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Alaska Air to buy Hawaiian Airlines for $1.9 billion
  + stars: | 2023-12-03 | by ( Eva Rothenberg | ) edition.cnn.com   time to read: +1 min
CNN —Alaska Air (ALK) on Sunday announced it will buy Hawaiian Airlines (HA) for $1.9 billion. “This is a fantastic deal that bring two airlines that have amazing loyalties in our regions together,” said Alaska Airlines CEO Ben Minicucci in a news conference, adding that the merger will give customers in both states expanded domestic and international choices. The deal, which is forecast to take nine to 18 months, will see both companies keep their brands, a unique decision that Minicucci and Hawaiian Airlines CEO and President Peter Ingram say was made out of respect for the nearly hundred-year legacy of both airlines and the communities they serve. “In Alaska Airlines, we are joining an airline that has long served Hawai‘i, and has a complementary network and a shared culture of service,” said Ingram. “With the additional scale and resources that this transaction with Alaska Airlines brings, we will be able to accelerate investments in our guest experience and technology, while maintaining the Hawaiian Airlines brand.”Minicucci, who will become the CEO of both airlines, heralded the move as pro-consumer will allow for more robust domestic competition with United, Delta, Southwest and American airlines, which currently own 80% of the market share.
Persons: , Ben Minicucci, Peter Ingram, Ingram, , Minicucci, Robin Hayes, JetBlue’s Organizations: CNN, Alaska, Sunday, Hawaiian Airlines, Alaska Airlines, United, JetBlue Airways, Justice Department, District of Columbia, Spirit Airlines Locations: , Delta, Southwest
Many people have learned through viral social media posts that Delta Air Lines and Frontier Airlines' aircraft trading cards. AdvertisementMany people are finding out about aircraft trading cards from viral social media posts, but some enthusiasts have collected them for years. Frontier has its own trading cards and wants you to "collect them all"Frontier's trading cards feature facts about animals and the aircraft they're depicted on. JetBlue confirmed to BI that they no longer offer trading cards today, but the airline released a set of 15 different aircraft cards in 2011. "Our pilots don't carry trading cards on hand," a United spokesperson told BI.
Persons: , Taylor Rains, they're Organizations: Delta Air Lines, Frontier Airlines, Delta, Business, Service, Boeing, Ebay, Frontier, Frontier Frontier, Frontier Airlines BI, JetBlue Airways, United Airlines, Spirit Airlines, American Airlines, Southwest Airlines, JetBlue, BI, United Locations: Virginia
The Chicken Tycoons vs. the Antitrust Hawks
  + stars: | 2023-11-29 | by ( H. Claire Brown | ) www.nytimes.com   time to read: +4 min
Khan came to prominence in 2017 after she published a Yale Law Review article called “Amazon’s Antitrust Paradox.” Her article pointed out that while Amazon’s business was extraordinarily customer-friendly, the company’s dominance enabled it to control increasingly large swaths of the ecosystem in which it operated. Shouldn’t the government be able to limit the impacts of Amazon’s market power on vendors and workers even if its consumers aren’t unhappy? Like the Justice Department, the Federal Trade Commission also has the power to police antitrust violations. Among these marquee names and splashy allegations, chicken companies stand out for the sheer volume and variety of antitrust lawsuits filed against them. Plaintiffs included pretty much everyone the poultry processors did business with — their customers, their farmers, their workers and their shareholders.
Persons: Wu, Khan, ” Wu, Biden, Simon, Simon & Schuster Organizations: Yale, Justice Department’s, Google, Justice Department, JetBlue, Spirit Airlines, Antitrust Division, Penguin Random, Simon &, Federal Trade Commission, Meta, Microsoft, Activision, Pilgrim’s Locations: Maine
Spirit Airlines is offering voluntary exit packages to salaried employees, the budget carrier's latest cost-cutting measure as it expects financial strains to continue next year. "Now, we're taking the next difficult step – enacting an Early Voluntary Out program for salaried Team Members," Christie wrote in the memo. The company had a similar plan during the height of Covid pandemic. "Based on the success of that plan, we're implementing a similar set of opportunities to help us right-size our organization for our current fleet and business constraints." The Wall Street Journal reported the Spirit Airlines buyouts earlier Wednesday
Persons: Ted Christie, Christie Organizations: Airlines, Airbus, Pratt, Whitney, CNBC, Denver, Team, JetBlue Airways, Justice Department, Street Journal, Spirit Airlines Locations: Boston
Airlines, hotels and cruise lines are touting massive sales right now. Not every offer is actually a good deal. The deals run the gamut. Delta Air Lines ’s Black Friday promotion offers up to $300 off flight and hotel bookings for trips to select destinations through the end of January 2024 for SkyMiles members. Spirit Airlines is advertising savings of 40% when people buy 12,000 or more points for its rewards program through Dec. 1.
