unaligned

JetBlue Airways orchestrated a campaign to flood the government with thousands of online comments from employees in favor of the airline’s bid to merge with Spirit Airlines Inc. The campaign, which included a pre-written form in support of the merger, generated roughly 90% of the more than 10,000 comments on the Transportation Department’s public comment page. The comments are identical and are identified as coming from JetBlue and Spirit crew members who wrote that they believe the $3.8b merger will improve their lives, according to a Bloomberg News review of the database. More than a dozen JetBlue employees interviewed by Bloomberg said that they either didn’t consent to having their names used publicly or didn’t understand that the form would lead to a public comment in support of the merger. Some said they didn’t believe they had completed a form. “It would be out of character for me to make any public statement about impending business transactions by my employer,” said Jordan Onorato, a JetBlue employee, in a phone interview. He said he had no idea that his name was being used in support of the merger. A JetBlue spokeswoman said those who filled out an online form at the request of the company’s CE were informed how it would be used. Emily Martin, the spokeswoman, said the airline received an “overwhelmingly positive response” from crew members about the merger and set up a tool to drive comments toward the Transportation Department as well as the Justice Department. The two agencies have come out against the merger. It’s not uncommon for US airlines to ask employees to email or call members of Congress to lobby on behalf of a particular issue, sometimes providing suggested wording or forms that could be filled out. Carriers used such an effort to help secure $54b in federal aid during the pandemic. Tyesha Best, president of the Transport Workers Union local that represents 6,800 JetBlue flight attendants, said no one they had spoken with realized that a February email from JetBlue CEO Robin Hayes encouraging employees to support the transaction would lead to a public comment with the federal government. The union opposes the merger, saying that JetBlue hasn’t offered its workers enough information about how it will impact their jobs going forward.<br/>

JetBlue Airways has unveiled new perks for less-frequent flyers who are striving for elite status, the latest carrier to rethink its loyalty program to reflect shifting travel habits. The new system establishes more incremental steps to earn perks, including the choice of early boarding (barring basic economy ticket holders), priority security screening, an alcoholic drink on board, or bonus frequent flyer points, every time a customer earns 10 so-called tiles. A customer earns one of those tiles for every $100 they spend on JetBlue and its travel booking platforms, or on flights operated by its partner in the Northeast U.S., American Airlines. Customers can also earn a tile by spending $1,000 on a JetBlue credit card. The changes are part of JetBlue’s larger overhaul of its TrueBlue program, which the carrier announced Wednesday.<br/>

South Florida start-up carrier Global Crossing Airlines (GlobalX) reported a modest first-quarter loss of $6m as long turnaround times for heavy maintenance kept some of its aircraft grounded throughout the period. GlobalX posted a $4.8m loss during the same three months of 2022. The Miami-based carrier said on 10 May that revenue for the quarter was $32.2m, up from $16.4m last year. Ed Wegel, CE of GlobalX, said that the company “performed exceedingly well in a tough operating environment with continued delivery delays of aircraft out [for] heavy maintenance and the deferral of certain government contracts”. Specifically, the carrier says it lost some $6m during the quarter due to the deferral of a ”major US government contract” from January to May. GlobalX adds that “significant scheduled maintenance” resulted in “reducing the effective fleet by two aircraft” every month during the first quarter. However, the company anticipates a much lighter aircraft maintenance schedule during the second half of 2023. Of the charter operator’s quarterly accomplishments, Wegel says: “We finished all requirement for the major certifications we need to continue to grow, started revenue cargo operations, and built the infrastructure of people and systems to fly a very heavy flying schedule for the second half of 2023 – specifically, adding over 25 pilots and 36 flight attendants.” GlobalX has already signed contracts to fly 12,827 block hours this year – and expects to add 10,000 more hours, subject to aircraft deliveries – compared with the 10,615 block hours the carrier flew in 2022. Also during the quarter, GlobalX signed agreements to operate its aircraft on behalf of TUI Fly Netherlands, Allegiant Airways and Red Way, a new low-cost carrier based in Lincoln, Nebraska. It also received approval to operate freighters in the USA, and launched cargo service with its first Airbus freighter earlier in the year. “The company remains very bullish on 2023 with its cargo certification completed and its first freighter having started revenue operations in the first quarter,” Wegel says. <br/>

