unaligned

On the eve of a planned shareholder meeting on an acquisition by Frontier Airlines, Spirit Airlines said Wednesday evening that it was putting off the vote and would continue to talk to both Frontier and a rival suitor, JetBlue. The postponement, until July 8, was a stunning turn in a battle that analysts say could reshape the airline sector. The decision is a blow to the leaders of Frontier and Spirit, budget carriers that want to combine so they can more effectively compete with the nation’s four dominant airlines. The Frontier stock-and-cash proposal values Spirit at roughly $2.4b, while JetBlue’s all-cash offer totals about $3.6b. There are also competing carrots to investors, like how much the rivals would pay shareholders if regulators blocked the deal — $350m in the case of Spirit and $400m in the case of JetBlue. “This says both marriage proposals are attractive,” said Samuel Engel, a senior VP and airline industry analyst at ICF, a consulting firm. “They want to see what the maximum dowry is that they can get.” Frontier did not immediately reply to a request for comment on Spirit’s announcement. JetBlue’s CE, Robin Hayes, celebrated the postponement, the second time that Spirit has pushed off a shareholder vote on the transaction. “It’s clear that Spirit shareholders have now handed the Spirit board an undeniable mandate to reach an agreement with JetBlue,” Hayes said. Frontier argues that despite its offer’s lower nominal value, the share portion allows Spirit investors to further benefit should shares of the combined company climb. It has also attacked JetBlue’s bid as less likely to win regulatory approval. JetBlue contends that both bids are likely to be scrutinized.<br/>

The prospect of a takeover of Spirit Airlines threatens to upend the cheap-fare end of the industry much like a series of mergers among big airlines reduced choices for travelers. Spirit is the largest budget airline in the United States, but its days as a stand-alone company appear numbered. The big question is whether it is sold to fellow discounter Frontier Airlines or to JetBlue, which operates more like the four giants that dominate the US airline business. Late Wednesday, Spirit delayed a shareholder vote on a merger with Frontier from Thursday until July 8. Spirit said it would use the extra time to continue talking with Frontier and JetBlue Airways about their rival bids for Spirit. The outcome could determine how many choices travelers have for the lowest fares. That’s particularly important to leisure customers, the group that Spirit targets. Spirit shareholders are looking at a stock-and-cash offer from Frontier that is currently worth about $22 per share, or $2.4b, and would give Spirit shareholders 48.5% of the combined airline. Spirit’s board has continued to support the deal in the face of a hostile bid from JetBlue worth $33.50 per share, or $3.6b.<br/>

Aer Lingus cancelled 12 of its flights on Wednesday due to a spike in Covid-19 cases among staff. Return flights from Dublin to Edinburgh, Frankfurt, Lyon, Geneva, Munich and Amsterdam were cancelled. In addition six flights, including a Dublin to Heathrow return service, have been cancelled on Thursday. The airline has apologised and has said it is working to secure alternative travel options for the passengers affected. "Our teams are working to secure alternative travel options for customers in each case and wish to apologise to those impacted for the inconvenience," an Aer Lingus spokesperson said. "Just over 1% of Aer Lingus flights have been impacted by cancellations this month." The company has said that if crew illness requires the cancellation of additional flights in the coming days, it will seek to re-accommodate passengers on the next available services "as efficiently as possible". Aer Lingus also said it "anticipated the return of demand for travel" once Covid restrictions were removed and "built appropriate buffers into our plans in order to deal with a reasonable level of additional disruption". "System pressures and ongoing issues at some airports and among third party suppliers have created considerable operational challenges which have been compounded by a significant spike in Covid cases in recent days."<br/>

Greek airline SKY Express announced Tuesday its new strategic partnership with Emirates. Under the agreement, customers of both airlines will have access to a wider network of destinations available through a single booking. The partnership joins others with Air France, KLM, Delta, Qatar Airways, American Airlines, Cyprus Airways, Condor, El Al, Middle East Airlines and Transavia. Passengers travelling with Emirates from Dubai (DXB) and New York (JFK) to Athens Eleftherios Venizelos International Airport (ATH) will be able to connect to any of the 34 destinations served by SKY Express in Greece. According to the Greek airline, the agreement will further boost the country’s already valued tourism market. The United Arab Emirates airline’s extensive network of destinations globally will help connect travellers from markets such as Australia, India, North America and Southeast Asia.<br/>

AirAsia Philippines aims to expand international capacity aggressively, as it announces the resumption of its Manila-Singapore service. The Manila Nino Aquino service will restart on 1 July, says the carrier. In addition, it aims to build on frequencies to Hong Kong, Kota Kinabalu, and Seoul. Overall, it aims to hit 70% of pre-pandemic international capacity by the fourth quarter of 2022. “Our aggressiveness in expanding our domestic route network also manifests in our resumption strategy for international routes,” says the carrier. “This is in service of Filipino globetrotters and Overseas Filipino Workers who wish to explore the tourism and economic opportunities present abroad.” The carrier adds that the number of outbound international passengers it flew in June was nearly five-times greater than in May. Cirium fleets data indicates that AirAsia Philippines has nine Airbus A320 family aircraft in service, with 15 in storage. The carrier’s reboot of international services aligns with the region’s steady elimination of travel restrictions imposed to stop the spread of coronavirus. Cirium schedules data indicates that ASKs provided by AirAsia Philippines in June were 75% down from June 2019. <br/>

Bonza has given its biggest hint yet that it will start flying in weeks after it said it was seeking 200 cabin crew to start “immediately”. The airline was originally targeting a mid-year launch, but in May hinted that was likely to have slipped back to September. Today’s news seems to confirm the airline’s start date will not slip back any further, or could even come sooner than expected. The new adverts seek customer-facing cabin crew and supervisors to work from its home bases on the Sunshine Coast and in Melbourne. Bonza said candidates would ideally have 12 or more months of experience on B737, Airbus or E-Jets, but would accept those new to the industry. Candidates must also be over 18, able to pass respiratory tests, be proficient swimmers and able to reach up to 180cm. You can find out more and apply here. The development comes after Bonza CEO and co-founder Tim Jordan said demand for jobs at Bonza had exceeded expectations, with the business picking up employees who wanted to jump ship from rivals. Bonza’s push for staff to start straight away comes as Australia’s aviation industry has been grappling with a severe skill shortage spurred on by COVID-19 redundancies and early retirements. The lack of employees was thought to contribute to airport delays at Easter, which were later recognised as the worst since records began.<br/>