The operating entities behind five Canadian airports are claiming almost CAD4.1 million Canadian dollars (USD2.98 million) in unpaid airport improvement fees from bankrupt Lynx Air (Calgary).
Edmonton Regional Airports Authority, Halifax International Airports Authority, the Calgary Airport Authority, Vancouver Airport Authority and Winnipeg Airports Authority Inc lodged documents with the Court of King's Bench of Alberta late last month seeking orders that the monies owed are subject to either an express, implied, or constructive trust, and an instruction to Lynx to release the amounts owed.
Specifically, Edmonton Regional Airports Authority is owed CAD355,640.79 (USD258,851); Halifax International Airports Authority is owed CAD319,435.80 (USD232,500); the Calgary Airport Authority is owed CAD2,031,140.16 (USD1,478,355); the Winnipeg Airports Authority Inc is owed CAD282,895 (USD205,904); and Vancouver Airport Authority is owed CAD1,110,231.54 (USD808,076).
The claims specifically concern airport improvement fees. Edmonton Regional Airports Authority charged Lynx CAD35 (USD25.5) per passenger at Edmonton International. Halifax International Airports Authority billed Lynx CAD22 (USD16) per intraprovincial passenger and CAD35 (USD25.5) per interprovincial and international passenger at Halifax. Winnipeg Airports Authority Inc invoiced Lynx CAD38 (USD27.70) per passenger at Winnipeg International. The Calgary Airport Authority charged Lynx CAD35 (USD25.5) per passenger at Calgary, and Vancouver Airport Authority billed Lynx CAD5.00 (USD3.60) per passenger flying within British Columbia or the Yukon and CAD25.00 (USD18.2) per passenger flying to all other destinations.
A signed memorandum of agreement concerning the airport improvement fees says Lynx acts as an agent collecting the fees and only has the funds because of this relationship. "Failing to remit them to the airport authorities constitutes a breach of its equitable obligations," the filing reads. "Failing to grant the constructive trust remedy in this situation would result in the unjust enrichment of Lynx’s creditors at the airport authorities’ expense... it would be unjust if Lynx’s creditors were to receive a windfall by gaining access to the airport improvement fee funds."
Lynx filed for bankruptcy protection in late February 2024, ending a period of intense speculation about its future. Shortly after, the first court filings from the administrator indicated Lynx was carrying around CAD206 million (USD150 million) in debts. These latest claims come on top of that.
Separately, May court filings also reveal Lynx wants permission to sells parts and inventory to raise cash. A US entity wants to buy Lynx's inventory of B737 MAX Collins and Safran wheels and brakes and related documentation. BOC Aviation is looking to buy equipment installed or due to be installed on aircraft scheduled to be delivered in 2024. In their application to the court, Lynx's administrator said the deals represent the highest and best price that can be obtained for the assets. The court approved both applications.