Tag: Spirit (Page 2 of 3)

Alaska’s RavnAir Files for Bankruptcy as U.S. Treasury Mulls Grants

April 7, 2020 / WIL BALDWIN

WASHINGTON, April 6 (Reuters) – RavnAir Group, the largest regional carrier in Alaska, filed for bankruptcy Sunday and grounded all of its 72 planes as it waits on a decision from U.S. Treasury for government assistance.

The Trump administration is weighing applications from numerous airlines as it considers how to disburse $25 billion in passenger airline grants, $4 billion for cargo carriers and $3 billion for airport contractors. Congress approved the bailout funds to help air carriers cover payroll costs.

RavnAir, which filed for Chapter 11 bankruptcy protection in Delaware, said Sunday it was suspending all operations and laying off all employees.

“We took these actions to ensure our airline has a future, and to give us time to ‘hit pause'” while it seeks Treasury grants and “other sources of financial assistance that will allow us to weather the coronavirus pandemic and emerge successfully once it has passed.”

In a letter posted Sunday, RavnAir Chief Executive Dave Pflieger said the airline was working to “resume the vital air service you depend on to get home to your families, to your businesses, to medical appointments, and to other duties that are essential to our communities and the state of Alaska.”

Delta Air Lines Inc, American Airlines Group Inc , Spirit Airlines Inc, Southwest Airlines Co , United Airlines Holdings Inc and JetBlue Airways Corp are among the airlines that confirmed they filed before a Friday deadline set by Treasury to get speedy consideration.

On Sunday, top Democrats including House Speaker Nancy Pelosi and Senator Charles Schumer urged Treasury Secretary Steven Mnuchin to move quickly and not impose unreasonable conditions on the grants. Airline unions and many Democrats object to Treasury demanding significant equity or warrants as a condition to the grants.

(Reporting by David Shepardson; Editing by Lisa Shumaker)

Airbus Posts Strong January Orders, Delivers 31 Jets

February 6, 2020 / WIL BALDWIN

PARIS (Reuters) – Airbus <EADSY> posted its biggest January order haul in at least 15 years on Thursday as it booked a major leasing order that has been in the pipeline for several months, and carried out 31 aircraft deliveries.

The European planemaker said it had taken orders for 296 aircraft in January, including the recently finalised order for 102 planes from Air Lease Corp <AL> as well as 100 jets from U.S. low-cost carrier Spirit Airlines <SAVE>. After cancellations, it started the year with 274 net orders.

Cancellations included 20 single-aisle jets from Colombia’s Avianca, balanced by 20 orders for broadly similar aircraft from leasing company BOC Aviation in what some industry sources have described as a swap to ease their financing. Neither firm was available for comment.

Lufthansa <LHA.DE> canceled two A350 wide-body jets.

Rival Boeing, whose sales and deliveries have been affected by the grounding of its 737 MAX, has yet to post January data.

Airbus said on Thursday its deliveries from an overseas assembly plant in China had been halted amid the coronavirus outbreak. Airbus has joined other local companies in extending a routine shutdown planned for Chinese New Year, due to the impact of the health scare on its supply chains and logistics.

Airbus is expected to give targets next week and barring a worsening of the coronavirus crisis could shoot for record deliveries of at least 900 jets in 2020 as Boeing remains on a backfoot due to the MAX grounding, industry analysts say.

(Reporting by Tim Hepher; Editing by Alexandra Hudson)

FILE PHOTO: Logo of Airbus is pictured at the aircraft builder’s headquarters of Airbus in Colomiers near Toulouse

Spirit Airlines Finalizes Order for 100 Airbus A320neo Family Aircraft

January 6, 2020 / WIL BALDWIN

U.S.-based Spirit Airlines has finalised a purchase agreement with Airbus for 100 A320neo Family aircraft. In October, the two parties had signed and announced a memorandum of understanding (MoU) for the purchase of up to 100 of the aircraft – a mix of A319neo, A320neo, and A321neo – to meet the airline’s future fleet requirements.

Spirit is based in South Florida and is the fastest-growing airline in the United States, with flights throughout the U.S., Latin America and the Caribbean. The airline will announce an engine selection at a later date.