Organizations: Delta Air Lines, Spirit Airlines
The Black Friday Travel Deals to Take and Ignore
  + stars: | 2023-11-24 | by ( Jacob Passy | ) www.wsj.com   time to read: 1 min
Airlines, hotels and cruise lines are touting massive sales right now. Not every offer is actually a good deal. The deals run the gamut. Delta Air Lines ’s Black Friday promotion offers up to $300 off flight and hotel bookings for trips to select destinations through the end of January 2024 for SkyMiles members. Spirit Airlines is advertising savings of 40% when people buy 12,000 or more points for its rewards program through Dec. 1.
Organizations: Delta Air Lines, Spirit Airlines
New York CNN —American Airlines’ flight attendants’ union wants permission from the government to go on strike in 30 days. The Association of Professional Flight Attendants, which represents more than 23,000 members at American has not overcome any of the many legal hurdles it needs to conquer before the union could strike. But even if the flight attendants win their request to have the clock start ticking towards a strike 30 days from now, a strike then is not likely. But it’s possible, and in the case of American Airlines, likely, that Congress would act to block a strike. Last month, flight attendants at Southwest Airlines won an immediate 20% raise, with retroactive pay.
Persons: , APFA, , Julie Hedrick, we’ve, Joe Biden, Biden, he’s, they’ve, AFPA Organizations: New, New York CNN — American Airlines, Airline, Railway Labor, Professional, Airlines, United Auto Workers, General Motors, Ford, American Airlines, Southwest, Southwest Airlines, Allied Pilots Association, Spirit Airlines, Northwest Airlines Locations: New York, Southwest, Delta, United
Officials with the Southwest Airlines Pilots Association say they too will ask for the right to strike if they don't have a contract deal with the airline in the next few days. “We definitely don't feel any equality here,” said Erik Harris, treasurer of the flight attendants' union. “How come the pilots have gotten their deal and we haven't?”Because of pattern bargaining, Southwest pilots are likely to wind up with raises like those approved for American Airlines pilots. The Southwest pilots' union has already tried and failed once this year to get permission to strike. On Thursday, several dozen American Airlines flight attendants picketed along a thoroughfare outside company headquarters in Texas, some carrying signs reading, “Ready to strike."
Persons: , , Erik Harris, Tom Nekouei, Harris Organizations: , Airlines, The, Professional, Southwest, Southwest Airlines Pilots Association, U.S, Spirit Airlines, National, Board, American Airlines, Boeing, , United Auto Workers, Hollywood, Teamsters, United Parcel Service Locations: Texas, Dallas, Fort Worth, Southwest, ” Dallas
Between 2018 and 2022, total revenue across major U.S. airlines from baggage fees increased from $4.9 billion to $6.8 billion, the senator said. Blumenthal also cited a report by a travel consultancy that found that eight leading U.S. airlines last year collected an estimated $4.2 billion in fees for seat selection. "U.S. airlines increasingly charge ancillary fees that obscure the actual cost of air travel," Blumenthal said in the letters. Airline CEOs in 2018 lobbied against bipartisan legislation to mandate "reasonable and proportional" baggage and change fees and convinced Congress to drop the plan. The U.S. Transportation Department last year proposed requiring airlines to disclose fees for baggage, ticket changes and family seating the first time an airfare is displayed.
