Description: Low-cost carrier Lynx Airlines announced it would be shutting down February 26. Lynx informed its passengers travelling on later dates that they should seek refunds through their credit card provider rather than from Lynx. The discount airline got off the ground in 2022, but it blames such forces as inflation, high fuel cost, exchange rates and airport fees for its financial problems.

Date:  February 22, 2024

Source:  cbc.ca

 Link: https://www.cbc.ca/news/canada/calgary/lynx-air-creditor-protection-airlines-canada-1.7123247

Discussion points:

1) Have you or any fellow students ever been left stranded by an airline shutdown? If so, what did you do?

2) If you were a senior financial officer, such as interim CFO Michael Woodward who is mentioned in the story, how would you explain the situation to your co-workers, your customers, and the media?

3) Secton 2.3 of Wiley’s Financial Accounting: Tools for Business Decision-Making discusses the conceptual framework for the preparation and presentation of financial statements. Which assumption mentioned in this section speaks to the current situation Lynx Air finds itself in?