The US Department of Justice is likely to sue to block a pending $3.8b merger between JetBlue Airways and Spirit Airlines, Politico reported on Friday, citing five people with knowledge of the matter. The DoJ could file a suit as soon as March, according to the report, which added that people in the department's anti-trust division have competing opinions about whether to bring a case. "We continue to work through the regulatory process to demonstrate how this merger will increase competition in the airline industry," JetBlue said in an emailed statement. Spirit did not respond to a Reuters request for comment, while the DoJ declined to comment. Earlier this week, JetBlue officials answered questions and gave depositions as the DoJ pressed on with its anti-trust review. On Feb. 8, Spirit Airlines said it expects US anti-trust regulators to decide whether to allow the low-cost carrier to proceed with the merger in the "next 30 days or so". JetBlue prevailed in a months-long bidding war for Spirit Airlines after the ultra-low-cost carrier accepted its offer in late July. Since then, Spirit shares are down about 20%, while those of JetBlue have fallen marginally.<br/>
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The top attorney at the US Department of Transportation planned to visit Southwest Airlines’s headquarters as part of an investigation into the carrier’s December operations meltdown that affected more than 2m people, according to government emails. DOT General Counsel John Putnam detailed a proposed agenda for the trip in a Jan. 1 email to members of Transportation Secretary Pete Buttigieg’s staff. He called for two days of meetings with various employee groups, including crew scheduling, system operations and customer relations workers. “We believe the trip will be important to see and dig into the details regarding their recovery process and send the right signals reinforcing the extent of our concerns,” Putnam said in the email. The email was among 321 pages of heavily redacted documents released by the FAA Friday, in response to a Freedom of Information Act request. Southwest didn’t immediately comment on whether the visit had occurred or is scheduled. The DOT didn’t immediately respond to email and text messages sent outside of normal business hours seeking comment on the emails. <br/>
Pilots at Hawaiian Airlines have approved a new contract which will give them an average pay raise of 32% over four years. Pilot union Air Line Pilots Association, International (ALPA), said on 10 February that the contract gives flight deck crew “industry-leading rates” for both the passenger segment as well as the airline’s new Airbus A330F cargo fleet, which is set to begin operating this year. Hawaiian had announced in October that it would begin to fly at least 10 of the type for Amazon. The pilots voted in favor of the agreement by 65%, with 93% of eligible pilots casting ballots. The new contract will take effect on 2 March. “This new industry-standard agreement brings us into line with our peers and cements our status as one of the nation’s leading airlines,” says Larry Payne, chairman of ALPA’s Hawaiian pilot group. The agreement includes an immediate 16.6% pay increase on average for pilots at the Honolulu-headquartered company. It also adds a $10m ratification bonus, raises company retirement contributions, creates a new health reimbursement account and increases schedule flexibility, ALPA says. In past weeks, numerous airlines – including JetBlue Airways, Spirit Airlines and Delta Air Lines – have agreed to new contracts that give pilots handsome pay increases amid the ongoing US pilot shortage. Pilot pay at regional airlines has also risen sharply in past months – an attempt by regional carriers to attract more people to the career path, and keep them from moving on to larger mainline carriers. <br/>
Low-cost Colombian airline Viva Air has voluntarily started a local debt restructuring process, the company said late on Friday, as it awaits authorization of its merger with Avianca airlines. Viva Air said in a statement that it made the decision to start the Business Recovery Process (known by the Spanish acronym PRE) due to the challenges from the current economic climate and from the impact of the COVID-19 pandemic. "The company has not been able to access capital during the last nine months since it has not yet been able to finalize its merger with another airline, which is still pending authorization from the National Government," the airline said. "Viva accepts this voluntary recovery process that lasts 90 days, in order to restructure its debts through negotiation with its main creditors to continue operating under sustainable conditions," it added. The airline said it entered the process after much consideration, as it awaits a decision on the Avianca merger. Its financial situation has been aggravated by the rise in fuel prices last year and the devaluation of the Colombian peso. The announcement came after ultra-low-cost airline JetSMART Airlines also announced its intention to buy 100% of Viva Air.<br/>
Saudi Arabia’s national carrier, Saudia, has just launched a one-of-its-kind digital integration system that links transit visas with flight tickets. The service, known as “Your Ticket, Your Visa”, links all international airports in the kingdom, and allows passengers who are on transit to stay for up to 96 hours. During this time, these visitors can travel around Saudi Arabia, and even perform umrah. The digital integration with the Ministry of Foreign Affairs facilitates the issuing of a transit visa, and then links it to the flight ticket within three minutes. The launch of the new service is in line with Saudia’s commitment to promote the King Abdulaziz International Airport in Jeddah and strengthen its role in the region by configuring the airline’s flights coming from the east and departing to the west. The service helps to facilitate travel procedures and coordinates with the Saudi Tourism Authority to provide incentive packages for passengers.<br/>
Skymark Airlines returned to profitability in its nine-month earnings, buoyed by a return of leisure domestic travel demand. In its first earnings disclosure since being re-listed in December, the Japanese domestic operator was Y3.4b ($25.8m) in the black for the nine months to 31 December 2022. This compares to the Y11.3b operating loss it posted in the year-ago period. The airline reported a 75% year-on-year increase in operating revenue to Y62.5b, as it was able to tap into strong leisure and VFR (visiting friends and relative) demand. Skymark notes that in the three months to 31 December, its passenger numbers - at 1.96m - was close to the volume seen in the same period in 2019, its last financial quarter before the coronavirus pandemic. Compared to the October-December in 2018, Skymark says passenger numbers have already exceeded by about 6%. RPKs for the nine months was up 62%, while capacity rose about 19% against 2021. Meanwhile, costs for the quarter rose about 26% year on year to Y59.2b, as variable costs increased with a ramp-up of flying. The airline recently firmed up its orders for Boeing 737 Max aircraft, a move it says will help it to “gradually…gain [slots] in domestic flight routes” at Tokyo Haneda airport, one of the airline’s two hubs in Japan. Its four orders – for two Max 8s and two Max 10s – will enter its fleet from 2026, while another six on lease will be delivered from 2025. At the end of the nine-month period, the airline had a fleet of 29 Boeing 737-800s. Skymark was de-listed in January 2015 following a bankruptcy at the carrier. The carrier was ultimately rehabilited through a plan backed by ANA Holdings, which owns 16.5% in the carrier. <br/>