Featuring the widest single-aisle cabin in the sky, the best-selling A320neo Family, comprising the A319neo, A320neo, and A321neo, will deliver a fuel-burn reduction of approximately 20% as well as 50% less noise compared to previous-generation aircraft, thanks to incorporating the very latest technologies including new-generation engines and Sharklets.

Firm orders worldwide for the A320neo Family now have surpassed 7,300 from more than 110 global customers.

Explosion at Kansas Aircraft Plant Injures 15 People

December 28, 2019 / WIL BALDWIN

(Reuters) – At least 15 people were injured on Friday after a liquid nitrogen line exploded at a Textron Aviation plant near Wichita, Kansas, potentially setting back the launch of a new aircraft under development, county and company officials said.

Emergency medical services took 11 people to the hospital, one of them suffering potentially serious injuries, Dr. John Gallagher, director of Sedgwick County EMS, told a news conference.

Company officials said two of victims went to the hospital in private cars and two were treated at the scene.

Injuries were limited because only a skeleton crew was on duty during the holidays, said Deputy Chief Daniel Wegner of the Sedgwick County Fire Department.

The explosion in a 3-inch liquid nitrogen gas line also damaged a storage tank, causing nitrogen gas to vent out of the building, Wegner said.

News video from the scene showed what appeared to be a steam cloud billowing out of the damaged building. The gas was not harmful, Wegner said.

A second valve also ruptured, said Kate Flavin, a spokeswoman for Sedgwick County, and emergency crews vented nitrogen gas from the affected tanks before doing another search of the plant.

No others were found injured and control of the facility was returned to Textron shortly after noon, but emergency crews remained on standby at the scene, she said.

Damage was contained to Plant 3, a site for composite manufacturing and experimental aircraft fabrication including that of the SkyCourier, said Stephanie Harder, a spokeswoman for Textron.

The SkyCourier, a utility turboprop under development, is due to enter service in 2020, Textron has previously said. Harder said it was too early to determine what damage the prototype aircraft under production may have suffered.

Textron Aviation, a unit of Textron Inc (TXT), makes Beechcraft and Cessna aircraft.

The Wichita-area economy has long been supported by aircraft manufacturing. Boeing Co (BA) announced in January it would suspend production of its 737 Max jetliner, which has been grounded worldwide after two fatal crashes. That move affected workers at Spirit AeroSystems in Wichita, Boeing’s top supplier, which produces the jet’s fuselages.

Reporting by Daniel Trotta, Additional reporting by Rich McKay; Editing by Daniel Wallis, Bill Tarrant and Richard Chang

Spirit Airlines to Buy 100 Airbus A320neo Family Aircraft

December 23, 2019 / WIL BALDWIN

A logo of low cost carrier Spirit Airlines is pictured on an Airbus plane in Colomiers near Toulouse

(Reuters) – U.S. budget carrier Spirit Airlines Inc <SAVE> said on Monday it will buy 100 Airbus <EADSY> A320neo-family jets to be delivered through 2027, with options to purchase up to 50 additional aircraft.

The deal includes a mix of Airbus A319, A320, and A321 models, the company said.

The purchase agreement finalizes an October provisional deal for the aircraft, when Spirit picked European planes despite Washington imposing tariffs on them.

Depending on the number of each variant of the A320 single-aisle family chosen, the deal could be worth $11 billion to $12 billion at the most recent 2018 Airbus list prices, but industry sources say such deals typically involve discounts of at least 50%.

Washington has imposed 10% tariffs on some of the planes Airbus offers to U.S. carriers, as part of a long-running transatlantic trade dispute over aircraft subsidies.

Spirit currently operates an all-Airbus fleet of 140 jets.

Aircraft are typically ordered several years in advance, meaning any planes ordered now would only be covered by tariffs in the event of an extended transatlantic tariff war. Airbus jets assembled at a plant in Alabama are not currently included.

(Reporting by Rachit Vats in Bengaluru and Allison Lampert in Montreal; Editing by Shounak Dasgupta and Lisa Shumaker)

Spirit Airlines Signs MoU for up to 100 A320neo Family Aircraft

October 25, 2019 / WIL BALDWIN

Airbus and Spirit Airlines have agreed to a Memorandum of Understanding for the U.S.-based airline to acquire up to 100 A320neo Family aircraft. Spirit announced its intention to place firm orders for a mix of A319neo, A320neo, and A321neo to meet its future fleet requirements.

