|From: Sam||1/21/2022 2:02:38 PM|
|Biden administration suspending 44 U.S flights by Chinese carriers|
By David Shepardson
January 21, 2022 12:50 PM ESTLast Updated an hour ago
WASHINGTON, Jan 21 (Reuters) - The U.S. Transportation Department said Friday it would suspend 44 China-bound flights from the United States by four Chinese carriers in response to the Chinese government's decision to suspend some U.S. carrier flights over COVID-19 concerns.
The Biden administration action came after Chinese authorities suspended a total of 44 United Airlines , American Airlines (AAL.O) and Delta Air Lines (DAL.N) flights after some passengers tested positive for COVID-19.
The suspensions will begin on Jan. 30 with Xiamen Airlines’ scheduled Los Angeles-to-Xiamen flight.
The decision will cut some flights by Xiamen, Air China (601111.SS), China Southern Airlines (600029.SS) and China Eastern Airlines (600115.SS). The Chinese Embassy in Washington did not immediately comment.
The Transportation Department said China's suspension of some flights "are adverse to the public interest and warrant proportionate remedial action." It added that China's "unilateral actions against the named U.S. carriers are inconsistent" with a China-U.S. bilateral agreement.
The department said that if China revised its "policies to bring about the necessary improved situation for U.S. carriers, the Department is fully prepared to once again revisit the action." But it also warned that if China cancels more flights, "we reserve the right to take additional action."
The number of U.S. flights being scrapped has surged since December, as infections caused by the highly contagious Omicron variant of the coronavirus soared to record highs in the United States.
Beijing and Washington have sparred over air services since the start of the pandemic. In August, the U.S. Transportation Department limited four flights from Chinese carriers to 40% passenger capacity for four weeks after Beijing imposed identical limits on four United Airlines flights.
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|From: Sam||1/26/2022 7:08:49 AM|
| American Airlines cuts thousands of flights in March as pandemic hopes clash with reality|
TRIBUNE CONTENT AGENCY 7:07 AM ET 1/26/2022
Symbol Last Price Change
|AAL ||16.46 ||0 (0%)|
|LUV ||43.85 ||0 (0%)|
|BA ||204.1 ||0 (0%)|
|QUOTES AS OF 04:00:00 PM ET 01/25/2022 |
American Airlines (AAL) has cut thousands of flights from its schedule for the month of March as omicron, pilot shortages and delivery delays on Boeing’s 787 planes hinder the recovery from the two-year-old COVID-19 pandemic.
The Fort Worth-based airline has axed nearly 40,000 flights from its March plans since the middle of December, including more than 1,600 arrivals and departures out of DFW International Airport, the airline’s biggest hub, according to Dallas-based Airline Data Inc.
An American Airlines(AAL) spokesman confirmed the cuts and said the airline is working with passengers in advance to make sure that changes create “minimal” impact on customers.
Other airlines, including Atlanta-based Delta and Chicago-based United, have made similar cuts in recent weeks as they face the same issues confronting American. Delta has cut about 30,000 flights for March in recent weeks and United has cut 10,000 flights.
Dallas-based Southwest Airlines(LUV), which only releases schedules five to six months in advance of flights, hasn’t made the same kind of flight reductions for March.
Many of American’s schedule reductions came in mid-December and the rest occurred earlier this month, the company said.
The cuts come during another key travel period — spring break, when airports often see their biggest crowds of the year. American made similar cuts to its January and February schedules, although those months are often the weakest travel periods of the year for airlines between Christmas holidays and the beginning of the spring and summer travel rush.
For DFW travelers, it doesn’t necessarily mean that destinations from the North Texas airport are disappearing, but there will likely be fewer daily flights to cities such as Midland and St. George, Utah. DFW is losing about 52 flights a day in March but will still see as many as 1,512 arriving and departing flights on Tuesday, March 8, its busiest day for flights during the spring break rush.
Airlines often make flight plans 10 or 11 months in advance, and that means making cuts or additions as COVID-19 continues to make the future unpredictable, said Jeff Pelletier, co-founder of Airline Data Inc.
“It’s left airlines in a wait-and-see mode,” Pelletier said. “But all the airlines are getting better at balancing the unknown — and there are a lot of unknowns right now.”