Persons: Shelby Tauber, Richard Blumenthal, Blumenthal, David Shepardson, Will Dunham, Chris Reese Organizations: Dallas Love Field Airport, REUTERS, Rights, U.S, Senate, Democratic, Investigations, American Airlines, United Airlines, Delta Air Lines, Spirit Airlines, Frontier Airlines, Airlines for America, U.S . Transportation, Aviation, Thomson Locations: Dallas , Texas, U.S, Delta
A video of American Airlines mishandling a wheelchair has been generating outrage on TikTok. In the video, workers send a wheelchair speeding down a long ramp before it flips and crashes onto the tarmac. AdvertisementA video of American Airlines workers mishandling a wheelchair has been generating outrage on TikTok. And data shows baggage handlers actually damage or destroy mobility devices thousands of times a year. The airlines with the most incidents reported in 2022 were Spirit Airlines and JetBlue Airways, both with over 5% mishandled, followed by American Airlines, with more than 2% mishandled, according to the DOT's data.
Persons: , Dang Organizations: American Airlines, Department of Transportation, Service, American, Airlines, Business, Spirit Airlines, JetBlue Airways, Freedom Motors Locations: Miami
October Inflation Report Price Rises Expected to Cool
  + stars: | 2023-11-14 | by ( Jeanna Smialek | ) www.nytimes.com   time to read: +7 min
Airlines lower their fares when they are trying to get more people to book tickets as demand is slowing or they are facing stiffer competition. Early this month, the average price for a domestic flight around Thanksgiving was down about 9 percent from a year ago. But some airlines say demand is slowing outside of holiday and other peak travel periods. Image Thanksgiving this year is expected to set a record for air travel, with nearly 30 million passengers anticipated. If travel demand is dropping, in some ways that’s an even bigger win for people who are never going to give up on travel.”
Persons: Denise Diorio, “ I’ve, ’ ”, Diorio, Hopper, , Kyle Potter, Potter, Stefani Reynolds, John Grant, “ We’re, , ” Barry Biffle, Steve Hafner, that’s Organizations: Airlines, Airlines for America, Credit, The New York Times, U.S, JetBlue Airways, Spirit Airlines, Frontier Airlines, Miami, Analysts Locations: Tampa , Fla, Chicago, New York, Paris, Europe, Caribbean, Denver, Orlando, Fla, Los Angeles, East, Ukraine
A Frontier Airlines airplane taxis past a Spirit Airlines aircraft at Indianapolis International Airport in Indianapolis, Indiana. Southwest Airlines , for example, last month offered one-way fares of $29 for flights early in the morning or at night, just one example of airline discounting for off-peak periods. Airlines have scheduled a record 259.8 million seats for domestic flights in the fourth quarter, up nearly 8% from last year, on 1.86 million flights, up 6% from 2022, according to aviation-data firm Cirium. United Airlines said it expects to fly 5.9 million passengers from Nov. 17 to Nov. 29, up 13% from last year and 5% more than 2019. That means they could increase their inventory of cheaper basic economy fares during weaker demand periods, or raise fares when demand is high for premium seats.
Persons: Luke Sharrett, Ryan Green, Scott Keyes, airfare, Bob Jordan, Jordan, Barry Biffle, we're, Hopper, that's, Biffle, Henry Harteveldt Organizations: Frontier, Spirit Airlines, Indianapolis International Airport, Bloomberg, Getty, Texas — Airlines, Southwest Airlines, Skift Aviation, Airlines, JetBlue Airways, Budget, JetBlue, Frontier Airlines, . Frontier Airlines, CNBC, Delta Air Lines, United Airlines, American Airlines, Southwest, Atmosphere Research Locations: Indianapolis , Indiana, Texas, Miramar , Florida, Orlando, Vegas
[1/2] Airplane model is placed on displayed Spirit Airlines and jetBlue Airways logos in this illustration taken, June 21, 2022. JetBlue CEO Robin Hayes defended the deal being challenged by the U.S. Department of Justice in federal court in Boston, saying a merger was the only way to grow JetBlue into a long-term national challenger to the dominant airlines. "You'd never ever get to the size they are based on organic growth," he testified under questioning by JetBlue lawyer Ryan Shores. The Justice Department counters that passengers would suffer roughly $1 billion in net harm annually if JetBlue absorbs Spirit, causing fares to rise. The trial is a rarity for the Justice Department, which historically has approved airline mergers without trials conditioned on asset divestitures.
