Spirit Airlines’ efforts to restructure its debt and avoid filing for bankruptcy have hit a snag after months of talks with bondholders failed to result in a deal, according to people with knowledge of the matter. The struggling air carrier is seeking new financing from its creditors, as well as an exchange that would extend its current debt, said the people, asking not to be identified because the talks are private. Terms that still need to be worked out include which assets bondholders would have a claim on and how much new financing would be provided, one of the people said. Without a deal, the company would be forced into bankruptcy, said the people. While a Chapter 11 filing isn’t imminent, a near-term filing would pose challenges as it would be unclear who would take control. The Wall Street Journal earlier Thursday reported that Spirit and bondholders have held discussions over the terms of a potential bankruptcy. Representatives for Spirit as well as advisers Davis Polk & Wardwell and Perella Weinberg Partners didn’t respond to requests seeking comment after normal business hours. Spirit has been seeking a financial lifeline ever since a federal judge in January blocked its proposed sale to rival JetBlue Airways Corp. on antitrust grounds. The company has until Oct. 21 to reach a deal to extend or refinance bonds due 2025 in order to maintain a key partnership with US Bank concerning its loyalty credit card, according to a filing. The card is a part of the collateral package backing the upcoming maturities. <br/>
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Southwest Airlines shares are climbing after board member and billionaire co-founder of InterGlobe Aviation Ltd., Rakesh Gangwal, purchased about $107m worth of the company’s stock, according to Securities and Exchange Commission filings on Thursday. In a series of transactions disclosed over seven filings, Gangwal acquired 3.6m of the carrier’s common shares for roughly $29 apiece. In addition to Gangwal, Gary Kelly, the executive chairman of the board, also bought shares. The company appointed Gangwal to its board in July amid demands for sweeping leadership and strategy changes from activist investor Elliott Investment Management. The move was criticized by Elliott, which said last week that it remained determined to call a special shareholder meeting so investors can vote on its slate of new directors to overhaul Southwest’s board. “I believe changing the Board structure and top leadership beyond what has been already announced, would be counterproductive and not in the best interest of shareholders,” Gangwal said in a statement provided by Southwest on Wednesday. “With the opening of the Company’s trading window for insiders, I have made an investment in the Company’s stock.”<br/>
Transat A.T. Inc. is preparing to lay off up to 80 workers as the tour operator struggles to turn its finances around, according to a preliminary notice sent to the Quebec government. Over the course of the year, the company has felt the headwinds of stiff competition, engine recalls and the threat of a union strike, which together conspired to drain more money from the struggling outfit. Quebec labour rules require some companies to submit potential layoff figures for provincially regulated jobs, even if the cuts never come to pass. In a notice to the province’s employment department, Transat says the layoffs could be effective by Nov. 1, specifying in an email that they would not apply to pilots, flight attendants or other federally regulated roles. Transat spokesman Andrean Gagne says notification of the potential layoffs marks a “precautionary measure” in order to comply with provincial rules.<br/>
Five LATAM Airlines Group Boeing 777-300ERs will be coated with Lufthansa Technik’s Aeroshark drag-reducing film – the first carrier in the Americas and the third in the world to use this technology in order to save fuel and reduce emissions. The German company said on 3 October that it has been testing the film on one LATAM long-haul aircraft since December 2023. That test has shown an approximately 1% reduction in jet fuel consumption in daily operations, and based on those results, four more aircraft will receive the refit. “Our fleet modernisation strategy is a cornerstone of our commitment to sustainability and our vision of achieving net-zero [emissions] by 2050,” says Sebastian Acuto, director of fleet and projects for Santiago-based LATAM. “We remain focused on innovation and the adoption of cutting-edge technologies, ensuring our fleet evolves in line with our environmental goals.” LATAM CE Roberto Alvo has become one of Latin America’s strongest advocates and loudest voices for sustainability in aviation operations. Earlier this year, he told FlightGlobal that decarbonisation will be the biggest challenge for the industry in the first half of the 21st century.<br/>
Passengers were evacuated from a Ryanair flight at Brindisi in southern Italy shortly before takeoff on Thursday morning after fumes were seen outside of the plane. Italian media said 184 passengers had been on board the flight and that firefighters were called out to attend to the incident. "Flight FR8826 from Brindisi to Turin was delayed this morning after cabin crew observed fumes on the outside of the aircraft," Ryanair said in a statement. "Passengers were disembarked without incident and returned to the terminal by bus." Brindisi airport, in the southeastern region of Puglia, was closed for a time after the incident but operator Aeroporti di Puglia said it had reopened by late morning. Ryanair said it planned to use a spare aircraft to fly the passengers to Turin later on Thursday.<br/>
Welcome to the future, or at least, the future of travelling on Ryanair. The Irish low-cost airline has announced it is planning to phase out paper boarding tickets and will end the ability to check-in at the airport. CEO Michael O’Leary said the plans should come into effect next May. Passengers will need to check-in online or on the airline’s app. Currently those who don’t check-in online get hit with a €55 (NZ$97) charge at the airport, unless they are on a Flexi Plus ticket. “We want to get rid of airport checks in the same way we got rid of bag [desks],” O’Leary said in a press conference. “We are working towards from May 1 that everything will be done on the app, nothing will be done on paper any more.” Currently about 60% of passengers check-in on the app, and that is expected to rise to 80% by the end of the year. “The customers who want the piece of paper are the same demographic that when we first moved over to the internet they wouldn’t move over but were then the first ones to switch to the internet for cheaper airfares.”<br/>