Impact of Lynx Air ceasing operations
With Calgary-based Lynx Air closing, and flights from the finances airline not an possibility for travellers after Feb. 26, what sort of influence will this have on clients?
The airline began taking to the skies simply a few years in the past, however their mannequin to supply “no-frills” flights at extra inexpensive charges couldn’t stand the check of time within the Canadian market – citing rising prices, excessive gas costs, and the troublesome financial and regulatory setting as elements for his or her closure.
“It’s hard for any airline to succeed in Canada. There is just not enough people and the land mass that we cover is just too big,” mentioned Concordia University economist Moshe Lander.
He says that costs are going to go up for Canadian shoppers with the closure of Lynx, not simply due to one much less supplier however for travellers who’re left rebooking cancelled Lynx flights.
“But you’re one less week, one less month closer to your travel date for sure then it is going to cost more money and of course, this is going to upset Canadian passengers and the government is going to shrug and say ‘C’est la vie, there is nothing that we can do about it,’” he mentioned.
“I’m concerned that this may mean higher prices.”
The firm mentioned those that have been planning to board flights on Monday and onward should contact their bank card firm to acquire a refund.
“Please note: Lynx Air’s contact centre will not be available to assist with refunds,” it mentioned on its web site.
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Gabor Lukacs, president of the Air Passenger Rights advocacy group, says the principle query that must be requested in Lynx Air’s closing is what will occur with passengers who’re owed cash from the airline.
“What I would like to see going forward is a legislation that puts passengers at the front of the line in airline bankruptcies in respect to compensation, reparation costs and so on,” he instructed CityNews.
“Because then the financial institutions would be the ones that would actually call out if something goes wrong and possibly pull the plug early, they would actually put steps in place to ensure that their money is protected and therefore the passengers’ money is protected.”
And as for the way forward for airline carriers in Canada, Lander says if the Canadian authorities eased up its laws permitting worldwide airways to fly domestically, it might create competitors.
“It’s still not going to solve the problem though of the unprofitable short-haul flights,” he mentioned. “Who’s going to want to fly to Saskatoon? Who’s going to want to pick people up in Fredericton and take them to Quebec City?”
But at the very least it might deal with among the issues that exist on among the main long-haul routes and create decrease costs in order that even in the event you needed to pay increased costs on a few of these short-haul routes, you’ll nonetheless discover value financial savings for the buyer.”
