JetBlue Airways Monday ratcheted up its bidding war with Frontier Group Holdings for Spirit Airlines as the race for the ultra-low-cost carrier enters the final stretch. Both bidders see Spirit as an opportunity to expand their domestic footprints at a time when the US airline industry is dogged by labor and aircraft shortages. Either of the deals would create the fifth-largest US airline. Under the new offer, JetBlue offered a "ticking fee," which would give Spirit shareholders a monthly prepayment of 10 cents per share between January 2023 and the closing of the deal, raising the overall value of the deal to $34.15 per share. The New York-based carrier also increased the breakup fee to Spirit by $50m for a total of $400m if the deal fails to get regulatory approval. It will also prepay $2.50 per share as a cash dividend to Spirit stockholders following approval of the transaction. The latest offer came after Frontier last Friday raised its bid for Spirit. Frontier's revised offer persuaded shareholder advisory firm Institutional Shareholder Services (ISS) to reverse its position and recommend Spirit shareholders back a merger with the Denver-based budget carrier. Glass Lewis, another proxy firm, has also recommended the Frontier deal. Spirit shareholders are due to vote on the merger deal with Frontier on June 30.<br/>
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Frontier Group CE Barry Biffle said on Monday the company's revised offer for Spirit Airlines will be enough to secure a merger deal with the ultra-low-cost carrier. "We're really excited about it and getting good feedback," Biffle said. Frontier has been vying with JetBlue Airways to acquire Spirit. Either of the deals would create the fifth-largest US airline. Denver-based Frontier last week bumped up the cash component of its offer for Spirit by $2 per share to $4.13 per share and agreed to prepay $2.22 per share as a cash dividend to Spirit stockholders following approval of the transaction. It also increased its reverse termination fee to Spirit by $100m to $350m.<br/>
American Airlines’ regional carrier Envoy Air is offering pilots triple pay to pick up trips for most of next month, an effort the airline says will help it avoid flight disruptions during the peak summer travel season. “Super critical coverage has been declared for” July 2 to 31 for all bases, according to a note sent to Envoy pilots on Monday. “Any open time flown during this time frame will be paid at 300%. Thank you in advance for your help.” Ric Wilson, vice president of flight operations for Envoy, said although the triple pay is applicable throughout July, it doesn’t necessarily mean open trips are available for pilots each day. “We are into our peak flying season and we want to ensure that we can operate dependably for our customers,” Wilson said. The airline said that it “has had an extraordinary completion factor for the month of June,” referring to completed flights. “As part of the proactive strategy to run a reliable schedule during the peak summer travel season, Envoy is offering pilots triple pay to pick up uncovered trips on their days off in the month of July,” the carrier said. “This will only be offered if there are open trips available, and currently Envoy is fully covered with its flight schedule this summer.”<br/>
US start-up airline Airbahn appears to have quietly shelved its launch plan after regulators failed to renew an operating certificate and its only aircraft recently left the USA. The carrier could not be reached for comment, but Airbahn’s airframe, a 12-year-old Airbus A320 with the registration N786PB, was flown from Los Angeles-area Ontario International airport to Bangor, Maine on 23 June, according to flight-tracking website FlightAware.com. On 26 June, the website tracked the aircraft flying from Bangor to East Midlands airport in the UK. The A320 had been leased from Pakistan’s AirBlue, according to Cirium fleets data. Numerous attempts to reach Airbahn chief executive Tariq Chaudhary – who is also AirBlue’s chief executive – for further information were unsuccessful. Emails to him were returned to sender as “undeliverable”. The carrier’s website, which had been nothing more than a recruiting platform, now reports, “No job openings are available at this time”. Airbahn’s last posts on social media networks Facebook and Twitter were on 20 June. The company had received US Department of Transportation (DOT) approval for a certificate of Public Convenience and Necessity in 2020, giving Airbahn a green light to carry passengers, mail and cargo. But new airlines also require FAA certificates, and must pass a five-phase process to prove compliance. In February, now-former chief operations officer Scott Hall told FlightGlobal Airbahn was in phase three, and that its timeline had repeatedly shifted due to the vagaries of the commercial aviation industry’s pandemic recovery, which made planning difficult. That said, the carrier was aiming to launch revenue service ahead of the summer travel season. But on 30 April, the carrier’s DOT certificate expired. Airbahn CEO Chaudhary requested an extension until 30 August, which DOT denied. <br/>
