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JetBlue raises flight attendant pay, union agrees to support merger with Spirit

JetBlue Airways said it will raise flight attendant pay next year and provide other bonuses to staff while the union representing cabin crews agreed to support the carrier’s plan to acquire budget carrier Spirit Airlines. Starting in November, flight attendants will get 5% raises. Including another 2% raise, a slate of other incentives and previously negotiated raises under flight attendants’ union contract, their raises in 2026 will compound to 21.5% increases, according to a company memo, which was seen by CNBC Friday. The raises come as the New York-based carrier is in the process of trying to acquire Spirit, a merger the Justice Department has sued to block. A trial for that lawsuit is set to begin on Oct. 16 in Boston. JetBlue agreed not to furlough or displace any flight attendants or close any associated bases for seven years after a potential acquisition of Spirit goes through, the memo said. “The current contract was negotiated during COVID, and since then our inflight crewmembers pay rates have fallen below other airlines by a significant margin,” a JetBlue spokesman said in a statement. “Because our inflight crewmembers play a significant role in delivering the JetBlue experience, it’s important that we’re able to attract and retain high-quality crewmembers with competitive pay and benefits.” The union said it would, in turn, support the planned acquisition of Spirit. “With this agreement made by your TWU Local 579 Executive Board and JetBlue, we support the JetBlue and Spirit transaction and will not hold an additional informational picket or speak publicly against the acquisition,” the union said in a note to members. JetBlue also agreed to additional pay for staff that fly the carrier’s trans-Atlantic routes and in its Mint business-class cabin, as well as other incentives, according to a letter of agreement with the Transport Workers Union, which represents JetBlue’s 7,000 flight attendants.<br/>

JetBlue files complaint in US against Schiphol flight curbs

US carrier JetBlue Airways said on Friday it had filed a complaint against the Netherlands and the European Union to the US Department of Transportation over the Dutch government's move to curb traffic at Amsterdam's Schipol Airport. The Dutch government earlier this month said it would move ahead with plans to cap the number of flights at Amsterdam's Schiphol Airport next year to reduce noise, a decision that is fiercely opposed by flag carrier KLM and airline industry groups. "In so doing, the Dutch government stands in flagrant violation of the US-EU Air Transport Agreement," JetBlue said in its complaint. Flights will be capped at 452,500 per year, almost 10% below 2019 levels and lower than a previous proposal of 460,000. The move essentially closed Schiphol to new entrants, JetBlue said. "Carriers with historics at Schiphol are facing a 4% reduction in capacity. New entrants such as JetBlue are facing a completely closed market and 100% expulsion from the market," the company said. "This is not a fair or proportional outcome despite Dutch government assurances otherwise." Airlines that use Schiphol including Air France-KLM (AIRF.PA) have sued to try to prevent the cap at one of Europe's busiest airports. They say it will harm business and violate previous agreements. JetBlue, which has been operating two daily flights between Amsterdam and the US since August, said it had asked the U.S. government to take similar steps against Dutch carriers if no solution could be reached.<br/>

Ecuadorian carrier Equair suspends operations after two years

Ecuadorian carrier Equair has suspended operations just two years after the Latin American airline emerged. Equair, which was established with wholly-Ecuadorian investment, had been using a small fleet of Boeing 737-700s on domestic and regional routes. It states that it has been conducting services that prioritise safety, sustainability and quality, while aiming for profitability. But it adds that, after analysis of the market situation, it has taken the “responsible decision” to “suspend its activities”. Equair says it has communicated the information to more than 200 personnel, and that it will support them during the “separation process”. The airline has reached an arrangement with LATAM Airlines’ Ecuadorian arm to transport passengers booked on Equair flights, as part of a non-profit protection agreement. Equair adds that it has set up telephone inquiry lines for passenger queries. It operated up to 66 weekly frequencies on the main domestic link between Quito and Guayaquil, as well as flights to the Galapagos Islands and the city of El Coca, achieving a 17% market share on itw network. Equair, which emerged at the end of 2021, says it sought to advance national development and create employment. “We look to the future and focus on the new challenges that the world of today holds,” it says, “in a dynamic environment that forces us to adapt to the change in an agile and strategic way.” LATAM Airlines Ecuador says it is offering seats to Equair passengers at “no additional cost” following the “cessation of operations” by the carrier, and in response to a request from Ecuadorian authorities. “Spaces for the protection of Equair passengers will be assigned according to seat availability on the domestic flights operated by LATAM Airlines Ecuador,” it states, adding that it applies to Equair customers booked on flights between 30 September and 31 December.<br/>