Virgin Atlantic has pushed back forecasts for a return to profitability, as rising costs hampered its ability to capitalise on a sharp rebound in air travel. The airline, owned by billionaire Sir Richard Branson’s Virgin Group, said on Wednesday that it expected to turn a profit in 2024, after predicting last year it would be “sustainably profitable” in 2023. The airline reported a loss before tax of GBP342mn for 2022, an improvement on the GBP468mn loss it posted the previous year. The announcement underlines Virgin’s longstanding troubles and sets the airline apart from its rivals, which have recently welcomed a return to profitability after Covid-19 restrictions on international travel were eased last year. British Airways owner International Airlines Group in February put two years and E10b of losses behind it to report an operating profit of E1.3b for 2022. Virgin’s passenger numbers almost quadrupled last year, lifting revenues to GBP2.9b, or 98% of pre-pandemic levels. However, profitability had been hit by “persistent high inflation” and a weaker than expected pound, said CFO Oliver Byers. He added that the rapid rise in interest rates, as central bankers sought to control inflation, had also increased the cost of repaying Covid-related debts. After being denied access to government funds, Virgin was forced to raise more than £1bn from the private sector. Byers said Virgin did not expect to be “that far away” from profitability by the end of 2023, when it was forecasting record earnings before interest, taxes, depreciation and amortisation. He said the airline would not need to implement further cost-cutting plans to deliver a profit. <br/>

Air Arabia, a leading low-cost carrier operator in the Mena region, has reported a net profit of AED342m ($93m) for Q1 of 2023, an increase of 17% compared to AED291m registered in Q1 2022. In the same period, the airline posted a turnover of AED1.42b, a 27% increase in turnover compared to Q1 last year. Air Arabia’s strong performance in the first quarter of 2023 reflects the airline’s ability to constantly deliver solid performance while navigating through challenging trading environments. More than 3.9m passengers flew with Air Arabia Group between January and March 2023 across the carrier’s seven operating hubs in the UAE, Morocco, Egypt, Armenia and Pakistan, an increase of 59% compared to a total of 2.4m passengers carried in the first quarter of last year. The airline’s average seat load factor – or passengers carried as a percentage of available seats – during the first three months of 2023 stood at an impressive 85%, up 8% compared to the same period last year.<br/>

Israeli operator Israir Group has received a “positive indication” from shareholders in Smartwings regarding its proposal to take over the Czech airline. Israir Group has been pursuing an acquisition of Smartwings for several months and is trying to seal a binding agreement for the carrier. Its proposal has centred on an E8m purchase of Smartwings share capital, with further funding to repay loans from the carrier’s owners, giving an overall transaction value of E44m. Smartwings operates a fleet of Boeing 737s – comprising several variants including the Max 8 – and has bases in a number of European cities including Prague, Warsaw and Budapest. Israir Group, which uses Airbus A320s, says an acquisition will enable it to expand its destination network and take advantage of synergies. But it stresses that it still cannot quantify its chances of completing the proposed takeover, and adds that a deal remains conditional on multiple elements including shareholder agreement, regulatory approval, and the ability to raise capital required for the transaction.<br/>