While American Airlines’ leaders are optimistic the omicron-fueled COVID-19 surge has peaked, the airline continues to reduce its expectations for the coming months as it faces the other realities caused by the ongoing global health crisis, including supply chain and labor constraints.
“Everything that we see suggests that there is a pent-up desire for people to get out on the road, whether it’s for leisure or business,” American Airlines(AAL) president and incoming CEO Robert Isom said last week.
Between bottlenecks with its Boeing 787 jets and pilot training, American Airlines(AAL) is being forced to cut back, even though leisure travelers are eager to fly and businesses are gradually sending more employees on trips.
American Airlines (AAL) said last week that it’s talking with Boeing(BA) about additional compensation for delays on 19 Boeing 787 jets that were supposed to be delivered in 2021, planes the carrier needs for long-haul travel to Europe, South America, Asia and for cross-country flying.
“As for 2022 capacity, much of our plans are subject to the uncertain timing of deliveries of our aircraft,” American Airlines(AAL) chief financial officer Derek Kerr said last week. “As I mentioned previously, we removed these aircraft from our near-term schedule to protect our customers.”
Boeing (BA) halted delivery of its signature 787 Dreamliner jets last year because of production issues. The Chicago-based aircraft manufacturer still hasn’t indicated when those planes may be OK’d for delivery.
American Airlines (AAL) also needs to hire as many as 2,000 pilots this year to make up for a big chunk of the company’s pilots hitting retirement age and for others who took early retirement packages during the pandemic.
But getting pilots hired and trained takes months, and airlines are also trying to figure out how to hire pilots without taking staff pilots from regional airlines that are critical to its network.
“The biggest issue that we’re dealing with is the throughput of pilots and getting them through training,” Isom said. “We’ve invested an incredible amount of resources [in] having training assets ready to go. Those are all coming online.”
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|From: Glenn Petersen||2/5/2022 8:29:47 PM|
|Delta asks Justice Dept. to put unruly passengers on national no-fly list|
By Kelly Yamanouchi, The Atlanta Journal-Constitution
7 hours ago
Delta Air Lines is asking the U.S. Justice Department to create a national no-fly list of passengers who have been convicted for on-board disruptions.
Ed Bastian, CEO of Delta, wrote a letter to U.S. Attorney General Merrick Garland this past week saying such a “national, comprehensive unruly passenger ‘no-fly list’” that would bar those listed from traveling on any airline is a “much-needed step.”
The Atlanta-based airline has already put nearly 1,900 people on its no-fly list for refusing to comply with mask requirements, and submitted more than 900 names of passengers to the Transportation Security Administration for the agency to pursue civil penalties, according to Bastian.
The rate of unruly passenger incidents on Delta has nearly doubled since 2019 and the airline has two former Justice Department prosecutors on its legal team to cooperate with federal prosecutors when employees are involved, Bastian wrote. Four incidents on Delta have resulted in federal charges against customers in the past 30 days, he added.
He said the airline is offering more self-defense and de-escalation training for flight attendants and other employees who deal with customers, and expanding mental health coaching for employees “to help ensure they have the support they need in a challenging environment.”
The Justice Department did not immediately comment on the request from Delta.
It’s not the first time Delta has tried to create a national no-fly list of unruly passengers. Last year, Delta said it had shared the names of its no-fly list of more than 600 unruly passengers with the Federal Aviation Administration and asked other airlines to also share their no-fly lists.
“A list of banned customers doesn’t work as well if that customer can fly with another airline,” Delta said in that memo in September 2021. However, carriers sharing banned traveler lists could raise privacy or antitrust issues. A list of passengers federally convicted for their behavior could be a much narrower category of unruly passengers, based on federal prosecutions rather than airline decisions.
The Justice Department in November said it would prioritize federal prosecution of unruly passengers who commit crimes that “endanger the safety of passengers, flight crews and flight attendants.” It noted that federal law prohibits assaults, intimidation and threats of violence that interfere with flight crews. Garland said in that announcement that “when passengers commit violent acts against other passengers in the close confines of a commercial aircraft, the conduct endangers everyone aboard.”
Last month, the U.S. Attorney’s Office for the Eastern District of New York said it had arrested three women who had assaulted a Delta security officer in a jetway at New York’s John F. Kennedy International Airport, alleging that after they were denied boarding for a flight, they “viciously assaulted an airline security officer by beating him to the floor with his radio and then kicking and punching him in the face and body while he was down.”
