Frontier’s Newest Frontier: Spirit
Frontier and Spirit announced their intentions to merge this morning, a deal that would create the 5th largest airline in the U.S. by passenger volume, but first in the known universe by fees assessed. The combined carrier would have 283 aircraft at the time of the merger, with growth opportunities to nearly 500 based on what each airline currently has on order.
The merger is being valued at $6.6 billion, with Frontier expected to control 51.5% of the new entity and Spirit the remaining 48.5%. Spirit had an opportunity to be the majority stakeholder, but backed off when Frontier agreed to pay a majority ownership fee to Spirit.
The two did not announce the name of the new combined carrier, the CEO, or where it would be based. Frontier said all three items were being studied carefully while Spirit was adamant all three were available to the highest bidder.
American and GOL Strengthen Partnership
American Airlines announced today that it signed a definitive investment agreement with GOL, growing the partnership between the two airlines.
Highlights of the deal include loyalty members of both frequent flier programs gaining access to benefits on both carriers including priority check-in, priority security, priority boarding, larger checked baggage allowances, lounge access, and preferred seating. The pair also expect to announce a greater joint loyalty offering for earning and burning miles later in 2022.
AA also agreed to invest $200 million into 22.2 million shares of GOL, giving AA a 5.2% stake in the Brazilian carrier.
Australia to Open Borders on February 21
Australia will reopen its borders to all international tourists and business travelers – provided they’re fully vaccinated (talking to you, Novak) – on February 21.
Visitors must have proof of their vaccination status to enter the country, while visitors with a valid medical exemption are permitted to apply for a travel exception. The country lifted entry restrictions for immunized Australians last November and let family members of citizens and permanent residents return in the middle of December.
But with nearly 93% of Australians fully vaccinated and Omicron present in every state and territory, the federal government saw no reason to continue restricting entry to the country.
- Allegiant announced John Redmond will become CEO, effective June 1.
- Flair is beginning weekly service to Cancun and and Las Cabos.
- Frontier grounded all flights this morning due to an IT issue. Spirit apologized for forgetting to turn off the sabotage plan that was in place if Frontier had rebuffed its overtures.
- SmartLynx is leasing two B737 MAX 8 aircraft.
- Southwest revealed in its most recent 10-K filing to the SEC that more than one out of six customers are traveling on Rapid Reward redemptions.
- Tarom laid of 200 employees.
- Virgin Australia customers can again redeem award bookings on Singapore.
My email password got hacked again today. It’s the third time in a row I’ve had to rename my cat.