passenger refunds delayed
THE CHARGEBACK PROCESS IS EXPENSIVE, AND THIS WILL THEREFORE RESULT IN SIGNIFICANT CHARGEBACK FEES TO THE APPLICANTS — LYNX — TO THE DETRIMENT OF THEIR STAKEHOLDERS. — LYNX AIR COURT FILING
A contractor bears the blame for delayed refunds to Lynx Air customers, the insolvent airline says, adding that the hold-up will also hurt company stakeholders.
Lynx, which ceased operations and filed for creditor protection in late February, said in court filings the firm hired to handle bookings, Texas-based Sabre Corp., has hampered reimbursements.
The ultra-low-cost carrier said it had planned to carry out refunds directly, “without the need for customers to contact their credit card providers to submit chargebacks.”
“Unfortunately, Sabre Corp . ... has refused to assist with customer refunds,” according to an affidavit from Lynx’s interim chief financial officer and filed with the Alberta Court of King’s Bench.
That leaves the airline no choice but to work with its credit card processor to deal with chargebacks for travellers whose flights were cancelled, the filings state.
While customers wait to have their purchases refunded, the company’s investors may also have a harder time recouping their own cash from Lynx.
“The chargeback process is expensive, and this will therefore result in significant chargeback fees to the applicants” — Lynx — “to the detriment of their stakeholders,” the carrier stated.
Sabre Corp., a travel technology firm with clients in more than 160 countries, declined to respond to questions. “As a matter of policy, we don’t comment on our customer agreements nor do we comment on legal proceedings,” said spokeswoman Heidi Castle.
The deadline for customers to submit chargeback requests is Sept. 1, 2025, court documents say.
The shutdown of Calgary-based Lynx comes as the budget airlines that have cropped up in recent years face ongoing financial pressures — if they’ve survived at all. The tough market stems partly from industry consolidation and fallout from the travel sector implosion during the COVID-19 pandemic.
In October, Westjet Airlines closed its discount Swoop. It also plans to wind down Sunwing Airlines and integrate the low-cost carrier into its mainline business by this coming October after buying the firm last May.
Flair Airlines has also confronted financial turbulence. 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.
In court filings earlier this year, Lynx said it owed $124.3 million to a division of Indigo Partners, the U.S. private equity firm that owns one-quarter of the carrier.
Fresh filings show Lynx has asked a judge to allow repayment of up to $94 million of that debt. Seeking to assuage concerns from other investors, Lynx said the move would be “to the benefit of all stakeholders generally” due to the lower interest that would accrue.