The FAA says so far this year, there have been 323 reports of unruly passengers, including 205 related to face masks. The issue came to the fore a year ago when the FAA put in place a “zero tolerance” policy for unruly and dangerous behavior on airline flights and the federal mask mandate was put in place. Unruly passengers represent a small fraction of total travelers and the number of reported unruly passengers has declined since the spike in incidents in early 2021, but officials say the incidents are still a problem.
Delta asks Justice Dept. to put unruly passengers on national no-fly list (ajc.com)
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|From: Sam||2/7/2022 6:36:58 AM|
| Frontier Airlines and Spirit Airlines to Combine, Creating America’s Most Competitive Ultra-Low Fare Airline|
GLOBENEWSWIRE 6:30 AM ET 2/7/2022
Symbol Last Price Change
|SAVE ||21.73 ||0 (0%)|
|ULCC ||12.39 ||0 (0%)|
|QUOTES AS OF 04:10:00 PM ET 02/04/2022 |
Highly Complementary Networks to Serve Over 145 Destinations Across the United States, Latin America and the Caribbean
Consumers Win With $1 Billion in Annual Savings and Even More Ultra-Low Fares to More Places
Combined Airline to Drive Competition and Expand Service to Underserved Small and Mid-Sized Cities Across the United States
Combined Fleet Will Be the Youngest, Most Fuel-Efficient and Greenest in the United States
Combination Provides Better Opportunities and More Stability for 15,000 Professionals, Adding 10,000 Direct Jobs by 2026
Conference Call to Discuss Transaction Today at 6:30 AM MT / 8:30 AM ET
DENVER, Colo. and MIRAMAR, Fla., Feb. 07, 2022 (GLOBE NEWSWIRE) -- Spirit Airlines, Inc.(SAVE) (“Spirit”) and Frontier Group Holdings, Inc.(ULCC) (“Frontier”) , parent company of Frontier Airlines, Inc., today announced a definitive merger agreement under which the companies will combine, creating America’s most competitive ultra-low fare airline.
Together, Frontier and Spirit expect to change the industry for the benefit of consumers, bringing more ultra-low fares to more travelers in more destinations across the United States, Latin America and the Caribbean, including major cities as well as underserved communities. The stronger financial profile of the combined company will empower it to accelerate investment in innovation and growth and compete even more aggressively, especially against the dominant “Big Four”1 airlines, among others.
William A. Franke, the Chair of Frontier’s Board of Directors and the managing partner of Indigo Partners, Frontier’s majority shareholder, noted that Indigo has a long history with both Spirit and Frontier, and is proud to partner with them in creating a disruptive airline. “We worked jointly with the Board of Directors and senior management team across both carriers to arrive at a combination of two complementary businesses that together will create America’s most competitive ultra-low fare airline for the benefit of consumers.”
“We are thrilled to join forces with Frontier to further democratize air travel,” said Ted Christie, President and CEO of Spirit. “This transaction is centered around creating an aggressive ultra-low fare competitor to serve our Guests even better, expand career opportunities for our Team Members and increase competitive pressure, resulting in more consumer-friendly fares for the flying public. We look forward to uniting our talented teams to shake up the airline industry while also continuing our commitment to excellent Guest service.”
“This combination is all about growth, opportunities and creating value for everyone – from our Guests to our Team Members to the flying public at large,” said Mac Gardner, Chairman of the Board of Spirit. “We’re a perfect fit – our businesses share similar values, including our longstanding commitment to affordable travel. At the same time, we have complementary footprints and fleets, including one of the youngest and greenest fleets worldwide. Together, we will be even more competitive for our Guests and our Team Members, and we are confident we can deliver on the benefits of this combination to consumers.”
“Together, Frontier and Spirit will be America’s Greenest Airline and deliver more ultra-low fares to more people in more places,” said Barry Biffle, President and CEO of Frontier. “I couldn’t be more excited for our team members, customers, partners, the communities we serve and our shareholders.”
