Canadian operator Lynx Air has reached a formal agreement with Boeing to cancel a large aircraft purchase deal, following the airline’s cessation of operations in February.

The original deal dates back to October 2015 and covered the purchase of 40 aircraft plus the lease of six more.

According to court filings in Alberta, following Lynx Air’s halting of services, the airline had received nine aircraft – all Boeing 737 Max 8s – and had been awaiting another 31.

Lynx Air had proposed a sale and investment solicitation, which the court approved in March, aiming to sell the airline’s remaining valuable assets including the rights to the Boeing aircraft deal.

Lynx Air 737 Max-c-Lynx Air

Source: Lynx Air

Lynx Air’s purchase agreement for 737 Max jets dates back to 2015

The Boeing purchase agreement has “considerable value” in the aviation market, says a 28 February affidavit filed by Michael Woodward, who is overseeing Lynx Air’s finances.

But a subsequent court filing on 26 March states that the purchase agreement has a “unique nature” which would make marketing the deal “exceedingly difficult or impossible”.

Boeing also had “reasonable and legitimate concerns” over protecting its commercial interests, the filing adds.

Given that the proposed sale process had a short time window, Lynx Air and Boeing began negotiating a consensual termination of the aircraft purchase agreement.

The two sides reached a deal on 21 March.

Lynx Air has sought to keep details of the deal confidential, because it contains commercially-sensitive information.

According to the court filing, the termination agreement is “fair and reasonable” and includes a payment by Boeing which is “satisfactory” to Lynx Air and senior creditor Indigo Northern Ventures. The filing adds that it will enable a “more cost-efficient wind-down” of the airline.