Go Airlines (India) was granted bankruptcy protection on Wednesday, bolstering the country's fourth largest carrier's chances of getting back on its feet, but lessors have started mounting legal challenges to repossess planes. The low-cost carrier, recently rebranded as Go First, was plunged into financial crisis this year, sparked by what it called "faulty" Pratt & Whitney engines that grounded about half its 54 Airbus A320neos. The US engine maker, part of Raytheon Technologies, in a statement said Go First's allegations were "without merit". In granting bankruptcy protection, the National Company Law Tribunal in New Delhi ordered a moratorium on Go First's assets and leases and appointed Abhilash Lal of Alvarez & Marsal as the interim resolution professional to take over management with immediate effect. The resolution professional "shall ensure that retrenchment of employees is not resorted to as a matter of course", the tribunal's 41-page order said. Go First has a staff of around 7,000. The U.S. engine maker, part of Raytheon Technologies, in a statement said Go First's allegations were "without merit". In granting bankruptcy protection, the National Company Law Tribunal in New Delhi ordered a moratorium on Go First's assets and leases and appointed Abhilash Lal of Alvarez & Marsal as the interim resolution professional to take over management with immediate effect. The resolution professional "shall ensure that retrenchment of employees is not resorted to as a matter of course", the tribunal's 41-page order said. Go First has a staff of around 7,000.<br/>

Pratt & Whitney plans to oppose Go Airlines' push to enforce an arbitration ruling against the US company for the supply of spare engines, a Delaware court filing showed. The airline, widely known as Go First, approached the Delaware court after it won an arbitration order in Singapore against Pratt & Whitney, which it said failed to supply engines on time. That, the Indian airline argues, has also forced it to file for bankruptcy in New Delhi.<br/>

Philippine Airlines on Wednesday said it had ordered nine long-haul, wide-body jets from Airbus as the Southeast Asian carrier beefs up its fleet following a turbulent pandemic that forced it into bankruptcy protection in 2021. As the company and the wider travel industry recover from coronavirus-induced turmoil, Philippine Airlines said in a statement that the nine A350-1000 jets will be operated on nonstop flights from Manila to North America, including the US East Coast and Canada. It also secured rights to buy three more "to allow future expansion to new long haul destinations," including Europe. A Philippine Airlines spokesperson declined to give the value of the deal. In 2018, an A350-1000 cost an average of $366.5m, based on list prices. Airbus has since stopped publishing list prices. Airbus will deliver the jets starting from the fourth quarter of 2025 until 2027, Philippine Airlines said. The airline ended 2022 with 81 aircraft, according to PAL Holdings, its Manila-listed parent. "The A350-1000 combines greater range capability with the higher capacity we need to serve future demand," said Philippine Airlines President Stanley Ng, son-in-law of tycoon Lucio Tan, who controls the flag carrier. "It's the perfect aircraft to enable PAL to meet its expansion plans in a sustainable way, while offering passengers the highest levels of onboard comfort." Philippine Airlines reported an operating income of $297.2m last year, the first positive full-year performance since 2019. Consolidated revenue more than doubled to $2.57b after it flew 9.3m passengers, up 214% from 2021. Philippine Airlines struggled during the height of the pandemic. In 2021, the company filed for Chapter 11 bankruptcy protection in New York, a move that facilitated debt and fleet reduction. It exited the court-backed restructuring later that year.<br/>

Planning for Virgin Australia's upcoming initial public offering (IPO) is "well advanced", Chairman Ryan Cotton said on Wednesday in an internal email that also outlined bonus payments to the airline's shareholders and staff after a return to profit. Cotton said Australia's second-biggest airline was days away from finalising a capital return. Investors led by US private equity firm Bain Capital will share a A$730m ($495.16m) payment, according to a source who was not authorised to speak publicly. It will be structured as a capital reduction rather than a dividend, with Bain Capital taking around 90% followed by Richard Branson's Virgin Group with 5% and the rest going to the remaining shareholders, the source added. A Virgin Australia spokesperson confirmed the contents of the internal email. A Bain Capital spokesperson declined to comment. The airline had sought up to A$450m of loans for the capital return, Reuters reported in March. The rewards to staff and shareholders come as Virgin Australia, the key domestic rival to Qantas, prepares for what is likely to be one of the country's biggest listings this year. "I can also confirm the IPO planning is well advanced," Cotton said in the email to staff seen by Reuters. "While there is still no date set and our ultimate window of opportunity will depend on market conditions, we are hopeful this process will progress over the coming quarters," he added. Virgin Australia CE Jayne Hrdlicka said on Monday that she would take several weeks of leave to spend time with family after the death of her husband from cancer.<br/>