A second major Southwest Airlines investor has joined the call for a shakeup in the carrier’s board and executive leadership team, upping the pressure for change. Artisan Partners Limited Partnership, Southwest’s ninth-largest shareholder, urged the board in a letter on Wednesday to “reconstitute itself and upgrade company leadership” in order to fairly assess the path forward for the airline. “We believe this process needs to commence immediately,” Artisan said in the letter. Artisan becomes the second Southwest investor to call publicly for major changes at the carrier due to frustrations with the company’s lagging financial performance and insular corporate culture. It joins activist Elliott Investment Management, which on Monday publicly disclosed a $1.9b stake in the airline and demanded new leadership and a revamp of Southwest’s business to better compete with other airlines. Artisan’s letter came hours after Southwest Chief Executive Officer Bob Jordan said he would resist Elliott’s call to step down as the company considers a variety of changes to improve its performance. “I have no plans to resign,” Jordan told reporters Wednesday following an appearance at an aviation event in Washington. “My 150% focus is on supporting our employees, doing good for our customers and executing the wonderful plan we have to get better.” The remarks were Jordan’s first since Elliott publicly revealed its stake, making it one of Southwest’s biggest shareholders. Elliott also demanded an overhaul of the airline’s strategy and specifically criticized Jordan and Executive Chairman Gary Kelly for poor execution and a “stubborn unwillingness to evolve the company’s strategy.”<br/>
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Southwest Airlines’ CEO is resisting pressure to step down after activist firm Elliott Investment Management took a $1.9b stake and called for new leadership at the carrier. “I have no plans to resign,” Bob Jordan told reporters Wednesday following an appearance at an aviation event in Washington. “My 150% focus is on supporting our employees, doing good for our customers and executing the wonderful plan we have to get better.” The remarks are Jordan’s first since the activist firm publicly revealed the stake on Monday, making it one of Southwest’s biggest shareholders. Elliott also demanded an overhaul of the airline’s strategy and specifically criticized Jordan and Executive Chairman Gary Kelly for poor execution and a “stubborn unwillingness to evolve the company’s strategy.” Southwest executives haven’t yet met directly with Elliott, but “like any investor, we’ll engage them,” Jordan said. “We want to understand what their ideas are.” The activist chided Southwest for having “written off” streams of revenue that rivals have broadly adopted in the last 15 years, such as offering a bare bones basic economy fare and charging customers for checked luggage. Before Elliott disclosed its stake, Southwest had already opened the door to possibly changing some long-held aspects of its business model, such as adopting assigned seating. <br/>
US carrier JetBlue Airways intends to start operating from Long Island MacArthur airport in October, reinforcing and diversifying its presence in the New York metropolitan area. JetBlue disclosed on June 11 that it plans to launch its first-ever flights from Long Island to three cities in Florida, with daily service to Orlando and four-times weekly service to Palm Beach starting on 24 October. Four-times weekly flights to Fort Lauderdale will begin the following day. New York-basedJetBlue’s network is focused heavily in the Northeastern USA, with busy operations out of John F Kennedy, LaGuardia and Newark Liberty international airports. ”By the end of 2024, JetBlue will serve more than 80 nonstop destinations and offer an average of over 200 departures per day from New York City,” the carrier says. Dave Jehn, JetBlue’s vice-president of network planning and airline partnerships, calls Long Island an “integral part of the New York metro area”, while local leaders tout the less-trafficked airport as a more convenient alternative to JFK and LaGuardia.<br/>
The union representing mechanics at WestJet says members voted overwhelmingly to reject a tentative agreement with the airline. The Aircraft Mechanics Fraternal Association, which represents some 670 aircraft maintenance engineers and other skilled trade positions at the carrier, says about 97% of its members cast a ballot against the deal. WestJet says the result does not affect operations, but company president Diederik Pen called the result "deeply concerning." Pen says the deal would have made employees the best-paid airplane mechanics in the country after "challenging" negotiations toward their first collective agreement. In a release on Tuesday, union president Bret Oestreich disputed that claim, stating that WestJet's final offer was more than 30% below the prevailing rate at North American carriers. The union has cited wages, outsourcing, scheduling and layoff protection as central issues in the bargaining process. Oestreich also said his members reported feeling that the airline engaged in bad faith bargaining. The two sides reached a tentative deal on May 6, two days after WestJet issued a 72-hour lockout notice to mechanics following their announcement of a strike vote.<br/>
