unaligned

The influential shareholder advisory service Institutional Shareholder Services is now advising Spirit Airlines’ investors to vote in favor of a proposed merger with Frontier Airlines over a rival offer from JetBlue Airways, after Frontier increased its offer. The recommendation, which was delivered on Friday, is a reversal for ISS, which had previously advised Spirit shareholders to vote against a deal with Frontier, a fellow low-cost carrier. It comes during a heated bidding war between JetBlue and Frontier ahead of a Spirit shareholder vote on June 30. Many large investors take ISS’s recommendations seriously when deciding how to vote on corporate proposals, director candidates and other matters. “Shareholders are best served by taking the deal that provides the best combination of long-term value and compensation in the event of regulatory rejection,” ISS wrote. “On balance, support for the merger with Frontier on the revised terms is warranted.” Earlier this week, JetBlue raised its all-cash offer by $2 per share to $33.50, for a total of about $3.7b. It also offered additional concessions, like further divestitures, to help secure regulatory clearance, given the deal is likely to face tough antitrust scrutiny. On Friday, Frontier likewise raised the cash portion of its bid by $2 to $4.13 a share, alongside a stock component equivalent to 1.9126 shares of Frontier for each share of Spirit. That deal would value Spirit at roughly $2.7b, based on its share price on Friday. Even though Frontier’s bid initially values Spirit less, Frontier argues that the share portion of its offer allows Spirit shareholders to further benefit should shares of the combined company climb. It has also attacked JetBlue’s bid as less likely to win regulatory approval.<br/>

Alaska Airlines said Friday that, despite a US Supreme Court abortion ruling, it will continue to reimburse employee travel expenses for certain medical procedures and treatments if they are not available where they live. A growing number of companies are paying for employees to get access to reproductive health services if home states ban them. Alaska Airlines said it is "reimbursing travel for certain medical procedures and treatments if they are not available where you live. Today’s Supreme Court decision does not change that."<br/>

A kosher certification group sued JetBlue Airways Corp in New Jersey federal court Thursday, alleging JetBlue unlawfully used its trademarks to advertise food it had not certified. According to the lawsuit, New York-based JetBlue sells an artichoke snack that it says is certified by Kof-K Kosher Supervision without the group's consent. Kof-K has never certified any of JetBlue's products as kosher or given the airline permission to use its trademarks, according to the lawsuit. A JetBlue spokeperson said Friday that the airline was investigating the claims. An attorney for Kof-K declined to comment. Kosher foods are prepared in accordance with strict Jewish dietary laws. Teaneck, New Jersey-based Kof-K certifies kosher products in the U.S. and internationally. A JetBlue menu lists artichoke snacks in its "Mediterranean-inspired snackbox" as being "Kosher certified by KOF-K Kosher Supervision." The menu also offers several other snacks it says were kosher-certified by other groups.<br/>

LATAM has announced that it will eliminate 100% of single-use plastics used in its operations by 2023. This commitment will be achieved through initiatives such as changing onboard materials, incorporating more sustainable elements, and with the group’s recycling and reuse programs. To date, gradual changes have been implemented inside the aircraft. From June 1, all international flights have reusable bags to cover the rest items in the Premium Business cabin. New travel kits were also recently launched for passengers in Premium Business, which have more sustainable elements such as bamboo toothbrushes and kraft paper wrappers. In the Economy cabin, important changes will be announced in the coming weeks in the materials used for all elements of service (glasses, cutlery, tableware), which will be replaced with reusable and/or recyclable materials. In the short term, this initiative will eliminate more than 1,000 tons of single-use plastics, equivalent to 36,000 500ml plastic bottles. LATAM Cargo is implementing five pilot projects, expected to reduce the use of plastic in cargo operations by more than 60%. One of the most important projects is an initiative that aims to replace the plastic used for wrapping loads with reusable blankets or waterproof covers. “The proposed goals have challenged us to rethink the design, materiality, and protocols of our onboard service. We are aware that this is a gradual process, where we still have a lot to learn, but we will continue working to implement concrete changes that allow us to generate a greater impact for the benefit of our communities and ecosystems,” said Paulo Miranda, Vice President of Customers at LATAM Airlines Group.<br/>

Less than 2% of Ryanair flights scheduled between Friday and Sunday were affected by cabin crew strikes, the Irish low-cost carrier said. Ryanair cabin crew unions in Belgium, Spain, Portugal, France and Italy had announced plans for action over the weekend with crews in Spain set to strike again on June 30 and July 1-2. "Less than 2% of Ryanair's 9,000 flights operating this weekend (24/25/26 June) have been affected by minor and poorly supported crew strikes," Ryanair said. Unions have said the Irish airline does not respect local labour laws covering issues such as the minimum wage and have urged management to improve working conditions. Ryanair, which told Reuters last week it had negotiated labour agreements covering 90% of its staff across Europe, says it offers staff competitive and fair conditions. It has said it does not expect widespread disruption this summer.<br/>