“This new order represents another milestone for Spirit,” said Spirit Airlines’ President and CEO Ted Christie. “The additional aircraft will be used to support Spirit’s growth as we add new destinations and expand our network across the U.S., Latin America, and the Caribbean. We look forward to working with our valued partners at Airbus to finalise our agreement.”

“The Airbus A320 Family has been a strong platform for the remarkable success of Spirit over the past several years,” said Airbus Chief Commercial Officer Christian Scherer. “The ongoing, enthusiastic spirit the airline demonstrates in our A320neo Family is most rewarding, and we look forward to playing a part in the Spirit team’s continued growth for many, many years to come.”

Spirit is a fast growing ultra-low-cost carrier in the Americas, based in South Florida.

Featuring the widest single-aisle cabin in the sky, the best-selling A320neo Family, comprising the A319neo, A320neo, and A321neo, deliver at least 20% reduced fuel burn as well as 50% less noise compared to previous-generation aircraft, thanks to incorporating the very latest technologies including new-generation engines and Sharklets. At the end of September 2019, the A320neo Family had received more than 6,650 firm orders from nearly 110 customers worldwide.

Spirit Airlines Must Face ‘Gotcha’ Carry-on Bag Fee Lawsuit

September 12, 2019 / WIL BALDWIN

NEW YORK (Reuters) – A federal appeals court revived a lawsuit by Spirit Airlines passengers who said the low-cost carrier blindsided them by imposing unexpected carry-on bag fees on tickets bought through Cheapoair, Expedia, Priceline and Travelocity.

The 2nd U.S. Circuit Court of Appeals in Manhattan said 22 passengers could sue for breach of contract because there was no evidence that Spirit promptly notified them about the fees, and there were “ambiguities” in the prices they would pay.

Spirit and its lawyers did not immediately respond to requests for comment.

Compared with many carriers, Spirit relies more on ancillary fees to offset the financial drag from lower base fares.

The plaintiffs accused the Miramar, Florida-based carrier of knowing that its online travel agents hid the “gotcha” bag fees they would have to pay at the airport.

They said these fees often exceeded the cost of their tickets, and totaled millions of dollars a year.

Spirit countered that federal law precluded the lawsuit, and that its “contract of carriage” specifically provided that a passenger could take one carry-on bag into the cabin, for a fee.

The appeals court returned the case to U.S. District Judge William Kuntz in Brooklyn, who had dismissed it last November.

“This is a great victory for air travelers nationwide,” the plaintiffs’ lawyer John Hermina said in an interview. He said his clients will pursue their case in the district court.

On Tuesday, Spirit advertised carry-on bag fees for an Oct. 1 flight to Fort Lauderdale, Florida, from New York’s LaGuardia Airport ranging from $28, if booked on its website, to $65, if paid at the gate. Base fares ranged from $26 to $121.99.

The case is Cox et al v Spirit Airlines Inc, 2nd U.S. Circuit Court of Appeals, No. 18-3484.

(Reporting by Jonathan Stempel in New York; Editing by Richard Chang)

Spirit Airlines to Take $25 Million Hit from Hurricane Dorian

September 7, 2019 / WIL BALDWIN

FILE PHOTO: A logo of low cost carrier Spirit Airlines is pictured on an Airbus plane in Colomiers near Toulouse

(Reuters) – Spirit Airlines <SAVE> on Friday cut its third-quarter outlook for a key revenue measure as it estimates an about $25 million hit on its sales, hurt by hundreds of flights cancellations due to Hurricane Dorian.

The company now expects third quarter unit revenue to fall between 2.5% and 3.5% compared to its prior estimate of a decline of 1% to 2%.

The hurricane has led airline operators including American Airlines <AAL.O> and Delta Air Lines <DAL.N> to cancel thousands of flights across the United States this week.

Dorian, which briefly made a landfall on the Outer Banks of North Carolina on Friday, is expected to bring tropical storm winds to Nantucket Island and Martha’s Vineyard, Massachusetts early on Saturday

https://in.reuters.com/article/us-storm-dorian-usa/hurricane-dorian-hits-north-carolinas-outer-banks-idINKCN1VR0OK.