The prospect of major disruption to Aer Lingus services over the coming weeks has increased after pilots at the airline voted by a large margin in favour of industrial action in a dispute over pay. In a ballot that concluded on Wednesday afternoon, 98% of members of the Irish Air Line Pilots’ Association (Ialpa) who voted indicated they were in favour of industrial action, up to and including a strike, in support of their claim for increases totaling 23.8% over three and a half years. The turnout was also said to be 98%. Talks between the two sides continued on Wednesday evening, however, and the union’s executive has not yet made any decision on the nature or timing of any industrial action in the event they produce a deal. Ialpa president Mark Tighe said the union would announce what action it might take “in due course” but said he hoped the company’s management would “come to its senses”. “The result of this ballot shows the resolve and determination of our members to get a fair share of the large profits that Aer Lingus are making,“, said Mr Tighe. He said pay at the airline had failed to keep pace with that at airlines like British Airways, Lufthansa and Virgin Atlantic in recent years.<br/>
Wizz Air has been ranked the worst airline for UK flight delays despite a surge in fares, an investigation has found. The low-cost carrier’s departures from UK airports were an average of 31 minutes and 36 seconds behind schedule in 2023, according to analysis of Civil Aviation Authority (CAA) data by the PA news agency. This was a reduction of nearly a third compared with 2022, but means the airline recorded the worst punctuality for UK flights for three consecutive years. Wizz Air said it has made “significant improvements” but acknowledged there is “still work to be done”. Turkish Airlines recorded the second worst punctuality last year, with an average delay of 28 minutes and 36 seconds. This was followed by Tui (28 minutes and 24 seconds), Air India (28 minutes and 12 seconds) and Turkish low-cost carrier Pegasus Airlines (25 minutes and six seconds).<br/>
Malaysian budget carrier AirAsia is undergoing a major restructuring led by its parent company, Capital A, as it starts to regain momentum following the pandemic. The restructuring of the regional airline, announced in April, would consolidate its short-haul and long-haul brands, seeking more efficient operations as the group faces growing competition. Capital A's shareholders are expected to hear the latest updates Thursday at its annual general meeting. According to the plan, Capital A would divest 100% of its shares in its two short-haul subsidiaries to a new company, AirAsia Group, for 6.8b ringgit ($1.4b). Capital A would receive AirAsia Group shares, retaining direct ownership of 18.39% in the new company. The new company would also hold shares in AirAsia X, AirAsia's sister company that offers long-haul services, and succeed AirAsia X's listing status on the local stock exchange. "I believe this proposed divestment is a unique and time-sensitive opportunity to elevate our aviation business to the next level," Capital A CEO Tony Fernandes said in a letter to the shareholders ahead of the meeting. Fernandes owns only 0.04% of Capital A shares himself but indirectly controls 24.10%. Fernandes, who recently deferred his retirement plan and signed a five-year contract to serve as Capital A CEO, emphasized that the restructuring would drive growth across Capital A's nonairline businesses like digital services and logistics. The proposals are expected to be completed by the third quarter of 2024.<br/>
Airbus is closing in on a large single-aisle jet order from Cebu Pacific Air, with the carrier planning to sign up for as many as 150 A320neo aircraft that would more than double the Asian airline’s fleet size. A deal would include about 50 optional purchases, according to people familiar with the negotiations. Philippines-based Cebu and Airbus may announce the accord at the Farnborough Air Show later next month, said one of the people, who asked not to be identified because the discussions are confidential. Cebu Pacific — controlled by tycoon Lance Gokongwei and his family’s conglomerate JG Summit Holdings Inc. — has previously said it’s in the market for about 100 single-aisle planes and options for a further 50 as part of a major expansion. CEO Mike Szucs said earlier this year that Boeing Co. “had a reasonable chance” of also being considered for the purchase, given that Airbus’s popular single-aisle family is sold out until the end of the decade. Representatives for Cebu, Airbus and Boeing declined to comment. The people cautioned that no deal has been formally signed, and that details of an agreement and the timing could still change. <br/>