A group of progressive lawmakers wants federal officials to scrutinize the proposed merger of Spirit Airlines and Frontier Airlines over concerns that the combination could prove anti-competitive and hurt customers and workers. The lawmakers — including Senators Elizabeth Warren of Massachusetts and Bernie Sanders of Vermont and Representative Alexandria Ocasio-Cortez of New York — warn that the merger could drive up ticket prices, worsen customer service and reduce worker leverage. They laid out those misgivings in a letter on Wednesday to Transportation Secretary Pete Buttigieg and Assistant Attorney General Jonathan Kanter, the top antitrust official in the Justice Department. “For decades, the airline industry has been plagued by increasing consolidation, producing massive airline giants while leaving consumers and workers behind,” the lawmakers wrote. “Because the proposed Spirit-Frontier merger threatens to exacerbate these trends — including by potentially increasing prices during a period of high inflationary pressure — we urge the Department of Justice and the Department of Transportation to closely review this megamerger.” If federal officials find that the deal violates antitrust law or fails to serve the public interest, they should oppose the merger, the lawmakers said. The letter was also signed by Senator Ben Ray Luján of New Mexico and Representatives Rashida Tlaib of Michigan, Katie Porter of California, Jan Schakowsky of Illinois and Mondaire Jones of New York. When Spirit and Frontier announced plans to merge last month, they argued that the combination would make aviation more competitive. The merger would produce the nation’s fifth-largest airline by market share, enabling Spirit and Frontier to better take on the four largest airlines, which control about 80% of the domestic market, they said.<br/>
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SkyWest intends to end scheduled service to 29 cities in the coming months as it continues to face a flight crew shortage. The St George, Utah-based regional carrier on 10 March gave notice to the Department of Transportation (DOT) that it will end the flights on or before 10 June this year. All destinations named in the filing are part of the US government’s Essential Air Service (EAS) programme. EAS has been in place since the 1970s, and guarantees more than 200 small communities across the USA a minimal level of commercial air service. The government provides subsidies to carriers serving the cities, which would otherwise have little or no scheduled air service. “Although SkyWest Airlines would prefer to continue providing scheduled air service to these cities, the pilot staffing challenges across the airline industry preclude us from doing so,” the airline writes in its filing with the DOT. “Skywest has long been a supporter of the Essential Air Service programme and the critical need it fills in our national transportation infrastructure,” it adds in a media statement. ”We appreciate our partnerships and the support of these communities, and we are committed to delivering a solid, reliable product to each of them through this transition.” ”We are eager to work with officials toward solutions that would enable us to reconnect these communities to the National Air Transportation System in the future, and we are committed to remaining flexible and adjusting our plans if the situation improves more quickly than currently expected,” the company says. All cities to which the airline will end service are in United Airlines’ network and are located in the Midwest and Southeast USA.<br/>
Transat felt the pain of the Omicron variant last quarter, but saw bookings rebound as COVID-19 measures eased, leaving the tour operator’s CEO “cautiously optimistic” but wary of skyrocketing fuel prices. Between mid-December and mid-January, cancellations outpaced bookings as the new coronavirus strain mushroomed, reversing an upward sales trend through the fall. The swerve forced the company to cancel 30% of its January flights and prompted a $114m net loss in the quarter ended Jan. 31, a drop of 89% from losses a year earlier. But reservations began to climb again seven weeks ago, said CE Annick Guérard. In fact, bookings during the week of Feb. 15 — when the federal government announced it would roll back testing and self-isolation rules and lift its advisory against international travel — exceeded those from the same period in 2019. While flight volume now sits just below half of pre-pandemic levels, by this summer Transat expects to operate at 90% of its 2019 capacity as ticket sales ramp up, with eight fewer aircraft allowing for higher fleet utilization. “We remained convinced from the start that this Omicron wave was a bump in the road and not something that was there to last. We have certainly taken a hit for the winter, but we are confident that our summer will still unfold as we had initially planned,” Guérard told analysts Thursday. Russia’s invasion of Ukraine two weeks ago, which she called an “inconceivable attack,” has not impacted bookings to Europe. But sanctions and import bans on Russian oil have helped push fuel prices to record highs, directly affecting airlines. Guérard said Transat is “adapting” its pricing structure in response, and noted its long-range A321neo jetliners — known for their fuel efficiency — will be critical for cost savings on its 69 transatlantic routes this summer. CFO Patrick Bui said Transat may consider fuel hedging.<br/>“It is obviously very volatile,” he said. “Now we are currently unhedged, but that may change in the future.”<br/>
