As rumours swirled Thursday, Flair and Lynx declined to comment on speculation of a merger, and various sources said the precise timing of any announcement was as yet unknown. However, the Toronto Star, citing three industry sources, reported that “Flair Airlines and competitor Lynx Air are in discussions about a merger, and a deal could be announced the same day.
The ultra low cost model in airlines has not had overwhelming success in Canada and despite optimistic reports from both Flair and Lynx approved, the general consensus as to long term success has been underwhelming.
The Airline Observer, an industry publication hosted on Substack newsletter platform, first reported the airlines were in “advanced merger discussions,” citing two sources.
While as yet unconfirmed, analysts predict a merger would likely result in the end of at least some ultra-low prices currently offered by Flair and Lynx.
“The price war is now over. Fares will go up, without a question. The days of Toronto to Calgary for $99 are over,” said John Gradek, a former Air Canada executive and head of McGill University’s Global Aviation Leadership Program, in an interview with the Star.
“They were chasing each other down the rabbit hole with low fares. It just wasn’t sustainable. They were barely making enough to cover fuel costs on some of those flights.”
Alternately University of Manitoba business professor Barry Prentice told the Star, “There’s been a lot of skepticism about how many airlines can be sustainable.
“But I definitely think there’s room for an ultra low-cost carrier in this market.”
This merger speculation follows a Feb. 8, 2024, press conference in which Flair CEO Stephen Jones tried yet again to dispel concerns about the airline’s long-term viability. Jones doubled down on Flair’s commitment to low-cost air travel, saying “low-cost travel is for everyone. It’s not a product for the rich and the elite. We’ve put affordable travel in the hands of all Canadians.”
The airline has also reached “an arrangement” with the Canada Revenue Agency (CRA) about its reported $67 million in unpaid federal taxes, Jones told reporters.
“The CRA repayment has zero impact on any of our operations,” he said. “We’ll be here delivering the same product we’ve been delivering successfully for years.”
Recent articles about Flair and Lynx