An Alberta judge has approved an agreement between defunct Lynx Air (Calgary) and Boeing to scrap a B737 MAX purchase contract. Jane Sidnell, a judge sitting on the King's Bench of Alberta Court in Calgary, agreed to allow the parties to terminate purchase agreement no. 04427 and authorised a mutual release on April 2.

In the termination agreement, dated March 21 and seen by ch-aviation, Lynx Air and Boeing said they wished to close the order signed in October 2015 (and amended in 2018) to acquire forty aircraft, originally a mix of B737-8 and B737-8-200 types, along with a further six aircraft to be acquired via leasing terms.

Lynx Air Holdings Corporation, doing business as Lynx Air, ended operations on February 26, 2024, and filed for creditor protection. It had taken delivery of nine B737-8s from the order, all on lease terms, with 37 undelivered. The original purchase contract required payments 24, 18, 12, and 10 months before delivery.

According to a March 25 affidavit by Michael Woodward, interim contractor CFO at Lynx Air, as part of the sale and investment solicitation process to dispose of Lynx's assets there was a plan to sell the airline's right, title, and interests in the MAX purchase agreement. However, Lynx ultimately decided it would be "exceedingly difficult or impossible" to sell the agreement while maximising value for the airline. Boeing also had concerns about protecting its commercial interests. They concluded that axing the deal was the best option.

"On March 21, 2024, the Applicants and Boeing entered into the termination agreement, setting out the terms of the agreed-upon settlement to terminate the Boeing purchase agreement in exchange for payment by Boeing of an agreed [undisclosed] amount of compensation," the termination reads, adding that the terms and "the amount of compensation to be paid to the Applicants by Boeing was considered to be satisfactory to the Applicants, the Monitor, and [Lynx's senior creditor and interim lender] Indigo Northern Ventures LP."

The nine B737-8s Lynx had already taken delivery of are:

The termination agreement notes that Lynx has either assigned or transferred the purchase rights, or generated a lien, charge, security interest or other encumbrance against C-GJSL, C-FULH, and C-FULI. The remaining six aircraft are unencumbered.

Lynx's creditor protection period currently extends to April 15.