Southwest Airlines has adopted a shareholder rights plan to defend against a push for a leadership overhaul and other changes by activist firm Elliott Investment Management. Commonly known as a “poison pill,” the plan aims to dissuade what Southwest called “de facto or negative control” of the airline without compensating other shareholders, the airline said in a statement Wednesday. It comes after Elliott in June 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. “The board determined that adopting the rights plan is prudent to fulfill its fiduciary duties to all shareholders,” Southwest Chairman Gary Kelly said in the statement. Southwest said Elliott had built an economic interest equal to about 11% in the carrier, and had not reported its full position in securities filings. Southwest will issue one “right” for each share of common stock under the plan, which runs for one year. When a shareholder or group of investors accumulates 12.5% or more of Southwest’s common stock, holders of those rights will be allowed to purchase additional Southwest shares at a 50% discount to the carrier’s then-current share price, according to the statement. <br/>
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A flight to Manchester, New Hampshire, was diverted Wednesday after a man allegedly exposed himself and urinated in the aisle of the airplane, officials said. The 25-year-old Oregon man was arrested and charged with indecent exposure after the flight landed at the Buffalo Niagara International Airport. He was released after making an initial appearance in federal court in Buffalo, according to a release from the U.S. Attorney’s Office for the Western District of New York. The American Eagle flight departed from Buffalo shortly after the incident, according to an emailed statement from American Airlines. “We thank our team members for their professionalism and our customers for their understanding,” read the statement. The man told officers he was flying from Portland, Oregon, to Manchester and had several whiskey and colas before boarding the flight, and then more of them during a layover in Chicago and after boarding there. He said he got up to use the restroom and was coming back to his seat, but he has a medical urination problem, according to the criminal complaint.<br/>
WestJet says its operations have "stabilized" following a mechanics' strike last weekend that led to hundreds of cancelled flights, affecting thousands of customers. The Calgary-based airline said in an update Wednesday it now expects "minimal" future cancellations in relation to the job action. Still, it advised guests with imminent travel plans to check the status of their flight prior to leaving for the airport. WestJet had to park 72% of its fleet after mechanics announced a surprise strike Saturday. The strike ended Sunday, but the Calgary-based airline had warned Monday that disruptions would continue for several days. The airline said it had cancelled 1,171 flights across Canada as a result of the strike as of Wednesday, including 79 on Tuesday and 30 on Wednesday. It expects eight flights to be cancelled Thursday. "WestJet's operations have stabilized, with the airline projecting minimal future cancellations in relation to the labour events impacting July long weekend," the company said in a release Wednesday. The strike ended late Sunday after an agreement was reached with the Aircraft Mechanics Fraternal Association, though the airline warned the impact would be felt for several days.<br/>
A Regina couple who were paid $800 in compensation from Sunwing Airlines are now being taken back to court as the airline seeks to overturn the decision. According to the original decision(opens in a new tab), the Canadian Transportation Agency (CTA) ordered Sunwing Airlines to pay $800 to Mickey and Donna Anslow after their return flight to Regina from Cancun was delayed in March of 2020. However, Sunwing Airlines is now fighting the decision on the grounds that a safety issue caused the delay. According to the Air Passenger Protection Regulations, if a delay is required for safety reasons, the airline is not obligated to pay compensation. Kristine D’Arbelles, the senior director of public affairs for CAA national spoke with CTV News on the topic. “I think anyone would agree that you wouldn’t wanna get on a plane that is not safe ... However, it is a very grey area and that definition of safe has been known to be stretched by airlines which is why we're seeing this in battles right now in court,” she explained. She went on to express that CAA has been calling for more clarity as to when passengers are or aren’t entitled to compensation. “We were supposed to see some changes coming in the winter, that turned into the spring and here we are in the summer and the changes haven’t come. We’re getting worried, we really do hope that those changes do come because the added clarity is just gonna make this system that much stronger and better for travellers.” Currently the process of receiving compensation involves reaching out to the airline and waiting 30 days before taking the matter up with the CTA.<br/>
Aer Lingus pilots will vote on what will be crucial Labour Court proposals to end their pay row with the company, their trade union leader confirmed on Wednesday. The carrier announced that it would cancel 76 further flights from July 8th to 10th to combat a work-to-rule by members of the Irish Air line Pilots’ Association (Ialpa) as the Labour Court began its fourth bid to resolve the dispute. Both sides said the court would issue a recommendation aimed at brokering industrial peace at the airline “within a few days” following a hearing that lasted more than 3½ hours on Wednesday afternoon. Capt Mark Tighe, Ialpa president, confirmed afterwards that the union would ballot its members in Aer Lingus on any Labour Court recommendation. Before the talks, he warned that pilots would “stand their ground against their employer” if this latest bid to break the deadlock fails. Labour Court recommendations are not binding, so both sides in a dispute can accept or reject them. Ialpa members voted against interim proposals put forward by the court in May.<br/>
