In seperate statements on March 4, 2024, JetBlue and Spirit confirmed that the two airlines had agreed to terminate their July 2022 merger agreement.听

The two airlines cited 鈥渃urrent regulatory obstacles鈥� that would not allow them to finalize the transaction in a 鈥渢imely fashion under the merger agreement鈥�. 

On January 16, 2024, a federal judge blocked JetBlue精东影业 $3.8 billion takeover of the ultra-low-cost airline.听聽

It was successfully argued by the that customers who rely on Spirit精东影业 cheaper fares 鈥渨ould likely be harmed鈥� by the merger and lessen competition.听聽

Both JetBlue and Spirit have always maintained that the deal would in fact reduce the price of tickets for passengers. 

An appeal submitted by the airlines which was required under the merger agreement was expected to fail. 

“We are disappointed we cannot move forward with a deal that would save hundreds of millions for consumers and create a real challenger to the dominant “Big 4″ U.S. airlines. However, we remain confident in our future as a successful independent airline. We wish the JetBlue team well,” Ted Christie, Spirit’s President and CEO, said. 

Under the agreement, JetBlue will pay Spirit $69 million and the termination resolves all outstanding matters related to the transaction. 

鈥淲e believed this merger was worth pursuing because it would have unleashed a national low-fare, high-value competitor to the Big Four airlines,鈥� Joanna Geraghty, CEO of JetBlue, said. 鈥淲e are proud of the work we did with Spirit to lay out a vision to challenge the status quo, but given the hurdles to closing that remain, we decided together that both airlines鈥� interests are better served by moving forward independently. We wish the very best going forward to the entire Spirit team.鈥�  

JetBlue launched a takeover bid for Spirit in 2022.听

After its failed JetBlue merger, what does the future hold for Spirit Airlines?聽

• Airlines
• Analysis
• Aviation Economics & Finance

byLuke Peters

2024-01-18

Canadian media first mooted the possibility of a merger between the two budget carriers at the start of February 2024, while The Toronto Star newspaper has cited three industry sources that have each said that a finalized deal is 鈥渁lmost done鈥�. The agreement would effectively see Edmonton-based Flair and its 20-strong aircraft fleet take over Calgary-based Lynx, which operates nine aircraft.听

Many observers opine that the current Canadian budget air travel market cannot sustain the current number of low-cost carriers currently operating. Additionally, both Flair and Lynx are offering fares that experts say are 鈥渦nsustainable鈥� in the long run. While WestJet shut down their low-cost offshoot Swoop in October 2023, fledgling carrier Canada Jetlines also competes in the same market segment. While the latter operates just three A320s for the time being, it has plans to grow to 15 by the end of 2025.听聽

Flair is partly owned by Miami-based private equity firm 777 Partners, while Lynx is partly owned by Phoenix-based Indigo Partners. 777 Partners holds a stake in Australian budget carrier Bonza, among its other investors. Indigo has extensive low-cost airline experience, having stakes in several other airlines including US-based Frontier Airlines, Mexico精东影业 Volaris, and Hungarian ULCC Wizz Air. Despite this, both Flair and Lynx meet Canadian ownership regulations.  

Since its inception in June 2023, Lynx has been modestly growing its fleet and route network. Flair, on the other hand, has had a more troubled journey since it first started flying in 2006.听聽

It has been forced to make changes to its ownership and board composition to meet Canadian ownership rules, and in March 2023, had four of its Boeing 737s seized by an Irish leasing company, Airborne Capital, that claimed it had fallen behind on payments. A $50 million lawsuit is currently ongoing in the Candia courts between the leasing firm and the carrier. Compounding its issues, in November 2023, Flair was ordered by the Canadian Revenue Agency (CRA) to pay CAD$67.2 million (in unpaid aircraft import duties. The order, although backed by the potential seizure of assets that could include aircraft, the CRA described this as 鈥渁 last resort.鈥澛�

In a recent press conference held by Flair Airlines CEO Stephen Jones, when asked about the merger rumors, he declined to comment any further. During the same event, Jones stated that despite the issues being faced by the carrier in 2023 Flair canceled a smaller percentage of flights than any other Canadian carrier and posted the second-best on-time performance for any Canada-based airline for the year. In 2023, Flair carried 4.5 million passengers, an increase of 1.5 million more passengers than in 2022. 

