Lynx Air hopes to dump every thing from life-jackets to oxygen masks because it tries to recoup a portion of the losses it incurred earlier than submitting for creditor safety earlier this 12 months.
In court docket filings final week, the defunct low cost provider mentioned it has labored out offers with a pair of aviation corporations overseas to promote aircraft components and gear starting from seats to tires and transponders.
The airline did not personal its fleet of 9 plane. The half-dozen leasing corporations behind them cancelled their offers and took again the planes, in keeping with an affidavit from interim chief monetary officer Michael Woodward.
The filings ask Alberta’s Courtroom of King’s Bench to approve agreements that will see New Hampshire’s Aero 3 restore firm purchase greater than 50 wheels and brakes and the Cayman Islands-based BOC Aviation leasing firm snap up 79 different objects, from meals carts to a single rubbish can.
Lynx, which owed $186 million when it sought creditor safety in late February, says a 3rd firm “unexpectedly terminated negotiations” concerning 4 turbofan jet engines.
The shutdown of the Calgary-based provider three months in the past got here as finances airways face ongoing monetary pressures — in the event that they’ve survived in any respect — amid business consolidation and fallout from the journey sector implosion through the COVID-19 pandemic.
In October, WestJet closed its low cost Swoop subsidiary. It additionally plans to wind down Sunwing Airways and combine the low-cost provider into its mainline enterprise by April 2025 after shopping for the Toronto-based firm final Could.
Extremely-low-cost Aptitude Airways has additionally confronted monetary turbulence over the previous 18 months. As of November, it owed the federal authorities $67.2 million in unpaid taxes associated to import duties on the 20 Boeing jets that make up its fleet.
As of Feb. 22, Lynx owed $124.3 million to Indigo Companions, the U.S. non-public fairness agency run by Invoice Franke that owns one-quarter of the provider.
Lynx additionally owed $47.8 million to numerous commerce collectors and $25.6 million in unpaid taxes to the federal authorities, in keeping with court docket paperwork. It owed an additional $4.1 million to the Toronto and Montreal airports and $4.5 million to Delta Air Strains for plane upkeep and warehousing.