Consumers Win With More Ultra-Low Fares to More Places
The combined airline is expected to:
Deliver $1 billion in annual consumer savings. Offer more than 1,000 daily flights to over 145 destinations in 19 countries, across complementary networks. Expand with more than 350 aircraft on order to deliver more ultra-low fares. Increase access to ultra-low fares by adding new routes to underserved communities across the United States, Latin America and the Caribbean. Deliver even more reliable service through a variety of operational efficiencies. Expand frequent flyer and membership offerings. Team Members Win With Expanded Opportunities and Increased Stability
By 2026 Spirit and Frontier expect to add 10,000 direct jobs and thousands of additional jobs at the companies’ business partners. Given the growth of the combined company, it is expected that all current team members will have an opportunity to be a part of the combined airline. Team Members of the combined airline will have better career opportunities and more stability as part of the most competitive ultra-low fare airline in the United States.
Sustainability Wins With America’s Greenest Airline
Frontier and Spirit will be America’s Greenest Airline, providing nationwide access to sustainable and affordable air travel. The combined airline will have the youngest, most modern and fuel-efficient fleet in the United States, featuring the largest fleet of A320neo family aircraft of any airline in the country. The combined airline is expected to achieve over 105 seat miles per gallon by 2025.
Shareholders Win With Superior Value Creation
The combination of Spirit and Frontier is expected to deliver enhanced value to shareholders of both companies.
On a combined basis, the company would have annual revenues of approximately $5.3 billion based on 2021 results. Once combined, Frontier and Spirit expect to deliver annual run-rate operating synergies of $500 million once full integration is completed, which will be primarily driven by scale efficiencies and procurement savings across the enterprise with approximately $400 million in one-time costs. The combined airline is expected to have a strengthened financial profile, with a cash balance of approximately $2.42 billion as of the end of 2021 on a combined basis.
Under the terms of the merger agreement, which has been unanimously approved by the boards of directors of both companies, Spirit equity holders will receive 1.9126 shares of Frontier plus $2.13 in cash for each existing Spirit share they own. This implies a value of $25.83 per Spirit share at Frontier’s closing stock price of $12.39 on February 4, 2022, representing a premium of 19% over the February 4, 2022, closing price of Spirit, and a 26% premium based on the 30 trading-day volume-weighted average prices of Frontier and Spirit. The transaction values Spirit at a fully diluted equity value of $2.9 billion, and a transaction value of $6.6 billion when accounting for the assumption of net debt and operating lease liabilities.
Upon closing of the transaction, existing Frontier equity holders will own approximately 51.5% and existing Spirit equity holders will own approximately 48.5% of the combined airline, on a fully diluted basis, providing both Frontier and Spirit equity holders with substantial upside potential.
Bringing Our Airlines Together – Governance and Timing to Completion
The Board of Directors for the new airline will be comprised of 12 directors (including the CEO), seven of whom will be named by Frontier and five of whom will be named by Spirit. Mr. Franke will be Chairman of the Board of the combined company.
The merger is expected to close in the second half of 2022, subject to satisfaction of customary closing conditions, including completion of the regulatory review process and approval by Spirit stockholders. Frontier’s controlling stockholder has approved the transaction and related issuance of shares of Frontier common stock upon signing of the merger agreement. The combined company’s management team, branding and headquarters will be determined by a committee led by Mr. Franke prior to close.
Merger Conference Call and Transaction Website Details
Frontier and Spirit will conduct a live conference call and webcast to discuss the transaction at 6:30 AM MT / 8:30 AM ET today. To listen to the live call, please dial (800) 459-5346 or (203) 518-9544 and enter the participant code 4789568.
A live webcast of the conference call will be accessible through: webinars.on24.com. The accompanying presentation slides will be available on both the Spirit website (https://ir.spirit.com) and the Frontier website (https://ir.flyfrontier.com), as well as www.EvenMoreUltraLowFares.com, a joint website dedicated to the transaction, at 6:15 AM MT / 8:15 AM ET. The webcast will also be available on the Spirit website (https://ir.spirit.com), the Frontier website (https://ir.flyfrontier.com) and www.EvenMoreUltraLowFares.com.
A replay of the call will be available until February 10, 2022, by dialing (888) 274-8331 or (402) 220-7332.
