Airlines

Category Archives for Airlines.

Spirit Airlines Shareholders Should Take The JetBlue Deal. You Should Hope They Don’t.

by Gary Leff on June 29, 2022

Jun 29 2022

JetBlue’s proposed deal to acquire Spirit Airlines is better for Spirit shareholders than Frontier’s is. Spirit management supports the Frontier deal, and it will probably be approved. JetBlue is offering 40% more for Spirit Airlines than Frontier is. With Spirit’s shares falling to slightly below Frontier’s offer, the market thinks the successful suitor will be Frontier, not JetBlue.

However a Frontier deal for Spirit is actually better for consumers, even though JetBlue’s product is better than the one offered by either airline.

Virgin Atlantic Introduces Minimum Award Space Guarantee, Double Miles Awards For Gold Elites

by Gary Leff on June 29, 2022

Jun 29 2022

Virgin Atlantic is launching two positive changes for its Flying Club frequent flyer program. They’re guaranteeing to release a minimum number of award seats when loading a flight into the schedule, and they’re allowing Gold elite members to book any seat they want that’s for sale as an award ticket by spending double miles.

Somewhat counterintuitively the introduction of double miles awards without capacity controls are actually the bigger deal here for the program, I think.

Flash Award Sale: Delta Business Class To Europe For 148,000 Miles Roundtrip

by Gary Leff on June 28, 2022

Jun 28 2022

Delta is running a flash sale on business class SkyMiles awards to Europe. Prices start at 148,000 miles roundtrip, which is roughly what other programs normally charge. But it can be half what Delta frequently charges, and availability is pretty good. But you have to act fast.

The FAA Is Delaying United’s And American’s Electric Air Taxis By Years

by Gary Leff on June 28, 2022

Jun 28 2022

New aircraft are coming, but they’re farther off than they’ve been promised. And electric air taxis just got even farther off still, thanks to the U.S. federal government. In fact these planes are looking at delays of years. Some manufacturers may not have the financing to get through certification in the current market environment.

JetBlue Doesn’t Know When To Quit, Raises Offer To Buy Spirit Airlines

by Gary Leff on June 27, 2022

Jun 27 2022

When Frontier Airlines raised its offer to buy Spirit Airlines and gave the Spirit Airlines board cover to again endorse a merger between the two airlines (walking away from a much bigger offer from JetBlue that faces greater anti-trust scrutiny) it seemed like game over. The new offer even got the endorsement from two independent proxy advisory firms.

JetBlue isn’t done though. They’ve come out with a new, increased offer in advance of Thursday’s Spirit Airlines shareholders meeting, a last ditch effort.

Airline Travel Is Brutal Now. Here’s How Much Airline CEOs Make Bringing It To You

by Gary Leff on June 26, 2022

Jun 26 2022

Airlines lost billions of dollars during the pandemic. But their leaders shed costs, in many cases by downsizing staff and brought in government subsidies (designed to keep them from shedding staff). It was a test of leadership, and CEOs were rewarded handsomely for the task.

It’s a wet hot American summer of flying through delays, cancellations, and long lines at airports. It may be a comfort to know that airline CEOs were well paid bringing it to us.

Erin Andrews Calls For Airline Regulation Over Delta’s Poor Performance

by Gary Leff on June 25, 2022

Jun 25 2022

We need more competition and we need more capacity, at airlines and in airspace. Hand waving that ‘the government should do something’ isn’t enough without specifying what the government should do. But, as Erin Andrews demonstrates, there’s a felt need out there for ‘something’ to be done.

Frontier Airlines Increases Offer For Spirit, Spirit Board Tells JetBlue To Pound Sand

by Gary Leff on June 24, 2022

Jun 24 2022

Frontier Airlines increased its offer by $2 per share to acquire Spirit, and the Spirit Airlines board unanimously recommends it over JetBlue’s more lucrative – but regulatorily more risky – offer. That’s still less than the closing price of Spirit Airlines stock on Friday.

First Airline Makes A Statement After Supreme Court Overturns Roe v. Wade

by Gary Leff on June 24, 2022

Jun 24 2022

Airlines scrupulously avoided speaking out on abortion after the Supreme Court’s ruling in Dobbs v. Jackson Women’s Health Organization was leaked – despite taking positions on issues like voting reform, affirmative action, and gun control.

However now that the Court’s decision has been published, Alaska Airlines has become the first U.S. carrier to put out a statement.

The Irony Of American’s New Business Traveler Upsell Fares

by Gary Leff on June 23, 2022

Jun 23 2022

The strange thing is that American Airlines had bundled fares a decade ago – and US Airways management eliminated the idea after taking over the airline. Now they’re bringing it back.