Canada’s airline sector could be on the brink of a new merger involving two low-cost carriers. Flair Airlines and Lynx Air are reportedly preparing to unveil merger plans, according to multiple Canadian media outlets.
The Airline Observer, which initially reported the news on February 7, 2024, disclosed that both budget carriers are in advanced talks and that the deal could be announced within weeks. As part of the deal, Flair would take over Lynx Air.
Meanwhile, The Toronto Star also covered the news. According to their report, three separate industry sources have confirmed that the two airlines are indeed in discussions about a potential merger. However, a deal’s exact timing and structure remain to be seen.
Simple Flying has asked Flair Airlines and Lynx Air for comment.
Further consolidation
Airline consolidation is a worldwide trend motivated by multiple factors, primarily focused on expanding market shares, reducing costs, increasing connectivity, and enhancing operational efficiency.
Should a merger between Flair and Lynx occur, it would further the ongoing trend of consolidation within the Canadian low-cost airline sector. In recent years, Westjet acquired Sunwing Airlines, with plans to integrate the airline into its mainline business by October 2024.
Flair Airlines started its operations in 2017. Currently, Flair Airlines has a total of 20 Boeing 737 aircraft (18 737 MAX 8 and two 737-800) at an average age of 5.2 years, according to Planespotters.net.
Similar to Flair, Lynx Air is headquartered at Calgary International Airport (YYC). Formerly known as Enerjet, it underwent rebranding as Lynx Air in 2021. The inaugural flight under the Lynx Air brand occurred on April 7, 2022. According to Planespotters.net, the airline currently has nine Boeing 737 MAX 8 aircraft in its fleet at an average age of 2.9 years.
It is worth noting that American-based 777 Partners has a 25% stake in Flair Airlines, while Indigo Partners is among Lynx Air’s shareholders. If confirmed, the agreement would significantly alter Flair’s trajectory.
Over the past year, the budget carrier has encountered several challenges, including the seizure of four of its aircraft. Additionally, it was revealed that the airline reportedly owes over $67 million in unpaid taxes.
When it comes to served destinations, both airlines share similar market outlooks as they focus on primary Canadian and US destinations. Currently, Lynx Air operates flights to 23 destinations, including 14 within Canada, eight in the US, and one in Mexico. Flair Airlines serves over 35 destinations spanning Canada, the US, Mexico, the Dominican Republic, and Jamaica.