Persons: Dado Ruvic, Robin Hayes, Hayes, You'd, Ryan Shores, Edward Duffy, JetBlue, District William Young, Nate Raymond, Alexia Garamfalvi Organizations: Airlines, jetBlue Airways, REUTERS, Rights BOSTON, JetBlue Airways, Spirit Airlines, U.S, JetBlue, U.S . Department of Justice, The Justice Department, Democratic, District of Columbia, United Airlines, American Airlines, Delta Air Lines, Southwest Airlines, Department, District, Justice Department, Thomson Locations: Boston, New York City, Newark , New Jersey, Fort Lauderdale . U.S
BOSTON, Nov 1 (Reuters) - The CEO of Spirit Airlines on Wednesday defended in court the planned $3.8 billion acquisition of his company by JetBlue Airways as a means to create a viable competitor to the four larger airlines that dominate the U.S. skies. Ted Christie, Spirit's chief executive officer, during the second day of trial in the U.S. Department of Justice's lawsuit challenging the merger testified that his ultra-low-cost airline remained "relatively insignificant" despite years of growth. He said Spirit, which has not turned a profit in three years, had just around 3% of the market and was facing "more effective" competition from those larger airlines - United Airlines, American Airlines, Delta Air Lines and Southwest Airlines - in the aftermath of the COVID-19 pandemic. Christie testified that throughout the negotiations for the deal in 2022, Spirit had been concerned how regulators would view a merger with JetBlue, as the Justice Department had already sued JetBlue to challenge a planned Northeast partnership with American Airlines. Reporting by Nate Raymond in Boston, Editing by Alexia Garamfalvi and Nick ZieminskiOur Standards: The Thomson Reuters Trust Principles.
Persons: Ted Christie, Christie, Spirit, Jay Cohen, William Young, Nate Raymond, Alexia Garamfalvi, Nick Zieminski Organizations: BOSTON, Spirit Airlines, JetBlue Airways, U.S . Department of, Spirit, United Airlines, American Airlines, Delta Air Lines, Southwest Airlines, JetBlue, Frontier Group Holdings, U.S, Justice Department, Democratic, District of Columbia, Thomson Locations: U.S, Boston, New York City, Newark, Fort Lauderdale
The Biden administration’s fight against consolidation in the airline industry will be tested Tuesday with lawyers for JetBlue Airways and the Justice Department squaring off in court. The administration is suing to block JetBlue’s proposed $3.8 billion acquisition of Spirit Airlines. The Justice Department is fresh off victory in a previous lawsuit that killed a partnership between JetBlue and American Airlines. If it swallows Spirit, JetBlue will leapfrog Alaska Airlines but still control less than 10% of the U.S. air-travel market. The Justice Department argues, however, that Spirit is the disruptive force that needs to be protected.
Persons: Biden, Obama Organizations: JetBlue Airways, Department, Spirit Airlines, JetBlue, Justice Department, American Airlines, U.S, Alaska Airlines, New, Big, Spirit, The, US Airways, JetBlue Airways Corp Locations: Boston, U.S, United, Delta, New York, Miramar , Florida, New York City, Fort Lauderdale , Florida, Continental
JetBlue Airways stock tumbled to a nearly 12-year low Tuesday as the company forecast a loss for the fourth quarter and heads to court to defend its acquisition of budget carrier Spirit Airlines , a purchase it argues is crucial to its future. Shares fell more than 18% in early trading Tuesday to $3.42 apiece before recovering some of those losses. Spirit shares fell more than 17% at their lowest point to a three-year low. JetBlue plans to remove seats from Spirit's bright-yellow planes and outfit them with seatback screens to match JetBlue's interiors. Spirit's business model is based on packed planes, no-frills fares and fees for everything from seat assignments to carry-on luggage, while JetBlue has more amenities and fewer seats on board.
Organizations: JetBlue Airways, Spirit Airlines, U.S . Department of Justice, Frontier Airlines, U.S, JetBlue, Southwest, Justice Department Locations: Delta, United, U.S
Pinterest — Shares of the image-sharing social media platform soared 19% Tuesday, a day after the firm's third-quarter earnings report beat expectations for earnings and revenue. Pinterest also eased concerns over potential ad revenue loss due to the Israel-Hamas war, saying some of the advertisers that had initially paused spending have already returned. Caterpillar said in its earnings presentation that revenue in the fourth quarter would be just "slightly" above the same quarter a year prior. JetBlue lost 39 cents per share, excluding items, on $2.35 billion of revenue, while analysts polled by LSEG expected a loss of 25 cents per share on $2.38 billion of revenue. This was higher than the $1.58 in earnings per share on $1.48 billion in revenue that analysts had forecast, according to FactSet.
