Spirit Airlines has received about $150m in compensation from engine maker Pratt & Whitney for its grounded Airbus jets, and the carrier expects further payments as its geared turbofan (GTF) engine removals will continue through “at least” 2026. Miramar, Florida-based Spirit says it is “currently discussing arrangements with [P&W] for any of its aircraft that remain unavailable for operational service” beyond the end of 2024. “We expect to continue to receive compensation from [P&W] for the loss of utilisation of the GTF engines,” it says. Details of Spirit’s compensation agreement with P&W affiliate International Aero Engines, which provided Spirit a monthly credit from October 2023 through 31 December, were disclosed in a recent 10K filing with the US Securities and Exchange Commission. The amount is based on the number of days Spirit’s Airbus A320neo-family jets have been out of service for engine inspections and repairs, and falls on the low end of the $150-$200m compensation package Spirit said it expected to receive from P&W in March 2024. Hundreds of A320neo, A321neo and A220 jets – as well as Embraer E190-E2-family aircraft – have been grounded on a rolling basis since P&W disclosed in July 2023 that a potential defect in the powdered metal used to manufacture some engine parts would require a widespread recall. <br/>
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WestJet is updating its carry-on baggage size limits starting this spring to align with international standards used by other North American airlines. The Calgary-based airline announced on Monday that beginning May 6, 2025, the new carry-on bag limit will be 22” x 14” x 9” (including wheels and handles). This replaces the current 21” x 15” x 9” limit, which was unique to WestJet. “We expect this change will help streamline check-in and boarding times by eliminating the inconsistency between WestJet and several other carriers,” said Colleen Tynan, WestJet’s vice-president of experience management, in a statement. “Introducing a new standard size ensures more bags fit on more flights, so we expect this to have a big impact on the overall experience on board.” The change also applies to Sunwing flights and WestJet partner Delta Air Lines. New baggage sizing devices will be available at airports by March 13, and both the old and new sizes will be accepted until the official transition on May 6.<br/>
Budget carrier Norwegian has agreed to buy 10 Boeing 737-800 aircraft that are currently part of its leased fleet, the airline said on Monday. The transaction is expected to close during the first quarter and will initially be funded through the company's cash reserves, though the airline is looking at securing long-term financing after completion, Norwegian's statement said. "This move is expected to deliver both short and long-term cost savings, as well as provide additional flexibility for future fleet planning," said CE Geir Karlsen. Norwegian declined to disclose the price or seller, nor would it confirm whether the deal had been made with one or several leasing companies. The airline said it expects to book a non-recurring gain of about 570m Norwegian crowns ($50.7m) as a result of the deal. "This gain reflects the pricing the company has been able to achieve for the aircraft and the corresponding reduction of existing lease liabilities," Norwegian said. The deal is also expected to yield recurring cost savings of about 200m crowns a year, net of financing costs, it added.<br/>
Middle Eastern carrier Emirates is broadening its Asian network with three new routes including the Chinese city of Shenzhen. The carrier has disclosed that it also plans to operate to Da Nang in Vietnam and the Cambodian city of Siem Reap, connecting via Bangkok. It will start flying to Shenzhen from 1 July with a daily service using 332-seat Boeing 777-300ERs configured in four classes. Emirates says the link will provide a fourth gateway into the Chinese mainland, after Beijing, Shanghai and Guangzhou. “Our expansion into Shenzhen opens new doors for business and economic exchange between this technological powerhouse and global markets,” says deputy president Adnan Kazim. The airline is introducing a four-times weekly flight to Da Nang from 2 June and three weekly flights to Siem Reap from the following day. Da Nang and Siem Reap will be served via Bangkok as an onward connection with two-class 777-300ERs, fitted with 421 seats. Emirates already flies to Hanoi and Ho Chi Minh City in Vietnam, and the Cambodian capital Phnom Penh.<br/>
Israel's El Al Airlines has agreed to pay a bigger share of its security costs from this year, it said on Monday, under a new deal with the government that local media estimate will cost the airline around $10m a year. Under the agreement, which still needs final approval, the state will pay 95% of the Israeli flag carrier's security expenses this year and 94% in 2026, tapering to 92.5% from 2029, El Al said. The government paid 97.5% of the airline's security-related expenses last year, having taken on more and more of the cost since 2010, when it paid 60%. A spokesperson declined to say how much the increase in its payments would cost the airline. El Al, regarded as having among the most stringent security in the industry, is due to report annual earnings next week. Over the first nine months of 2024 El Al's profit soared 439% to $415m as the war with Palestinian militant group Hamas and incoming missile attacks from Lebanon's Hezbollah and Yemen's Houthis prompted most foreign carriers to halt flights, which are only now being reinstated following ceasefire agreements. El Al said it was also in advanced negotiations with the government regarding a reduction in the company's obligations. While it declined to elaborate, El Al has long lobbied the state for permission to resume dividend payments and taking on more of its own security costs could open the way towards concessions on the payout. The government imposed a number of restrictions on El Al in 2021 - a year after it changed ownership - when it received a $210m bailout package after being forced to halt most flights during the Covid pandemic.<br/>