Tag: imposing

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)

United Orders 50 New Airbus Long-Range Jets to Replace Boeing 757’s

December 3, 2019 / WIL BALDWIN

CHICAGO, Dec 3 (Reuters) – United Airlines Holdings Inc announced on Tuesday an order for 50 Airbus SE A321XLR jets to fly between the U.S East Coast and Europe, becoming the latest U.S. airline to ink a deal for the European planemaker’s new passenger jet.

The long-range A321XLR jets will replace United’s 53 Boeing 757-200 planes beginning in 2024, the Chicago-based planemaker said, flying to cities like Porto, Portugal and other potential new destinations.

United’s 757 planes will reach the end of their lifespan in about a decade and Boeing Co is not building any more of the large single-aisle model.

Instead, the U.S. planemaker has been considering a new twin-aisle plane, provisionally known as the NMA, but has delayed a launch decision until 2020 while it manages the ongoing global grounding of its 737 MAX jets following two fatal crashes.

United’s chief operating officer Andrew Nocella told reporters the airline has worked closely with Boeing on the potential new aircraft and is still open to orders if the planemaker decides to move forward with developing the NMA.

Meanwhile, U.S carriers including American Airlines Group Inc, JetBlue Airways Corp and Spirit Airlines Inc have agreed orders for Airbus A320neo-family jets.

Among the benefits of the A321XLR is a 30% lower fuel burn per seat compared to previous generation aircraft, United said.

United has also ordered the larger A350 widebody jets but said it is deferring delivery of those jets until they are needed in 2027.

Its A321XLR order is the second for a U.S. carrier following tariffs that the United States is imposing on European-made aircraft.

(Reporting by Tracy Rucinski Editing by Chris Reese and Michael Perry)

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 Buy 100 Airbus A320neo Family Aircraft

United Orders 50 New Airbus Long-Range Jets to Replace Boeing 757’s

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

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