Elliott Investment Management and Southwest Airlines have been discussing a settlement that would give the activist investor significant representation on the airline’s board, according to people familiar with the matter. The settlement talks are predicated on a deal that would give Elliott less than full board control, said the people, who asked not to be named because the negotiations are confidential. Southwest’s board will drop to 12 members after Chairman Gary Kelly steps down next year, meaning Elliott would likely end up wither fewer than six selections. The talks are in early stages, and it’s possible that no deal could be reached, some sources said. Bloomberg News was first to report on the preliminary settlement discussions. On Monday, Elliott called for a special meeting at the airline, months after the activist revealed it had built an 11% stake at the company. Elliott has said it’s looking to oust CEO Bob Jordan and overhaul the airline’s strategic planning. Southwest has stuck by Jordan, who joined the Dallas-based carrier almost four decades ago and is now tasked with major changes to the airline’s business model to help drum up revenue and better compete with rivals. Over the summer, Southwest said it plans to ditch its open-seating model and offer extra legroom seats. Jordan said consumer tastes have changed in recent years, setting the stage for the airline’s biggest shift to its business model in 50 years. At an investor event last month, Southwest laid out a three-year plan that Jordan claimed would add $4b to earnings before interest and taxes in 2027.The airline also said it authorized a $2.5b buyback and would slash its Atlanta flights to increase profits. <br/>
unaligned
Spirit Airlines on Friday said it reached an agreement with its credit card processor to again extended a debt refinancing timeline to December, hours before it was set to hit its deadline. Spirit said in a filing late Friday that earlier this week it drew down the entirety of its $300m revolving credit facility and expects to end the year with just over $1b in liquidity. “As previously disclosed, the Company remains in active and constructive discussions with holders of its senior secured notes due 2025 and convertible senior notes due 2026 with respect to their respective maturities,” Spirit said in a filing late Friday. The deadline was previously set in September and had been extended until Oct. 21 before the Friday change. The airline’s stock closed at a new low Friday, down roughly 3%, at less than $1.50 per share. The Miramar, Florida-based airline has furloughed workers, slashed its schedule and deferred aircraft deliveries to save cash over the past year. Many of its planes have been grounded because of a Pratt & Whitney engine recall. It has also reported weaker-than-expected bookings and its planned acquisition by JetBlue Airways was scuttled after getting blocked by a federal judge on antitrust grounds. Its shares have tumbled more than 90% so far this year and nearly 40% so far in October alone.<br/>
Icelandair has sealed codeshare agreements with Arctic-region carriers intended to support greater connectivity between Europe and North America. The codeshare agreements – with Faroe Islands carrier Atlantic Airways and Air Greenland – will be fully implemented in the first quarter for the former, and mid-2025 for the latter. Icelandair says it signed the pacts in Reykjavik, at the Arctic Circle Assembly, the gathering of a large international non-profit dialogue and co-operation platform for participants with diverse Arctic interests. The carrier says the tie-up will provide “great connections” between Greenland and the Faroe Islands, as well as North America and Europe. “We are all island nations that rely on efficient air transport to connect with the world and for the prosperity of our countries,” says Icelandair chief Bogi Nils Bogason. “By joining forces and formalising our partnerships, we will further strengthen air connectivity in the West-Nordic region and in the Arctic.” Air Greenland chief Jacob Nitter Sorensen says the collaboration will create “seamless travel opportunities” and “connect the North like never before”, while Atlantic Airways chief Johanna a Bergi adds that the agreement is “vital both commercially and for our countries”. Icelandair’s Arctic agreement follows another codeshare pact, with Star Alliance carrier TAP Air Portugal, unveiled a few days ago and which follows the Icelandic carrier’s opening of services to Lisbon.<br/>
Long-haul low-cost carrier Norse Atlantic Airways is opening a transatlantic service between Rome Fiumicino and Los Angeles next year. It also intends to restore a connection to Los Angeles from Oslo. The Scandinavian airline states that it will commence a thrice-weekly operation from 22 May. Norse Atlantic, which uses a fleet of Boeing 787s, says it is “responding to increasing demand”. The Oslo-Los Angeles route will be reinstated for summer 2025, the third consecutive summer season for the link. Norse will also fly this sector three times per week, beginning on 23 May and running to 26 September.<br/>
Sierra Leone’s transport ministry has unveiled a new carrier for the West African state, which is set to commence services to various cities – including London – before the end of this year. All carriers overseen by the Sierra Leone civil aviation regulator are blacklisted by the European Commission, preventing them from serving European destinations. But Air Sierra Leone will operate under a UK air operator’s certificate, according to transport minister Fanday Turay, while it seeks a local authorisation. “Air Sierra Leone will operate as a private entity rather than a national carrier,” says Turay. The airline aims to launch its first services, a thrice-weekly rotation from Freetown to London Gatwick, on 2 December. Its initial fleet will comprise a 189-seat Boeing 737 Max 8, with which it will serve Gatwick, plus a 149-seat 737-400 and a 50-seat Embraer ERJ-145. “Through our support, [the carrier] is poised to enhance Sierra Leone’s global connectivity, stimulate economic development, and foster a sense of national pride as we embark on a new era in our aviation sector,” says Turay.<br/>
Bahrain's national carrier Gulf Air plans to increase the direct flights frequency to Singapore from its hub in capital Manama - from the present three-flights-a-week to a daily schedule. By month-end, Gulf Air will begin flying non-stop to the vibrant Asian hub on a Boeing 787-9 Dreamliner. By month-end, the airline's operations on the sector will surge from the present three-flights-a-week to a daily schedule, thus offering passengers greater convenience and flexibility, said a statement from Gulf Air. The expanded schedule comes as part of Gulf Air's broader strategy to strengthen its global network, focusing on key destinations in Asia and the Middle East. Since its inception in 2021, the Singapore route has been a cornerstone of Gulf Air's network, reflecting the city-state's status as a leading global hub for commerce and tourism. The move is expected to cater to the growing demand for travel between the two countries, bolstering connectivity for both business and leisure travellers, said the statement. The introduction of daily flights will further elevate this destination and cater to the needs of a wider range of travellers, it added.<br/>
The Cambodian private sector is optimistic about Cambodia Angkor Air’s plans to expand direct flights between major cities in China and key destinations in Cambodia, saying they expect it to bring positive benefits to Cambodia in tourism, trade and Chinese investment growth. Zhan David, CEO of Cambodia Angkor Air, met with Minister of Tourism Huot Hak on Wednesday (Oct 16) at the Ministry of Tourism. During the meeting, he announced that in 2025, the airline plans to increase and add direct flights between cities in China and Cambodia. The airline also plans to increase domestic flights, in order to contribute to the recovery of Cambodia's tourism sector by providing easier travel options for international tourists, particularly Chinese visitors to Cambodia. During the meeting, David also promised to continue promoting Cambodia’s tourism potential to the Chinese population and mentioned plans to organise business forums with Chinese investors to attract more investment to Cambodia. According to tourism ministry data, from January to July 2024, Cambodia received a total of 3,742,230 international tourists, an increase of 23.2% compared to the same period in 2023. Among them, 538,834 tourists were from China, an rise of 47.7% compared to the same period in the previous year.<br/>