Context:

• The case involves multiple airport authorities (Edmonton, Halifax, Calgary, Vancouver, Winnipeg) as applicants and Lynx Air Holdings Corporation as the respondent.

• The dispute arises over the collection and remittance of airport improvement fees (AIFs), which Lynx Air collects from passengers and is obligated to remit to the airports under a long-standing Memorandum of Agreement.

Key Facts:

• Lynx Air was $4 million in arrears on its AIF remittances when it sought insolvency protection under the Companies' Creditors Arrangement Act (CCAA) in February 2024.
• The applicants sought a declaration that the unpaid fees were subject to an express, implied, or constructive trust. This was rejected by a lower court, except for a related case involving Greater Toronto Airports Authority.

Appeal Details:

• The applicants requested permission to appeal based on:
  1. Alleged errors in interpreting the Memorandum of Agreement.
  2. The court's refusal to impose a constructive trust over the fees.

Decision:

• Justice Fagnan granted permission to appeal, citing:
  • Significance of the Memorandum of Agreement to industry practices.
  • Financial and precedential importance of the issue.
  • Meritorious (non-frivolous) grounds for appeal.
  • Lack of undue delay to the liquidation process, as funds are held in trust and unrelated matters remain pending.
  • The document does not specify any monetary awards, costs, or damages granted at this stage.