TICO has issued a closure advisory and reimbursement instructions following the shutdown of Lynx Air.

The ultra low-cost airline announced on February 22 that it would be ceasing operations on Monday, Feb. 26 at 12:01 a.m. MT, citing financial pressures associated with “inflation, fuel costs, exchange rates, cost of capital, regulatory costs and competitive tension in the Canadian market” as the main contributing factors.

TICO is in the process of obtaining additional information from the Receiver appointed under the Companies’ Creditors Arrangement Act (CCAA) process for Lynx Air. “As soon as we have additional information, it will be shared on TICO’s website, including potential eligibility for claims under the Ontario Travel Industry Compensation Fund,” reads the advisory.

TICO is, however, sharing some information at this time with respect to general eligibility provisions of the Fund:

Airfare purchased directly from Lynx Air or through a travel agency/booking website outside of Ontario is NOT eligible for reimbursement through the Compensation Fund.

Affected passengers should note the Compensation Fund does not reimburse consumers for the cost of replacement travel services purchased.

Consumers who booked with a TICO registered travel agency or website and who have tickets for Lynx flights that are still scheduled to operate:

• The Compensation Fund does not cover travel services that are available to be received. 
• Travel services that are available to be used until February 26 will not be eligible for possible future reimbursement under the Compensation Fund.

Consumers who booked with a TICO-registered travel agency or website and who are in transit / in destination with their return Lynx flight cancelled:

• The Compensation Fund does not allow for trip completion claims as a result of an end supplier failure (e.g., airline). 
• Consumers will have to make their own arrangements to return home and TICO recommends they contact a travel agent for assistance. 
• TICO will provide additional information as soon as possible for consumers who purchased their Lynx Air travel services through a TICO-registered travel agency or website and did not receive their services.

Consumers who booked with a TICO registered travel agency or website and have future travel bookings with Lynx Air (beyond February 26, 2024):

• More information about potential claims against the Compensation Fund will be provided once TICO has additional details from the Receiver. 
• In the meantime, affected consumers can contact their credit card company and travel insurance provider, if applicable, to seek refunds. These steps will be required should the claims process open for Lynx Air against the Compensation Fund. 
• If the credit card or travel insurance company denies a consumer’s refund, they should seek a letter from them confirming that a refund will not be provided.

Consumers who purchased Lynx Air travel services from a travel agency located outside of Ontario OR directly from Lynx Air:
 

• Unfortunately, there is no provision under Ontario Regulation 26/05 of the Travel Industry Act, 2002 for a consumer to claim on the Compensation Fund when they purchased travel services from a travel agency outside of Ontario or directly from the end supplier. They may wish to contact their credit card or travel insurance company for potential reimbursement options.

Consumers who have a future travel credit/voucher issued by Lynx Air that has not been redeemed: 
 

• Unredeemed future travel credits, vouchers or similar documents issued by an airline for future travel are not eligible for reimbursement from the Compensation Fund. They may wish to contact their credit card company about a refund or wait to see if further instructions will be provided by the Receiver involved.

For more information contact TICO at 1-888-451-8426 or (905) 624-6241 or tico@tico.ca.

Source: Travelweek