With no profit to show since Covid, Spirit Airlines is discussing a possible restructuring in preparation for declaring bankruptcy, according to a report in The Wall Street Journal.

Citing “people who are familiar with the matter,” The Journal said Spirit has been talking bankruptcy since its failed merger with JetBlue Airways. The airline is struggling to compete with the big carriers, and was hard-hit when a recall of turbofan engines grounded many of its planes, including many that were supposed to fly to the new airport in Tulum, Mexico. Last month it furloughed 186 pilots.

As part of its efforts to enhance the bottom line, Spirit has been cutting flights and making changes to the services it offers. This summer it rolled out a premium “Go Big” fare class that offers a larger seat and early boarding, lifted its checked baggage limit from 40 to 50 pounds, and did away with change and cancelation fees.  Just this week it suspended nonstop service between Cleveland and Orlando, effective Nov. 5.

And still, it reported its 11th consecutive quarterly loss in August.

Countering an earlier rejection by Spirit Airlines of an offer to buy Spirit, JetBlue has launched a hostile takeover bid to motivate shareholders of the low-cost airline to reject a proposed acquisition by Frontier Airlines which has offered $2.9 billion. Read the rest of this entry »

Higher prices, delays, cancellations and bigger crowds are taking a toll on the satisfaction rating passengers assign their airlines. Load volume is up, and prices are up, but according to the J.D. Power 2022 North America Airline Satisfaction StudySM, satisfaction is down. Read the rest of this entry »

JetBlue (NASDAQ: JBLU) today confirmed it has submitted a proposal to the Board of Directors of Spirit (NYSE: SAVE) to acquire Spirit for $33 per share in cash, implying a fully diluted equity value of $3.6 billion. The proposal represents a premium of 52% to Spirit’s closing share price on April 4, 2022.

Frontier Airlines and Spirit Airlines announced plans to merge in February of this year. The competing offer by JetBlue would position the airline as the national low-fare challenger to the four large dominant U.S. carriers.

“Customers shouldn’t have to choose between a low fare and a great experience, and JetBlue has shown it’s possible to have both,” said Robin Hayes, JetBlue CEO. “When we grow and introduce our unique value proposition onto new routes, legacy carriers lower their fares and customers win with more choice. The combination of JetBlue and Spirit – coupled with the incredible benefits of our Northeast Alliance with American Airlines – would be a game-changer in our ability to deliver superior value on a national scale to customers, crewmembers, communities, and shareholders. The transaction would accelerate our strategic growth and create sustained, long-term value for the stakeholders in both companies.”

JetBlue Airways is the seventh-largest airline in North America by the number of passengers carried. JetBlue is headquartered in the New York City borough of Queens; and also maintains corporate operations in Florida and Utah.

JetBlue will launch new non-stop travel offerings between Boston Logan Airport (BOS) and London’s Gatwick Airport (LGW), and Heathrow Airport (LHR). The service will start on July 19, 2022, for Gatwick and on August 22, 2022, for Heathrow. JetBlue flights from Boston to Gatwick and Heathrow will operate daily.

“Our strategy of flying to both Heathrow and Gatwick Airports has been a success for us in New York, and we’ve secured slots to be able to do the same in Boston, becoming the only airline in New England offering flights to London’s two main airports,” said Robin Hayes, chief executive officer, JetBlue. “Our London service has been an incredible success so far and we’ve been able to go in with our unbeatable JetBlue service and experience and bring down fares on a traditionally overpriced route – the JetBlue Effect in action. We’re ready to do the same at Logan as we advance our growth strategies in both Boston and London.”

In response, Gavin Landry, VisitBritain’s vice president said: “We are thrilled to hear of JetBlue’s further expansion into London’s Heathrow and Gatwick airports with its service from Boston…we know travelers across the US are eager to return to Britain and experience all that is waiting for them.…it is time to share the stories of Another Side of Britain, made up of our vibrant and diverse cities, renowned heritage, contemporary culture, and so much more.”

The Gatwick and Heathrow routes from Boston with JetBlue’s new Airbus A321 Long Range (LR) aircraft. This new aircraft also has 114 core seats and 24 redesigned Mint suites. Roundtrip fares will begin at $499 for the core experience and $1,949 for the Mint experience for Boston-originating travelers flying to Gatwick. Meanwhile, roundtrip fares for Boston-originating travelers flying to Heathrow begin at $549 for core and $1,999 for Mint.