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The Canadian ultra-low-cost carrier Lynx Air has announced that it will cease operations on February 26, 2024. While the news has been out for a few days, many questions on passenger rights are unanswered or impossible to answer from Lynx Air’s official FAQ webpage. In this post, we would like to provide some unofficial guidance regarding luggage issues and flight cancellations.
What happens if you’re supposed to receive compensation from Lynx Air?
Typically, you could submit a claim to the airline or the Canadian Transportation Agency (CTA) to request reimbursement for expenses incurred when our bags did not make it to the destination with us. Passengers should be able to receive compensation after the CTA’s tribunal decision. Now, passengers are in a complicated situation because even if the CTA rules in the passenger’s favour, a company will not be able to fulfill the request from the CTA.
A CTA official who would like to remain anonymous confirmed that there are no directives on how they will be able to ensure Lynx provides the compensation after a tribunal decision is made in favour of the passenger. As for now, even if you receive a favourable ruling from the CTA against Lynx Air, you will become one of the creditors of the bankrupt company and will be placed on a list along with other creditors. We do not know if the passengers would have any priority over other creditors, but the chance for you to receive your compensation is slim.
Therefore, I suggest purchasing the items you need if you plan to make a claim based on the Montreal Convention or the Air Passenger Protection Regulation against Lynx Air. This notion also applies to passengers who have had their flights delayed or cancelled.
What can you do to mitigate loss during Lynx Air’s bankruptcy?
It may be too late for many passengers, but I certainly hope the readers of this site already have ways to protect themselves in situations like this. First, I suggest reviewing the credit card insurance policy you used to purchase the Lynx Air flight tickets. Lynx Air has also asked that passengers seek refunds from the credit issuers since your credit card travel insurance should cover you for any applicable travel disruptions. For example, if your flight is cancelled, you will get a credit from your credit card issuer because the service you purchased from Lynx Air was not provided. At the same time, if your credit card has travel insurance for flight cancellation, you may have coverage of $500 – $5000 for you to buy an expensive last-minute flight ticket to go home.
Second, check if you have any insurance that may cover your trip disruptions. For example, my Tugo policy will cover flight-related disruptions regardless of the payment method and carrier. So, if you have any insurance policies, please double-check them.
Lastly, I have never flown with Lynx Air but have heard many positive comments about them. When I travel in Canada, I only book those airlines defined as Large by the CTA because they have more obligations and responsibilities than Small airlines. In short, the large airlines must compensate you more if any applicable disruptions occur.
In conclusion, I hope all the passengers can minimize the impact of Lynx Air’s cessation of operations and find alternative means to return home safely.
Related Reading: Air Canada approved my compensation claim in 24 hours!
Title Image Credit: Lynx Air