Aer Lingus has announced the introduction of two new routes from Belfast City Airport. Flights to Cardiff and Southampton will begin on 7 July. The airline's Belfast hub already services Birmingham, Edinburgh, Leeds Bradford, Glasgow, Exeter and Manchester. The flights will be operated by Emerald Airlines, which took over Aer Lingus' regional routes after Stobart Air collapsed in 2021. Ciarán Smith, head of commercial at Emerald Airlines, said the routes would offer more choice for travellers from Belfast. "When quick getaways are on the top of everyone's mind, we are offering convenient timings and low fares, increasing connectivity to and from Northern Ireland," he said. "In addition, we will continue to add more routes and increase frequencies over the coming months." Ellie McGimpsey, aviation development manager at the airport, said: "Aer Lingus Regional's base at Belfast City Airport has been operational for just over three months and we are thrilled to already see expansion in both the number of routes served by the airline and the frequency of its services. "With the addition of Cardiff and Southampton, Aer Lingus Regional will now operate routes to eight of the 21 destinations Belfast City Airport will fly to this summer."<br/>
El Al has signed a formal agreement for the sale of its frequent-flyer scheme, valued at $500m, in order to provide additional liquidity to the airline. The scheme and its assets are being sold to a subsidiary of the carrier, El Al Matmid Frequent Flyer. El Al says it will receive $226m from the subsidiary through an allocation of shares to the carrier. Another $130m will be paid in cash derived from a six-year loan agreement with insurance firm Phoenix. Phoenix says it has signed a binding agreement for provision of the loan which will run until 30 June 2028. As part of the deal Phoenix will be granted an option to purchase up to 25% of El Al Matmid Frequent Flyer shares, at any time until the end of the loan period – and conditionally up to a year afterwards. The balance of $144 million for the sale of the frequent-flyer programme will be paid through a three-year loan. El Al says related long-term agreements to regulate commercial aspects of the frequent-flyer programme’s continuation have also been signed which take effect from 1 July.<br/>
Airbus has emerged as the front-runner to win an order for as many as 50 aircraft worth up to $5.5b from Jet Airways India Ltd., people familiar with the matter said, solidifying the European planemaker’s hold in the world’s fastest-growing aviation market. The talks are for A320neo jets and A220 planes, the people said, asking not to be identified because the deliberations are private. Boeing Co. and Embraer SA are also in discussions and no final decision has been taken, the people said. Although at sticker prices any transaction would be north of $5b, discounts are common in such large purchases. While delivery slots are scarce, airlines can lease jets from lessors who buy in bulk. Representatives for Boeing and Airbus didn’t immediately respond to requests for comment. The potential order comes as Jet Airways, once India’s top private airline, is preparing to return to the skies. Jet Airways got its flying license last month, marking the first time a carrier has been revived under the nation’s new bankruptcy laws. The flying permit proved Jet Airways is ready to operate, signaling its transformation into a “new avatar with fresh funding, changed ownership, and new management,” according to a statement. The airline last week invited former cabin crew to join it. Jet is planning to come back with a hybrid of premium and low-cost services, Chief Executive Officer Sanjiv Kapoor said in April. It will have a two-class configuration where business class passengers will be offered services including free meals, while economy class flyers will pay for meals and other services, he said.<br/>
The low-cost carrier arm of Japan's ANA Holdings (9202.T), Peach Aviation, is set to resume flights to Seoul from late August, according to a person familiar with the matter, after a 2-1/2-year halt due to the pandemic and strict border measures. Peach will make six round trip flights a week between Osaka's Kansai International Airport and South Korea's Incheon International Airport starting on Aug. 28, the person said, declining to be identified because the information has not been made public. The resumption of flights is the latest sign of Japan's slow emergence from some of the world's strictest border measures in response to the COVID-19 pandemic. A Peach spokesperson declined to comment, saying the information was not something announced by the company. The resumption comes as COVID-19 cases in South Korea are seen falling, and as there are expectations that strained bilateral relations will improve under the new administration of South Korean President Yoon Seok-youl.<br/>