Persons: Pinterest, Busch, Jet Blue, LSEG, Wolfspeed, Chegg, Morgan Stanley, Baird, SoFi, Roku, MoffettNathanson, — CNBC's Pia Singh, Yun Li, Hakyung Kim, Lisa Kailai Han, Brian Evans, Jesse Pound Organizations: Anheuser, Busch, LSEG, Revenue, Caterpillar, JetBlue —, Jet, JetBlue, Spirit Airlines, Arista Networks, Arista, VF Corp, Vans, U.S, BP, ON, Asbury Automotive, JPMorgan Locations: Israel, LSEG, U.S
[1/2] Airplane model is placed on displayed Spirit Airlines and jetBlue Airways logos in this illustration taken, June 21, 2022. REUTERS/Dado Ruvic/Illustrations/File Photo Acquire Licensing RightsBOSTON, Oct 31 (Reuters) - The U.S. Department of Justice heads to trial on Tuesday to urge a federal judge to block JetBlue Airways' (JBLU.O) planned $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines. The trial will take place without a jury over about three weeks before U.S. District Judge William Young. A merger between JetBlue and Spirit, the sixth and seventh largest U.S. carriers, respectively, would mark the first major U.S. airline combination since Alaska Airlines bought Virgin America in 2016. The Justice Department alleges the merger would eliminate the pressure larger airlines, including JetBlue, face to lower their fares in response to competition from Spirit and cost consumers over $2 billion in higher fares annually.
Persons: Dado Ruvic, Joe Biden's, William Young, Young, Biden, Leo Sorokin, Nate Raymond, Alexia Garamfalvi, Nick Zieminski Organizations: Airlines, jetBlue Airways, REUTERS, Rights, U.S . Department of Justice, JetBlue Airways, Spirit Airlines, U.S, JetBlue, Spirit, Alaska Airlines, Virgin America, United Airlines, American Airlines, Delta Air Lines, Justice Department, Department, Democratic, District of Columbia, The, Big, American, Thomson Locations: Boston, U.S, New York City, Newark, Fort Lauderdale
"With these recent developments, however, we will also be suspending all new-hire training efforts starting in November, until further notice." The carrier said it expects 13 grounded planes in January, rising to 41 in December of next year. The airline had a fleet of 202 Airbus planes as of Sept. 30, according to a filing. The budget airline Spirit on Thursday posted a net loss of $157.6 million, which was more than four times its loss a year ago. "And, unfortunately, we have not seen the anticipated return to a normal demand and pricing environment for the peak holiday periods."
Persons: Greg Christopher, Christopher, RTX, Ted Christie Organizations: Airbus, CNBC, Pratt, Whitney Locations: Miramar , Florida
Southwest slows 2024 growth as demand moderates
  + stars: | 2023-10-26 | by ( Leslie Josephs | ) www.cnbc.com   time to read: +3 min
Southwest Airlines said Thursday it plans to slow its capacity growth next year, citing moderating travel demand as booking patterns shift back to pre-pandemic norms. Southwest will expand its flying between 10% and 12% in the first quarter of 2024 from a year earlier, down from a previous forecast of as much as 16% growth, Southwest said in an earnings release. Adjusting for the impact of labor contract adjustments and other one-time items, the company earned 38 cents per share. The company forecast negative margins in the last three months of the year, citing weaker demand even for year-end holidays. Southwest and Spirit shares were each down more than 4% in premarket trading, while Frontier was off 1%.
Persons: Bob Jordan, Ted Christie Organizations: Southwest Airlines, Airlines, Southwest, Spirit Airlines, JetBlue Airways, Department, Frontier Airlines, Frontier Locations: LSEG
The Nasdaq Composite fell around 1% on Thursday, after dropping the day before. Alphabet was the culprit Wednesday: It got slammed after its own earnings, which helped drag the tech-heavy Nasdaq into a correction. The S&P 500 and Dow industrials fell alongside the Nasdaq. Treasury yields wavered. The yield on the benchmark 10-year note oscillated between gains and losses after nearing Monday’s 5% level earlier in the session.