Spirit and Frontier Fourth Quarter and Full Year 2021 Earnings Results
In separate press releases today, Frontier and Spirit are also announcing earnings results for the fourth quarter and full year 2021. In light of today’s proposed transaction, Spirit and Frontier have canceled their previously announced calls for Wednesday, February 9, 2022, at 10:00 AM ET and 4:30 PM ET, respectively.
Citigroup Global Markets Inc. is serving as financial advisor and Latham & Watkins, LLP is serving as legal advisor to Frontier. Barclays and Morgan Stanley & Co. LLC are serving as financial advisors and Debevoise & Plimpton LLP is serving as legal advisor to Spirit.
No Offer or Solicitation
This communication is for informational purposes only and is not intended to and does not constitute an offer to sell, or the solicitation of an offer to subscribe for or buy, or a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, sale or solicitation would be unlawful, prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law.
Important Additional Information Will Be Filed With the SEC
Frontier will file with the Securities and Exchange Commission (“SEC”) a Registration Statement on Form S-4 in connection with the proposed transaction, including a definitive Information Statement/Prospectus of Frontier and a definitive Proxy Statement of Spirit. INVESTORS AND STOCKHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT/ INFORMATION STATEMENT/ PROSPECTUS/ PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED BY FRONTIER OR SPIRIT WITH THE SEC IN THEIR ENTIRETY CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT FRONTIER, SPIRIT, THE PROPOSED TRANSACTIONS AND RELATED MATTERS. Investors and stockholders will be able to obtain free copies of the Registration Statement and the definitive Information Statement/Proxy Statement/Prospectus and other documents filed with the SEC by Frontier and Spirit through the website maintained by the SEC at www.sec.gov. In addition, investors and stockholders will be able to obtain free copies of the information statement and the proxy statement and other documents filed with the SEC by Frontier and Spirit on Frontier’s Investor Relations website at ir.flyfrontier.com and on Spirit’s Investor Relations website at ir.spirit.com.
Participants in the Solicitation
Frontier and Spirit, and certain of their respective directors and executive officers, may be deemed to be participants in the solicitation of proxies in respect of the proposed transactions contemplated by the Merger Agreement. Information regarding Frontier’s directors and executive officers is contained in Frontier’s final prospectus filed with the SEC pursuant to Rule 424(b), which was filed with the SEC on April 2, 2021, and in Frontier’s Current Report on Form 8-K, dated July 16, 2021, as amended. Information regarding Spirit’s directors and executive officers is contained in Spirit’s definitive proxy statement, which was filed with the SEC on March 31, 2021.
Cautionary Statement Regarding Forward-Looking Information
Certain statements in this communication, including statements concerning Frontier, Spirit, the proposed transactions and other matters, should be considered forward-looking within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on Frontier’s and Spirit’s current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Such forward-looking statements are and will be subject to many risks and uncertainties relating to Frontier’s and Spirit’s operations and business environment that may cause actual results to differ materially from any future results expressed or implied in such forward looking statements. Words such as “expects,” “will,” “plans,” “intends,” “anticipates,” “indicates,” “remains,” “believes,” “estimates,” “forecast,” “guidance,” “outlook,” “goals,” “targets” and other similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed, or assured. All forward-looking statements in this communication are based upon information available to Frontier and Spirit on the date of this communication. Frontier and Spirit undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances, or otherwise, except as required by applicable law.
Actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement; failure to obtain applicable regulatory or Spirit stockholder approval in a timely manner or otherwise; failure to satisfy other closing conditions to the proposed transactions; failure of the parties to consummate the transaction; risks that the new businesses will not be integrated successfully or that the combined companies will not realize estimated cost savings, value of certain tax assets, synergies and growth, or that such benefits may take longer to realize than expected; failure to realize anticipated benefits of the combined operations; risks relating to unanticipated costs of integration; demand for the combined company’s services; the growth, change and competitive landscape of the markets in which the combined company participates; expected seasonality trends; diversion of managements’ attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the transaction; risks related to investor and rating agency perceptions of each of parties and their respective business, operations, financial condition and the industry in which they operate; risks related to the potential impact of general economic, political and market factors on the companies or the proposed transaction; that Frontier’s cash and cash equivalents balances together with the availability under certain credit facilities made available to Frontier and certain of its subsidiaries under its existing credit agreements, will be sufficient to fund Frontier’s operations including capital expenditures over the next 12 months; Frontier’s expectation that based on the information presently known to management, the potential liability related to Frontier’s current litigation will not have a material adverse effect on its financial condition, cash flows or results of operations; that the COVID-19 pandemic will continue to impact the businesses of the companies; ongoing and increase in costs related to IT network security; and other risks and uncertainties set forth from time to time under the sections captioned “Risk Factors” in Frontier’s and Spirit’s reports and other documents filed with the SEC from time to time, including their Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
About Frontier Airlines
Frontier Airlines is committed to “Low Fares Done Right.” Headquartered in Denver, Colorado, the company operates more than 110 A320 family aircraft and has the largest A320neo fleet in the U.S. The use of these aircraft, Frontier’s seating configuration, weight-saving tactics and baggage process have all contributed to the airline’s average of 43 percent fuel savings compared to other U.S. airlines (fuel savings is based on Frontier Airlines’ 2019 fuel consumption per seat-mile compared to the weighted average of major U.S. airlines), which makes Frontier the most fuel-efficient U.S. airline. With over 230 new Airbus planes on order, Frontier will continue to grow to deliver on the mission of providing affordable travel across America.
About Spirit Airlines(SAVE)
Spirit Airlines (SAVE) is committed to delivering the best value in the sky. We are the leader in providing customizable travel options starting with an unbundled fare. This allows our Guests to pay only for the options they choose — like bags, seat assignments and refreshments — something we call Á La Smarte. We make it possible for our Guests to venture further and discover more than ever before. Our Fit Fleet® is one of the youngest and most fuel-efficient in the U.S. We serve destinations throughout the U.S., Latin America and the Caribbean, and are dedicated to giving back and improving those communities. Come save with us at spirit.com.
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|From: Sam||2/8/2022 7:50:07 AM|
| Airline merger would give Frontier, Spirit bigger scale in Atlanta|
TRIBUNE CONTENT AGENCY 11:59 PM ET 2/7/2022
Symbol Last Price Change
|SAVE ||25.46 ||0 (0%)|
|LUV ||44.6 ||0 (0%)|
|DAL ||40.94 ||0 (0%)|
|AAL ||17.28 ||0 (0%)|
|NYT ||40.7 ||0 (0%)|
|QUOTES AS OF 04:10:00 PM ET 02/07/2022 |
Feb. 7—Frontier Airlines and Spirit Airlines(SAVE) announced Monday they will merge, joining together two ultra low-cost U.S. carriers.
Denver-based Frontier and Miramar, Fla.-based Spirit have become known for their budget model, charging extra for large carry-on bags as well as checked bags, and also charging for in-flight beverages.
The two airlines said combining would allow them to "compete even more aggressively, especially against the dominant 'Big Four' airlines, among others." The Big Four airlines they refer to are American, Delta, Southwest(LUV) and United.
Frontier plans to buy out Spirit shareholders. The merger requires regulatory approval, including possible antitrust scrutiny.
Frontier and Spirit have each carved out a small presence in Atlanta over the years. As of 2021, Spirit carried 2.92% of the passengers at Hartsfield-Jackson, while Frontier Airlines carried 1.91% of passengers. That's based on data for the year through October, the most recent report available from the airport.
The dominant carrier at Hartsfield-Jackson is Atlanta-based Delta Air Lines(DAL), which makes up more than 80% of the market including its Delta Connection regional carrier flights.
The second-largest carrier at the Atlanta airport is Dallas-based Southwest Airlines(LUV), which has 9% of the market.
Even though Spirit controlled less than 3% of the market, that still makes it the third-largest carrier in Atlanta behind Delta/Delta Connection and Southwest(LUV).
American Airlines (AAL) carried 2.37% of the passengers in Atlanta, while United Airlines carried 1.41%.
Frontier and Spirit say with the deal, they would go from the 7th- and 8th- largest airlines in the U.S. to the 5th-largest airline.
It's yet to be seen how flights and service might change under a merged Frontier and Spirit. The airlines called their route networks "highly complementary" and said they planned to add new routes to "underserved communities" in the U.S., Latin America and the Caribbean.
They also said they expect to add 10,000 jobs by 2026. Spirit and Frontier had a combined $5.3 billion in annual revenues in 2021. Frontier's majority shareholder, Indigo Partners, is a previous investor in Spirit.
