Spirit’s Next Frontier Could Leave Some Feeling Blue
Spirit Airlines rejected the takeover bid from JetBlue on Monday, with the carrier announcing its preference for the offer it first received from Frontier in February. JetBlue was undeterred by the news, sweetening its offer in a second attempt at purchasing Spirit.
In its decision to reject the first offer from B6, Spirit’s board said JetBlue’s offer would not receive regulatory approval due to JetBlue’s Northeast Alliance with AA; concerns over an ULCC being bought by an “upmarket” carrier, and the unstable reaction one can get when mixing yellow and blue paint. But shortly after Spirit announced it was spurning JetBlue, the carrier upped its offer to Spirit and paid a second takeover proposal fee of $12.99 to the airline.
The new offer from JetBlue includes a $200 million prenup that JetBlue would pay Spirit should the merger be kiboshed by the DOJ and a package divesting all Spirit assets in NYC and Boston to prevent the deal from being ended over JetBlue’s Northeast Alliance. The deal would acquire all of the outstanding common stock of Sprit for $33/share, which it says is a 47% premium over Frontier’s offer, even when taking into account JetBlue’s offer to change the name of the combined airline to BlueSpirit.
Qantas Orders 12 New Aircraft, Preps for Ultra Long Haul
Qantas Airways confirmed it placed an order for 12 A350-1000 ultra-long-haul aircraft which can fly from Australia to any other city – including New York and London – with the lone exception of Newark. The carrier is also adding firm orders for 20 A321XLRs and 20 A220-300s.
The A220s are expected to begin delivery late next year, with the A321s a year later. Qantas declined to name the price it paid for the planes other than to say it did receive a significant discount from the list price, which is obvious.
The A350s will be the centerpiece of Qantas’s much-anticipated Project Sunrise plan to serve both New York and London with nonstop service from Australia, starting as early as late in 2025. The aircraft will come with six first class seats in a 1-1-1 layout, 52 business class seats, 40 in premium economy and 140 in economy in a 3-3-3 layout for the paltry total of 238 seats. Qatar, as a comparison, puts 327 on its aircraft… when they aren’t grounded due to paint problems.
The Qantas aircraft will feature a wellbeing zone, located between the economy and premium economy cabins, which will be a communal space where all passengers can stretch, grab a drink or snack from a self-service bar, take a swing at a PGA Tour-branded golf simulator or try their hand at the first onboard mechanical bull.
Delta Finds New Friend Down Under
Delta Air Lines will begin interlining with all-around good boy Rex later this year after Delta’s 12-year dalliance with Virgin Australia ends in June.
Delta customers connecting on DL’s service from LAX to Sydney will be able to connect to Rex’s network of 60 routes in Australia while Rex customers will have access to Delta’s flight to LA and beyond in the United States. The partnership is also expected to include reciprocal recognition of elite status and eventually include mileage earning opportunities.
The deal marks Rex’s second interline agreement, but its first with an airline. The carrier recently inked a deal with Princess Cruises in Australia to combine cruise and air offers for customers making it a matter of time until Rex is knocking down Amtrak’s door to complete its land, air, and sea package.
- airBaltic is wet-leasing a B737-900ER from Ukraine International Airlines since that airplane has nothing better to do these days.
- Cargojet earned a Q1 profit of $67 million on $233 million in revenue.
- Cathay Pacific is resuming service between Hong Kong and Auckland next month.
- Delta will not operate its summer seasonal service between Salt Lake City and Cody, Wyoming this summer, giving one less city for Rex customers to potentially connect to on a four or five stop connecting itinerary.
- Emirates plans to refurbish the cabin of 67 A380-800s, fifteen more than previously planned, after getting a great deal at Beige Leather Emporium.
- Jet Airways says it will eventually hire male cabin crew as part of its relaunch, just not now.
- Libyan Airlines had its access to fuel cut off because of its casual relationship with paying its fuel bill.
- TAROM will receive €1.9 million in aid from the Romanian government in aid. Ryanair is expected to pitch a fit about the aid package any day now.
“There aren’t any words that contain every vowel in order,” I said facetiously.