Lynx Air’s interim chief financial officer informed a Canadian court that the US based GDS Sabre Corporation, responsible for handling the airline’s bookings, is not cooperating in processing passenger refunds, impacting creditors’ ability to recover funds.
The airline intended to directly issue customer refunds without requiring credit card chargebacks, but Sabre Corporation’s refusal has forced Lynx Air to work with their credit card processor, Elevon Canada Company, to process chargebacks, incurring significant fees detrimental to stakeholders.
Lynx Air ceased operations in late February and declared bankruptcy protection shortly after, citing challenges such as rising jet fuel prices, reduced passenger demand due to Covid-19, and the 2019 grounding of the Boeing 737 MAX affecting its revenue generation.
It was revealed that Lynx Air owed approximately CAD124.3 million (USD90 million) to its 25pc shareholder Indigo Partners, highlighting financial pressures contributing to the airline’s insolvency.