Persons: Sam Bankman, Dow industrials, Dow Organizations: Nasdaq, Facebook, Treasury, United Parcel Service, Spirit Airlines, Comcast
Stock Market News Today: Dow, Nasdaq Drop; Amazon Earnings in Focus
  + stars: | 2023-10-26 | by ( ) www.wsj.com   time to read: +1 min
The Nasdaq Composite closed down 1.8% on Thursday, after dropping the day before. Alphabet was the culprit Wednesday: It got slammed after its own earnings, which helped drag the tech-heavy Nasdaq into a correction. The 10-year yield dipped. The yield on the benchmark 10-year note settled at 4.843%, pulling back after nearing Monday’s 5% level earlier in the session. Coming up:Intel and Ford Motor are also on the earnings docket for after markets close.
Persons: Sam Bankman, Dow industrials Organizations: Nasdaq, Facebook, United Parcel Service, Spirit Airlines, Comcast, Intel, Ford
Spirit Airlines canceled 185 flights on Friday and Saturday. AdvertisementAdvertisementIf you're flying on a budget this month, prepare for delays: Spirit Airlines canceled almost 200 flights on Friday and Saturday. AdvertisementAdvertisementA spokesperson for Spirit Airlines did not elaborate on the reason for the inspections when asked by Insider. This is not the first time in recent months Spirit Airlines customers have seen major disruptions. The current delays are unrelated to this summer's engine issues, a spokesperson for Spirit Airlines told Insider.
Persons: Organizations: Spirit Airlines, Service, Federal Aviation Administration, CNN, CNBC
CNN —Spirit Airlines says its flight schedule could be impacted for days as it scrambles to perform “a necessary inspection of a small section of 25 of our aircraft.”As of 2:45 p.m. EDT, the ultra-low-cost carrier has canceled 98 flights, or 11% of its schedule for Friday, according to flight tracking site FlightAware. The site also showed that Spirit has canceled another 81 flights, or 9% of its schedule, on Saturday. “While this action is being taken out of an abundance of caution, the impact to our network is expected to last several days as we complete the inspections and work to return to normal operations,” Spirit said in a statement. “We apologize for the inconvenience and are working to take care of affected guests.”Spirit has not specified the type of inspections that needs to take place, though FlightAware data shows almost all the cancellations involve Spirit’s Airbus A319 aircraft. Flights departing from airports such as Atlantic City, Hartsfield-Jackson, Nashville, Boston Logan, Baltimore/Washington, Dallas-Fort Worth, Houston Bush, Las Vegas, Los Angeles, Memphis, Orlando, Chicago O’Hare, Southwest Florida, and Tampa have been impacted.
Persons: scrambles, , Houston Bush Organizations: CNN — Spirit Airlines, , Airbus, Atlantic City, Jackson, Federal Aviation Administration, CNN Locations: Atlantic, Hartsfield, Nashville, Boston Logan, Baltimore, Washington, Dallas, Fort Worth, Houston, Las Vegas , Los Angeles, Memphis, Orlando, Chicago O’Hare, Southwest Florida, Tampa
Spirit Airlines canceled about 100 flights on Friday after pulling some planes out of service for inspections, and the airline expects the disruptions to last several days. “We’ve cancelled a portion of our scheduled flights to perform a necessary inspection of a small section of 25 of our aircraft,” Spirit said in a statement. About half of the Spirit cancellations were at Florida’s Orlando International Airport, where Spirit is the second-largest carrier. Spirit, which is based in Miramar, Florida, has canceled more than 3,600 flights this year, or 1.5% of its schedule. That is lower than the 2% cancellation rate at Frontier Airlines, a similar budget carrier, and rates for JetBlue Airways and United Airlines.
Persons: “ We’ve Organizations: Spirit Airlines, Federal Aviation Administration, , FAA, European, Airbus, Florida’s Orlando International Airport, Frontier Airlines, JetBlue Airways, United Airlines Locations: U.S, Miramar , Florida
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