Flair CEO hopes to bid on Lynx planes after shutdown scuttles merger
Flair Airlines Ltd.'s chief executive Stephen Jones says he still hopes to add several Lynx Air planes to his fleet, even after the airlines' tentative merger fell through when Lynx shut down last month.
In a phone interview, Jones said the Boeing 737 Max 8 planes are the same model that comprise the bulk of his 20-plane fleet and would bolster the discount airline's stalled growth plans.
“We would love to get access to those aircraft — not all of them, but we'd love to get access to some at least,” he said.
“We're very interested in an open process.”
In an Edmonton court filing, Flair's chief executive sought to have Lynx include it among those allowed to bid on the insolvent airline's assets.
The court-supervised asset sale currently before the judge — who must approve the process — could lead to a “highly anti-competitive result” if large airlines are allowed to bid while Flair is locked out, according to an affidavit from Jones.
Any process that gives Lynx the final say — which selects the “pre-qualified bidders” — over who can submit offers “unfairly prejudice” the sole remaining budget carrier in the Canadian market, the document argues.
Court filings state that Lynx has $345 million in property and equipment, with nine leased planes counted as assets, alongside $355 million in long-term lease liabilities.
Some observers question whether Flair has the financial stability to mount a serious bid, especially as consumers' travel appetite levels off amid higher interest rates and inflation.
“As much as Jones has got a lot of bravado that he's showing, he hasn't got the financials to support it,” said John Gradek, a lecturer at McGill University's aviation management program.
The cost of any planes transferred to a new lessor may be higher than those enjoyed by Lynx, which ordered 46 of them when prices were low during the COVID -19 pandemic.
The market lease rate of a new 737 Max 8 has increased to more than $540,000 per month from roughly $350,000 per month four years ago, according to consulting firm IBA.