Lynx Air shutdown: TICO posts Comp. Fund guidance for Ontario customers

The Travel Industry Council of Ontario (TICO) has posted guidance for Ontario-based consumers who are impacted by the sudden shutdown of Lynx Air, a decision that was announced Thursday (Feb. 22).

Lynx will end its operations on Monday, Feb. 26 at 12:01 a.m. MT on Mon., Feb. 26, 2024, the airline said. 

In a news release Friday (Feb. 23), TICO said it is still obtaining additional information from the Receiver appointed under the Companies’ Creditors Arrangement Act (CCAA) process for Lynx. 

READ MORE: From “not surprised” to a “significant blow”: Agents, execs sound off on Lynx shutdown

As soon as TICO has additional information, it will be shared on TICO’s website, including potential eligibility for claims under the Ontario Travel Industry Compensation Fund (Compensation Fund).

Compensation Fund details

Here's what TICO is sharing at this time with respect to eligibility provisions of the Compensation 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 Feb. 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 your refund, please seek a letter from them confirming that a refund will not be provided," TICO says. 

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

• 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. 

"You may wish to contact your credit card or travel insurance company for potential reimbursement options," TICO says.

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. "You may wish to contact your credit card company about a refund or wait to see if further instructions will be provided by the Receiver involved," TICO says.

Consumers can contact TICO at 1-888-451-8426 or (905) 624-6241 or tico@tico.ca. 

Passengers with existing bookings are being advised by Lynx to contact their credit card company to secure refunds for pre-booked travel. Lynx has posted an FAQ for customers here.

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