Yemen's national airline to suspend flights from Sanaa to Jordan

Yemen's national airline will suspend the only international commercial flight from Yemen's capital Sanaa in response to the Houthi administration blocking the carrier from withdrawing its funds in Sanaa banks, four company executives, speaking on condition of anonymity, told Reuters. Yemenia will halt six weekly flights to Jordan in October, the company officials said, after negotiations with the Houthis failed to secure the release of airline funds which executives at the carrier said amounted to $80m. Yemenia had proposed the Houthi administration take 70% of the funds while the remaining 30% would go to the internationally recognised government, the sources said. The Houthi administration rejected the offer which was when the airline decided to suspend flights to Jordan, they added. Yemenia said that it had been unable to withdraw its funds in Sanaa banks for several months and called on the Houthi authorities to lift restrictions "illegally" imposed on its assets. Reuters could not reach the Houthi Ministry of Transport for comment. Yemenia resumed flights from Sanaa to Amman, Jordan's capital, in April 2022.<br/>

Wizz progressing moves towards Saudi joint venture

Wizz Air has selected a partner and is in the process of an application to establish a joint-venture carrier in Saudi Arabia as the central European budget operator continues to develop its presence in the Middle East. The low-cost carrier launched a string of routes from Europe to Saudi Arabia a year ago, having signed a preliminary agreement with Saudi authorities in May 2022 to investigate the expansion of airline services to the kingdom under the state’s ambitious Vision 2030 programme. Speaking during the World Aviation Festival in Lisbon, Wizz Air president Robert Carey said: ”We are now a year into our Saudi programme, that’s the largest destination announcement we have ever done, 23 destinations. Overall, [we are] very happy with that and the progression we see with these markets, just like we have seen in every other market.” The carrier connects Dammam, Jeddah and Riyadh with points in Europe, as well services services from Abu Dhabi to Dammam and Madinah, Cirium schedules data shows. The carrier established a joint-venture airline to operate its UAE flights, launching Wizz Air Abu Dhabi in early 2021, and has indicated its interest in doing likewise in Saudi Arabia. ”We’ve identified a partner,” Carey says. ”We are in the process over there right now. The regulator has put out an economic licence application process in place. We recently submitted the second part of the application, and we’ll see what happens.”<br/>

Jalan Kalrock Consortium completes capital infusion to revive India's Jet Airways

The Jalan Kalrock Consortium (JKC) said on Friday that it has completed its commitment to infuse 3.50b rupees ($42.14m) in the now-defunct Indian carrier Jet Airways as per a court-approved plan. Earlier this year, India's national company law tribunal allowed the ownership of Jet Airways to be transferred to the consortium of the United Kingdom-based Kalrock Capital and UAE-based businessman Murari Jalan to revive what was once the nation's largest private carrier. "With this infusion... all commitments by JKC now stand fulfilled to take control of the iconic airline," the consortium said in a statement. The Naresh Goyal-founded airline started operations in the early 1990s but ran out of cash in April 2019 and filed for bankruptcy. Jet Airways was also taken to court by its creditors whom it owed about 180b rupees. The airline was the second largest carrier in India by market share at its prime. It was supposed to resume operations by the first quarter of 2022 under its new owners, which however did not happen, leading to speculation that the revival plan could be in limbo. The consortium aims to re-establish the airline's operations from next year and further announcements regarding the launch date of Jet Airways will be made in the coming weeks, according to the statement.<br/>