Spirit Airlines is on shaky footing after JetBlue Airways’ proposed $3.8b takeover of the budget carrier was blocked by a federal judge this week. Industry-watchers say the carrier could be forced to cut its already low fares even more. Some Wall Street analysts argue the discount carrier could have to restructure, if not liquidate. Spirit’s shares fell 47% after the decision was issued Tuesday. They were down another 22% on Wednesday, notching a new record low of $5.74 a share, before recovering slightly. Spirit, whose last profitable year was 2019, had challenges even before the ruling: It’s navigating groundings of some Airbus narrow-body jets for Pratt & Whitney engine issues, and it’s facing softer-than-expected demand in the wake of the pandemic, along with higher costs. The carrier could look for another buyer, “but a more likely scenario is a Chapter 11 filing, followed by a liquidation,” said Helane Becker, an airline analyst at TD Cowen, in a note. “We recognize this sounds alarmist and harsh, but the reality is we believe there are limited scenarios that enable Spirit to restructure.” A potential bankruptcy could force the airline, known for its low fares and fees for everything else like seat selection and cabin baggage, to slash fares even more. “We may see some shocking prices on major Spirit routes as the carrier tries to bring as much cash in the door as possible,” Becker wrote.<br/>
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Wizz Air has paid out more than GBP1m in extra compensation owed to customers after the UK’s aviation regulator ordered the airline to revamp the way it deals with complaints. The Civil Aviation Authority last July forced Wizz to review a swath of compensation claims after investigating “a high volume of complaints about the airline”, particularly during a period of major travel disruption in 2022. The CAA said it had “significant concerns” that the airline had not paid passengers what they were owed and had “failed to meet its passenger rights obligations”. As a result, on Tuesday the regulator announced that London-listed Wizz had paid out an extra GBP1.24mn in compensation to 6,000 customers, after it re-examined more than 25,000 claims involving UK flights from March 2022. The regulator cannot at present fine airlines, and has long called for tougher powers. Yet the enforcement action against Wizz represented an unprecedented intervention, marking the first time it has made such an order for a carrier to review complaints. The claims that the CAA ordered Wizz to review relate to the airline’s requirement to provide alternative flights, as well as care and assistance such as covering hotel costs. “While we welcome the steps taken by Wizz Air after falling short in its treatment of disrupted passengers, airlines should routinely look after passengers and uphold their rights when flights are delayed and cancelled,” said Paul Smith, consumer director at the CAA. Wizz said it had “fully complied” with the CAA’s requests and has invested GBP90m in improving its operations. Like many other airlines, Wizz suffered a string of delays and cancellations in 2022 as the aviation industry struggled to cope with a sudden surge in passenger numbers after pandemic-era travel restrictions were lifted.<br/>
South Korean budget airline Jin Air Co. said Wednesday it posted record earnings in 2023 on strong demand, shaking off the fallout of the coronavirus outbreak. Net income came to an all-time high of 135.8b won ($101m) on a separate basis last year, the first black ink in five years, the low-cost carrier unit of top full-service airline Korean Air Co. said in a regulatory filing. Sales also hit a record high of 1.28t won, up 115% from a year earlier and even up 40.3% from 2019 just before the pandemic outbreak. The airline swung to an operating profit of 181.6b won last year, which was also the first surplus in five years. Its operating margin, or the ratio of operating income to sales, amounted to a new high of 14%. Jin Air's stellar performance was driven by a spike in the number of passengers. Government data showed some 9.83m people used Jin Air flights in 2023, an all-time high and 113% of the 2019 level.<br/>
Hong Kong startup carrier Greater Bay Airlines Co.’s plans to challenge the dominance of Cathay Pacific Airways Ltd. have been thrown into disarray, with delivery of an order of Boeing Co. Max 9 jets likely to be delayed after the mid-flight panel blowout on an Alaska Airlines flight. Greater Bay is midway through a yearlong process to prove to Hong Kong’s Civil Aviation Department that the Max 9 jet is airworthy. However, after the Jan. 5 near-disaster when a door plug panel blew out not long after takeoff, the US Federal Aviation Administration has grounded most Max 9 jets, a measure it intends to keep in place until extensive inspections are complete. “What has happened isn’t helping the process,” Greater Bay’s CEO Stanley Hui said in an interview. Work on Hong Kong’s certification process “has to be deferred, maybe it will take a longer time for that to be completed,” he said. Greater Bay will be the first local airline to operate any of the trouble-plagued Max family of planes. Hong Kong’s CAD said it would monitor the Alaska Air probe “and may consider imposing additional requirements when more relevant information becomes available” from the investigation and Boeing. Boeing declined to comment. Greater Bay announced the original deal for the Max 9s, along with a commitment to five 787s, with great fanfare in March 2023, with Boeing executives including Commercial Airlines CEO Stan Deal flying to Hong Kong for the event. The 15 Max 9 jets are essential to Greater Bay’s expansion plans, and its effort to compete effectively with Cathay in flying from Hong Kong to regional Asian cities, some of the busiest international routes in the world.<br/>
A passenger was trapped in the toilet of an airliner for nearly two hours on a commercial flight in India after its door lock malfunctioned. The passenger was flying on a SpiceJet flight from Mumbai to Bengaluru city on Tuesday. He went to the toilet after the seat belt sign went off following take-off but was stuck for more than 100 minutes because of a “malfunction in the door lock”, the airline said. He was released after the plane landed in Bengaluru airport and engineers were called. He was taken for a medical check-up for suspected trauma. “Throughout the journey, our crew provided assistance and guidance to the passenger,” budget airline SpiceJet said. “The passenger is being provided a full refund,” a SpiceJet representative said. The crew tried to open the door but after failed attempts, they wrote a note asking him to not panic and passed it under the door.<br/>
A snake has been discovered on an AirAsia flight from Bangkok to Phuket, sparking concern among passengers. The Blanford’s bridle snake was spotted above the overhead compartments on the AirAsia Airbus A320 plane on January 13 as the plane was preparing to land at Phuket airport. After it was discovered, some passengers vacated their seats, while others filmed the reptile. One TikTok video of the incident has amassed more than 3.4m views since it was posted. In the footage, a member of the cabin crew is seen trying to catch the snake inside an empty water bottle, and it is later pushed into a plastic bag. Local media reported that the snake was stowed safely until landing, and that staff at Phuket International Airport boarded the flight to search all luggage for other snakes. None were found. Kristina Galvydyte, who used to work as a flight attendant for a leading UK airline, said: “Considering the snake was so small and found in the overhead lockers, where passenger bags are, the only logical explanation here would be it got into a passenger’s suitcase before travelling, therefore ending up on the plane. Snakes are quite common in Thailand, so it’s not an unusual animal to find hiding in people’s homes. However, the snake clearly went through airport security in someone’s luggage with no issues, so that should definitely be investigated further on how it happened.”<br/>