(Reporting by Arundhati Sarkar in Bengaluru; Editing by Shailesh Kuber)

Discount Carrier Sun Country Prepares for IPO

August 29, 2019 / WIL BALDWIN

Sun Country Airlines,a small Minnesota-based, low-cost carrier owned by private-equity firm Apollo Global Management, plans to file for an initial public offering as soon as April, Sun Country’s CEO said Tuesday in an interview.

“Our earnings are supportive,” Jude Bricker told Skift at the International Aviation Forecast Summit in Las Vegas. “I think there’s a market for an airline that is growing.”

If Sun Country were to go public next year, it would be a fast turnaround for Apollo, which acquired the airline in December 2017. The previous owners, Mitch and Marty Davis, who also control Cambria, a maker of stone countertops, had managed Sun Country more like a family business than a medium-sized airline. Apollo has cut costs and changed the model, dropping first class, adding fees and making more it like Frontier Airlines or Spirit Airlines than an undersized competitor to Delta Air Lines or American Airlines.

Click the link for the full story! https://finance.yahoo.com/news/u-discount-carrier-sun-country-180032662.html

Spirit Airlines Looking at Airbus and Boeing Planes for Growth, Debuts WhatsApp

August 26, 2019 / WIL BALDWIN

LAS VEGAS (Reuters) – Spirit Airlines <SAVE>, a fast-growing, low-cost U.S. carrier that flies an all-Airbus SE <EADSY> fleet, is looking at both the Airbus A321neo and a larger Boeing Co <BA> aircraft to fuel its growth, Chief Executive and President Ted Christie said on Monday.

“The A321neo is certainly something we’re looking at, but we’re also in conversations with Boeing about their larger airplane too, so it’s all on the table,” Christie said at an aviation conference.

(Reporting by Tracy Rucinski; Editing by Steve Orlofsky)

MIRAMAR, Fla., Aug. 26, 2019 (GLOBE NEWSWIRE) — Spirit Airlines, the fastest growing airline in the United States, continues its commitment to invest in the Guest experience with an industry-leading technology to connect with its Guests via the messaging application WhatsApp. Beginning in September, the technology, powered by global conversational commerce solutions provider LivePerson, will open a new direct line of communication between Spirit’s English and Spanish-speaking Guest Relations and Reservations teams and the millions of Spirit Guests in the United States, the Caribbean, and Latin America, who already use WhatsApp every day.

“We launched this service to better connect with our Guests, both domestically and abroad, as many have told us that they would rather communicate on a familiar and convenient service like WhatsApp,” said Bobby Schroeter, Vice President of Sales & Marketing at Spirit Airlines. “We know WhatsApp is incredibly popular in the United States, but also in the more than two dozen destinations we serve in the Caribbean and Latin America. From travel updates to adding a bag to your reservation, this new messaging service allows Guests to communicate with us in English and Spanish and to opt in to WhatsApp messaging. It is all part of our goal to elevate and improve our Guest experience.”

The launch of WhatsApp support comes as a direct result of Spirit’s new partnership with LivePerson, a global leader in conversational commerce solutions. Beyond WhatsApp, the partnership also makes it possible for Spirit Guests who call to get immediate support by opting to begin a messaging conversation with Spirit representatives instead.

These new Guest solutions will also leverage LivePerson’s new AI-powered Maven Assist capability, which recommends the optimal next actions for human agents to take, including surfacing content or suggesting virtual assistants capable of responding to a Guest’s intent. Guests will still retain the ability to message with a live representative at any time during the process to address questions, comments and situations that are best suited for a live specialist.

“We’re excited to enable this new connection for America’s fastest growing airline, providing a powerful, engaging way for Guests to connect with Spirit on their own time,” said Rick Winnard, Global Head of Gainshare Programs at LivePerson. “Guests want to be able to ask questions, add products, and get immediate help without waiting, and with Spirit we’re making it possible for them to do so in the messaging channels they prefer.”

In addition to new WhatsApp and messaging support, Spirit will continue to serve its Guests via its social media channels, on Twitter and Facebook. Over the past two years, Spirit has heavily invested in the Guest experience touching all aspects of the journey, including on-time performance, Guest care technology, and in-flight products.

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