El Al is in advanced talks with Israel Phoenix Assurance to receive a $130m loan. Details of the loan have already been sent to the Ministry of Finance for approval. Interest on the loan will be between 7% and 8%, which will reflect effective interest of more than 12% when taking into account the risks in the deal and the business environment in which the airline is operating and the repercussions of the Covid pandemic. As part of the agreement, Phoenix can convert the loan within five years into a minority stake in El Al's Matmid Frequent Flyers Club, which is being put up as a guarantee for the loan. El Al had previously reported that it would sell part of its frequently flyers club in order to raise at least $100 million. The deadline for realizing its stake in the frequent flyers club was extended to March 14 by the Ministry of Finance, as part of the terms of its rescue package. El Al had previously been in talks to sell a stake in the frequent flyers club to Bank Hapoalim. El Al hopes to sign a memorandum of understanding with Phoenix next week but this is a complex deal that will require due diligence, so that it will take weeks and perhaps months before El Al receives the loan.<br/>
Nigerian domestic airlines may not survive the next few days if jet fuel prices keep rising, operators told a committee of parliament on Thursday, a day after saying fuel shortages were disrupting flights. Allen Onyeama, chairman of Air Peace Airline, who spoke on behalf of Airlines Operators of Nigeria, said airlines were now buying fuel at 670 naira ($1.61) a litre, up from 190 at the end of last year. “If the prices of aviation fuel keep rising at the rate they are moving, we are not sure we will survive the next 72 hours,” Onyeama said. He said a price of 200 naira a litre would ensure viability for the airlines. Global jet fuel prices have scaled a near 14-year peak as Russia’s invasion of Ukraine triggered a surge in the crude oil market, hitting airlines and passengers with steep cost increases. Moscow calls the action a “special military operation.” Mele Kyari, the group managing director of state oil firm Nigerian National Petroleum Company said the landing cost of jet fuel was 480 naira and selling below the price meant extending a government subsidy to the aviation industry. The government already spends billions subsiding car gasoline every year. Air Peace and Arik Air, the country’s two biggest airlines, said on Wednesday fuel shortages that initially affected motorists had also caught up with airlines, forcing cancellation of some flights and delays to others this week. <br/>
The Civil Aviation Authority of Bangladesh (CAAB) aims to delay the certification of startups Air Astra and Fly Dhaka to avoid further congestion at Dhaka, says Chairman Mafidur Rahman. He told The Daily Star that airlines have been facing a space shortage airside and in the existing terminals as the airport’s only runway has been closed from 0000L (1800Z) to 0800L (0200Z) daily since December 10, 2021, in preparation for the construction of taxiways for a third terminal. He said the eight-hour flight ban was disrupting flight schedules and passenger handling at the airport. About 110 to 115 flights of 28 airlines were currently operating to/from Dhaka Airport, carrying up to 21,000 passengers within the reduced travel period. Airline officials had reported chaotic operating conditions and blamed airport authorities for failing to provide emergency facilities. Amid the present congestion, CAAB was discouraging the entry of more operators from the airport, Rahman said. "Once the situation becomes normal after the completion of the construction and expansion of the taxiways, we will [re]consider the matter," he said. Fly Dhaka and Air Astra have already secured “no-objection certificates” (NOCs) from CAAB, but are yet to receive their air operator’s certificates (AOCs). The regulator has asked the startups to slow down the finalisation of their certification, including the procurement of aircraft. Bengali-language daily newspaper Bonik Barta reports CAAB has also asked the two airlines to set up bases at other airports – such as Chittagong and Sylhet - due to the parking space shortage at Dhaka Airport.<br/>