Recently, reports of a potential merger between Canadian ultra-low-cost carriers Flair Airlines and Lynx Air have emerged online, first in The Airline Observer, and later in major news outlets.

While there have been no official announcements from either airline, the Toronto Star reports that industry sources have confirmed that the two airlines are in discussions of a merger, and a potential deal could be announced in the very near future.

If a merger is indeed imminent, it’d become the latest shakeup in the Canadian market, which has seen a lot of airline consolidation in the past few years alone.

Flair Airlines and Lynx Air Reportedly in Merger Talks

According to reports, Flair Airlines and Lynx Air are in advanced merger talks. Neither airline has publicly confirmed or denied the merger, although it’s reported that official details may emerge as soon as Thursday, February 15, 2024.

If confirmed, Flair Airlines would absorb Lynx Air, and the two Alberta-based airlines would become one. Flair Airlines is based out of Edmonton, while Lynx Air is headquartered in Calgary.

Flair Airlines has been operating under its current moniker since 2017, after it previously flew as Flair Air. Lynx Air launched flights under its current name in 2022, after flying as Enerjet in years prior.

As it stands, Flair Airlines currently has a fleet of 20 aircraft, while Lynx Air’s fleet is made up of nine.

The majority of Lynx’s routes operate out of Calgary (YYC) and Toronto Pearson (YYZ), with a handful of routes from Montreal (YUL) and Vancouver (YVR). The majority of the ultra-low-cost carrier’s routes are domestic and transborder, with a single route to Cancun from Toronto.

Meanwhile, Flair Airlines offers multiple direct flights from Edmonton (YEG), Vancouver (YVR), Calgary (YYC), Winnipeg (YWG), Toronto Pearson (YYZ), Montreal (YUL), and Ottawa (YOW), as well as from smaller airports such as Abbotsford (YXX), Kitchener/Waterloo (YKF), London (YXU), to destinations across Canada, the United States, Mexico, and the Caribbean.

Recently, Flair Airlines has had to delay its fleet expansion plans, due to both manufacturing issues at Boeing and reports of an unpaid tax bill related to the delivery of its existing fleet.

These issues followed the seizure of four of Flair’s aircraft in March 2022, due to Flair allegedly falling behind on lease payments.

This is a developing story, and we’ll update this article as new details emerge.

The Latest Shakeup in Canadian Aviation?

If Flair Airlines and Lynx Air are indeed on the brink of a merger, it’d become the latest in a spate of recent consolidations in Canadian aviation.

In 2023, WestJet announced that it would integrate its then ultra-low-cost subsidiary Swoop into its mainline fleet.

That integration was completed in late 2023, and the former Swoop aircraft are now operating flights primarily from Toronto Pearson (YYZ) to Deer Lake (YDF), Charlottetown (YYG), Moncton (YQM), and Victoria (YYJ).

Meanwhile, WestJet also acquired Sunwing Airlines in 2023, and it’s in the process of integrating Sunwing into its mainline fleet. WestJet expects to complete that process by October 2024, at which point Sunwing Airlines will no longer be in operation.

If Lynx Air becomes the latest independent airline to exit the Canadian market, it’ll be the third to succumb to the challenging Canadian market in a short amount of time.

Flair Airlines and Canada Jetlines would then be the two remaining ultra-low-cost carriers available in the Canadian market.

For its part, Canada Jetlines recently announced service from Toronto Pearson (YYZ) to Halifax (YHZ), and from Halifax (YHZ) to Orlando (MCO).

Otherwise, the airline doesn’t operate any other domestic flights, after terminating previously announced service to Calgary (YYC) and Vancouver (YVR).

Presently, it has scheduled flights from Toronto Pearson (YYZ) to Las Vegas (LAS), Cancun (CUN), Montego Bay (MBJ), and Orlando (MCO), and also operates a number of charter services with its modest fleet of three aircraft, which it plans to grow in the coming years.

With the Flair Airlines and Lynx Air merger, there’d be less competition between ultra-low-cost carriers on domestic flights, leaving mainline carriers to compete with lower prices offered by Flair Airlines.

However, in Canada, ultra-low-cost carriers face unique challenges, with a relatively small population size condensed in a few major centres, high airport and government-imposed taxes and fees, and seasonal destination preferences.

Conclusion

Various outlets are reporting that that Flair Airlines and Lynx Air are in merger talks. Neither airline has confirmed or denied the merger; however, it’s expected that an official announcement is imminent.

If confirmed, Lynx Air would be absorbed by Flair Airlines, and the former would become the latest airline to succumb to consolidation in Canada.

We’ll update this article as more details about this potential merger are released.