Lynx Air says passenger refunds will hurt investors because of defiant contractor

A contractor bears the blame for delayed refunds to Lynx Air customers, the insolvent airline says, adding that the hold-up will also hurt company stakeholders. Lynx, which ceased operations and filed for creditor protection in late February, claimed in court filings that the firm hired to handle bookings, Texas-based Sabre Corp., has hampered passenger reimbursements. The ultra-low-cost carrier said it had planned to carry out refunds directly, “without the need for customers to contact their credit card providers to submit chargebacks.” “Unfortunately, Sabre Corp. … has refused to assist with customer refunds,” according to an affidavit from Lynx’s interim CFO and filed with the Alberta Court of King’s Bench. That leaves the airline no choice but to work with its credit card processor to deal with chargebacks for would-be travellers whose flights were cancelled, the filings state. While customers wait to have their purchases reimbursed, the company’s investors may also have a harder time recouping their own cash from Lynx. “The chargeback process is expensive, and this will therefore result in significant chargeback fees to the applicants” — Lynx — “to the detriment of their stakeholders,” the carrier stated. <br/>