However, some observers expect the deal could face antitrust challenges from the Biden administration, which has taken a more aggressive approach to challenging mergers, the New York Times(NYT) reported.
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|From: Sam||3/7/2022 2:44:30 PM|
|Airline ETF sets 52-week low amid oil price spike and continued fighting in Ukraine|
Mar. 07, 2022 2:31 PM ET
By Jason Capul
The U.S. Global Jets ETF (NYSEARCA: JETS) and it's $3.4B assets under management have felt selling pressure lately, as investors dump shares of the exchange traded fund. The recent spike in oil prices, fueled by Russia's invasion of Ukraine, has pushed the airline sector sharply lower.
In Monday's intraday trading, JETS had fallen 9.4% on the day and was down 19% on the year. At the same time, the fund's five top holdings had all reached 52-week lows.
The prospect of high fuel prices has sent investors fleeing from airline stocks lately. This has come as oil prices (Cl1: COM) have surpassed $120 per barrel. As oil spikes, so in turn, has the cost of jet fuel, now at its highest level in 13 years.
Moreover, the escalation of war between the Ukraine and Russia have raised concerns about travel demand, as Europe faces a major conflict and some commentators worry about the potential of World War III.
JETS' top five holdings are Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), and Alaska Air Group (NYSE: ALK), which are weighted at 10.31%, 10.06%, 9.51%, 9.46%, and 3.29%, respectively. Each have dropped to a 52-week trading low on Monday.
In afternoon trading, DAL found itself -10.7%, UAL was -13.4%, LUV was down 7.7%, while AAL was -9.7%, and ALK was -9.6%.
JETS and its top five positions are not the only airline stocks that are feeling the heat today. See a list of other airline stocks that are also trading to the downside.
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|From: TimF||3/21/2022 9:38:47 AM|
|China Eastern Airlines Flight MU5735: 132 feared dead after plane crashes into mountain|
There has not yet been official confirmation of any casualties but footage from the scene suggests there was a huge fire at the crash site
The flight was travelling from Kunming to Guangzhou when it came down in the southern region of Guangxi
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|From: TimF||3/21/2022 12:46:05 PM|
|‘Grand Theft Aero’: Russia’s $10bn plane grab signals losses for lessors|
Lengthy battle with insurers looms after Moscow signs law allowing jets owned by leasing groups to be re-registered
Three days after the invasion of Ukraine, a Boeing 737 — operated by Russia’s Pobeda but owned by Dublin-based Avolon — was impounded after landing in Istanbul.
The plane’s seizure came as European sanctions on Russia’s aviation sector prompted a global scramble among overseas leasing groups to recover more than 500 aircraft, worth an estimated $10bn, that were stuck in the country.
But it was among the last to be repossessed, after the Kremlin moved to block such efforts last week by signing a new law allowing foreign jets to be re-registered in Russia.
“The Russian government is playing a game of what I call ‘Grand Theft Aero’,” said Paul Jebely, global head of asset finance at law firm Withers.
Russia’s actions could force the world’s largest leasing companies to write off billions of dollars worth of assets, raising the prospect of lengthy battles with insurers over who should foot the bill.
Rating agencies have warned that the lost income from the leases has increased risks to bondholders in deals backed by the aircraft.
Moscow has flouted decades-old international treaties that provided security to lessors operating in more risky jurisdictions and helped underpin a boom in international travel.
“This is the worst-case scenario, where a country unilaterally takes control of an aircraft’s register,” said Phil Seymour, president of aviation consultancy IBA. “It has never really been contemplated. There will be repercussions in terms of aircraft lease agreements.”
Some industry executives have insisted that it was too early to write off the chances of these planes flying internationally again. Others, however, believe the chances are slim.
“From a planning perspective, we should assume that those aeroplanes are gone for all intents and purposes,” one executive said.
Dublin: the world’s aircraft leasing capitalThe crisis has sent shockwaves through the aviation finance industry of Ireland, which is home to 14 of the world’s top 15 lessors, including market leader AerCap.
Irish lessors manage more than €100bn in assets, 22 per cent of global aircraft and more than 40 per cent of those that are leased, according to IDA Ireland, the country’s investment promotion agency...
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