Wizz Air Holdings Plc President Robert Carey has departed the airline, paving the way for promotions of three executives across the Hungarian budget carrier. Chief Operations Officer Michael Delehant will become senior chief commercial and operations officer, while Diarmuid O’Conghaile, the managing director of Wizz Air Malta, will become chief operating officer, Wizz said in a statement. Head of Operations Control Mauro Peneda will be taking on O’Conghaile’s role at Wizz Air Malta. Carey, who joined in June 2021 as president, has left the airline to “pursue other interests,” Wizz said. He previously worked at Delta Air Lines Inc., EasyJet Plc and America West Airlines. CEO Jozsef Varadi will be in charge of commercial leadership responsibilities for the next three months, according to Wizz. The executive’s departure “may intensify scrutiny on the prospect of Wizz recovering pre-pandemic margins over time,” wrote Neil Glynn, managing director of research firm Air Control Tower in a note to clients. Still, “Wizz Air is no stranger to C-suite turnover under the constant presence of CEO Varadi, for example, with multiple CFOs occupying the role since IPO in 2015.” <br/>
Icelandic budget carrier Play has named Ruta Dabasinskaite-Vitke as its new chief financial officer, succeeding Olafur Thor Johannesson. Dabasinskaite-Vitke will join the airline in August. She was previously the finance chief of Bluebird Nordic, a freight carrier which discontinued operations at the end of April. Her career also included serving as chief executive of TD Baltic, which specialises in distribution of IT and consumer goods. “She brings a wealth of experience from the international aviation industry which will be a significant advantage,” says Play chief Einar Orn Olafsson. Play disclosed in April that her predecessor Johannesson had resigned, having played a key role in steering the airline’s fundraising exercise in the first quarter.<br/>
As we wait patiently for Air New Zealand’s latest blockbuster safety video, one of its rivals has made a subtle dig at airlines who create flashy instructional films. Emirates has released its first new safety video in seven years, and it sets the tone straight away. “This is your no-nonsense safety video. We do not have dancers breaking into song, characters from movies, or celebrities trying to be funny, I’m afraid,” proclaims the flight attendant. The video then goes through all the instructions in just under four minutes with minimum fuss. Feedback has been generally positive. “Excellent video. No fuss, no faff, just informative and not distracting,” wrote one commentator. “This is the best safety video. Clear and simple,” was another. Air New Zealand is famed for its safety videos, but it’s not the only carrier who adds some pizazz to its briefings.<br/>
Pakistan plans to retain a stake in state-owned Pakistan International Airlines to benefit from an increase in value after the sale. The nation plans to schedule the date for the final bidding in 10 days, Usman Bajwa, secretary at the Privatisation Commission said at a news briefing in Islamabad. The nation’s asset sale agency plans to offer at least 51% stake in Pakistan International Airlines to the six shortlisted groups. The airline has failed to make a profit in almost two decades. The sale is a step toward the government’s goal to undertake economic reforms agreed with the International Monetary Fund for a bailout. Previous attempts to sell the airline have failed. The nation plans to sell ten companies including power distributors within a year, according to the privatization ministry. The government is also seeking initial bids for New York’s Roosevelt Hotel, which it owns and may be an outright sale, joint venture or a long-term lease. Pakistan last month selected six groups to bid for the airline, which include tycoon Arif Habib and a consortium led by the Yunus Brothers Group. Pak Ethanol Pvt.’s consortium includes Switzerland’s Swiss Aviation Group AG, Austria’s Airport Competence GmbH and Australia’s Pearl Asset Management.<br/>
Air Vanuatu might justifiably be described as a hard sell. The collapsed airline’s accounts are years out of date, half the fleet is in disrepair, there aren’t enough funds to repay creditors and that’s just the start of it. But despite all those drawbacks, there’s still buyer interest. The national carrier of Vanuatu, a South Pacific nation that’s home to little more than 300,000 people — about the same as the US city of Cincinnati — has become an unlikely investment target since liquidators at Ernst & Young took over in May. Several parties have submitted offers, according to Ernst & Young, while Australia, which has a bilateral security agreement with Vanuatu, has said it’s monitoring the situation. The appeal of a failed state asset like debt-ridden Air Vanuatu, which finally buckled after Covid and cyclones decimated the country’s tourism industry, is a telling reflection of geopolitical tensions in the Pacific, where countries including China and the US tussle for leverage. Whoever rescues Air Vanuatu would expect access to — and influence over — the Vanuatu government, according to Tess Newton Cain, a Brisbane-based adjunct associate professor at Griffith Asia Institute. “That’s all part and parcel of international diplomacy,” she said. “Airlines are critical infrastructure.” Amid escalating tensions in Asia, small Pacific nations have gained outsized clout. China has become one of their biggest lenders, part of an effort to build a network of developing countries to take its side in global forums such as the United Nations. Export-Import Bank of China accounted for 30% of Vanuatu’s public debt in 2022, according to the International Monetary Fund. Pushing back, Australia has sought closer ties with Vanuatu and other regional neighbors.<br/>