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Will United Airlines Back Out of Coliseum Naming Rights Deal?

Rumors are starting to swirl that United Airlines is considering backing out of a $69 million deal to add its name to the Los Angeles Memorial Coliseum.

The deal, which was offered to the University of Southern California in 2018, was offered by the Chicago-based airline to call the stadium “The United Airlines Memorial Coliseum.”

The deal, which was offered to the University of Southern California in 2018, was offered by the Chicago-based airline to call the stadium “The United Airlines Memorial Coliseum.”

Once the deal became public knowledge, criticism began to mount that the re-branding could tarnish the image of the stadium that was named in honor of those lost during World War I.

The Coliseum is currently going under a $270 million renovation by the university, which has responded to the airlines concerns by stating that “They are open to accepting the wishes of the veteran community to modify the name change agreement.”

United Airlines has responded to university officials that it has made “a significant commitment to financing this project” in exchange for the naming rights. The airline went on to add that “If USC is not in a position to honor the terms of the agreement, including in particular the name change, United would be amenable to abiding by the wishes of the community, stepping away from this partnership with USC, and mutually terminating the agreement.”

USC has responded that they are “open” to changing the agreement, but did not provide any further details.

Southwest Airlines Cuts 2019 Growth Forecast

(Reuters) – Southwest Airlines Co cut its forecast for first-quarter revenue per seat mile on Wednesday, citing weak passenger demand and a $60 million hit to first-quarter sales from the longest partial U.S. government shutdown.

The more than month-long hiatus in U.S. government decision-making prevented the country’s fourth-largest airline from launching its new route to Hawaii and led to widespread delays at airports.

Southwest had said previously that it expected a $10 million to $15 million impact on revenue in the first three weeks of January.

On Wednesday, it quadrupled that for the full quarter and cut its growth estimate for unit revenue to a range of 3 percent to 4 percent from an earlier range of 4 percent to 5 percent.

Shares of the company, which has also been cancelling flights in recent days due to a conflict with maintenance staff and weather issues, fell nearly 5 percent in early trading, with a Goldman Sachs “sell” recommendation for investors adding to the pain.

Though the company has now received permissions for test flights to Hawaii, Goldman Sachs analyst Catherine O’Brien argued the shutdown would result in a shortened selling window for the airline, forcing it to discount fares heavily.

“Most of the company’s schedule is published eight months in advance and we would have expected a three to six month selling window for its Hawaii flights,” O’Brien wrote in a note, downgrading the stock to “sell” from “neutral”.

“We now expect initial flights to have a one to one and a half month selling window, putting more pressure on management to fill planes in a shorter time frame,” she added, cutting price target on the stock to $54 from $66.

Southwest shares were last down 4.1 percent at $55.30.

The company said on Tuesday it would be investigating a doubling of the number of planes grounded with mechanical problems in recent days as it continues talks with its mechanics union on a new contract that have been ongoing since 2012.

Flight cancellations by Southwest accounted for roughly 24 percent of the nearly 800 total flights canceled across the United States on Tuesday, according to flight-tracking service FlightAware.com.

About half of the cancellations were related to unscheduled maintenance issues but the airline said it had yet to calculate the impact of the groundings on its results.

(Reporting by Ankit Ajmera and Rama Venkat in Bengaluru; Editing by Anil D’Silva)

China’s ICBC Firms Up Order for 80 Airbus Jets

PARIS (Reuters) – China’s ICBC Financial Leasing has firmed up an order for 80 Airbus (AIR.PA) A320-family jets worth $8.8 billion (£6.9 billion) at list prices, industry sources said on Monday.

The move is part of a buying spree from Asian lessors in the final hours of 2018 as Japanese-owned SMBC Aviation reached agreement for some 65 Airbus jets and Hong Kong-based China Aircraft Leasing (CALC) ordered 50 737 MAX from Boeing (BA.N).

Airbus declined comment. ICBC was not immediately available for comment.

(Reporting by Tim Hepher; Editing by Sudip Kar-Gupta)

Image from http://cn.linkedin.com

Airline Stocks That Look Ready to Rise

Barron’s says it’s going to be another good day for airlines, as a number of analysts had good things to say about stocks across the sector.

Where we were: Airlines have struggled this year, but Spirit Airlines (SAVE) upbeat fourth-quarter forecast sent shares soaring Tuesday.

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