In early February 2024, Lynx Air aimed to settle its $124.3 million debt to major investor Indigo Partners through a planned acquisition by rival Flair Airlines, according to court documents filed with Alberta’s Court of King’s Bench. The tentative deal was part of a broader strategy to address Lynx’s financial struggles, including $600 million in liabilities versus $429 million in assets, primarily nine leased Boeing 737 Max 8 jets.

As of its filing for creditor protection, Lynx owed $25.6 million in unpaid taxes to the federal government and $47.8 million to various trade creditors. The acquisition by Flair, outlined in a non-binding agreement signed on January 11, 2024, was intended to mitigate some of these debts. However, both Lynx and Flair were financially strained, raising doubts about the feasibility of the deal.

Lynx sought protection under the Companies' Creditors Arrangement Act, which allows for the restructuring of debts. Osler, Hoskin & Harcourt LLP acted as legal advisors to Lynx Air, while Bennett Jones advised Flair Airlines.