According to ch-aviation, Flair精东影业 existing fleet consists of a pair of Boeing 737-800s plus a further 18 737 MAX 8s, although two of these are currently leased out to sister airline Bonza. The current Lynx fleet is made up of nine 189-seat 737 MAX 8s with an average age of 2.9 years.听

Exploring the use of robotics and automation to enhance airport ground handling

• Aviation Technology and Innovation

byJean Carmela Lim

2024-07-06

The Norwegian Competition Authority, a government agency, confirmed on December 21, 2023, that it had approved Norwegian’s acquisition of 奥颈诲别谤酶别. 

In November 2023, the Competition Authority had threatened to block the merger on the basis that it would 鈥渟ignificantly weaken competition in the market鈥�. 

However, after receiving responses from both Norwegian and 奥颈诲别谤酶别, the agency concluded that there were 鈥渋nsufficient grounds to stop the acquisition鈥�. 

Tina S酶reide, Director of the , said: 鈥淚t has been necessary to make a thorough assessment of the acquisition. We have now concluded that this acquisition will not significantly hinder effective competition in the Norwegian aviation market. Therefore, the acquisition can now be carried out.鈥�  

On July 6, 2023, Norwegian announced that it had reached an all-cash NOK 1,125 million (approximately $105 million / 鈧�97 million) deal with WF Holding AS, the parent company of 奥颈诲别谤酶别. 

鈥淲e are very satisfied that the Norwegian Competition Authority has reached this decision and that our input has been listened to. The acquisition will give customers a better route offer, more options, and will help secure Norwegian jobs,鈥� Geir Karlsen, CEO of Norwegian, said in response to the latest development.  

The CEO of 奥颈诲别谤酶别, Stein Nilsen, was equally pleased at securing the takeover, saying that he 鈥渃ouldn’t have wished for a better Christmas present鈥�. 

Norwegian acquires major regional carrier 奥颈诲别谤酶别聽聽

• Airlines

byMiquel Ros

2023-07-06

The tie-up with Hawaiian would give Alaska control of more than 50% of the market for US to Hawaii flights, which is described as one of the world’s most popular tourist destinations. 

Alaska Airlines has agreed to pay $18 per share, almost four times Hawaiian’s most recent market share value. The inflated offer is an indication of the beleaguered state of Hawaiian精东影业 share price following several key issues that have adversely affected the island airline in the past year.听聽

The Maui wildfires, high fuel costs, and ongoing engine recall issues affecting Hawaiian’s Airbus A321neo fleet have all contributed to heavy losses and a resulting 65% share price drop over the last 12 months. 

The takeover move will create the fifth-largest US airline with a combined fleet of 365 aircraft. The deal creates a combined network offered by the two airlines of 138 destinations and over 1,200 destinations through Alaska Airlines鈥� membership of the oneworld Alliance. 

Currently, Alaska Airlines operates on 311 routes, on which it competes directly with Hawaiian on just 12 (4%) of those. Therefore, the airlines complement each other pretty well. The deal also significantly strengthens the combined airlines鈥� dominant position on the US West Coast, where both have a strong presence at key gateway airports such as Los Angeles (LAX), San Francisco (SFO), and Seattle (SEA). 

However, while the airlines鈥� route networks may complement each other, their fleets do not. The Alaska Airlines fleet features 229 Boeing 737s supplemented by 81 Embraer ERJ-170s operated by its partner, Horizon Air. Meanwhile, Hawaiian精东影业 fleet consists of 18 A321neos, 21 Airbus A330-200s, plus 19 aging Boeing 717 twinjets. It also has 12 Boeing 787-9 Dreamliners on order.听聽

The takeover will see each airline maintain its own identity but will offer passengers a single, merged loyalty program. The aims of the new partnership, according to Alaska Airlines, are 鈥渢o strengthen service in Hawaii, particularly for residents with expanded Continental US access and new connections to Asia and the Pacific. Honolulu will become a strategic hub, enhancing international connectivity through Hawaii鈥�. 

“Hawaii is where people want to come to spend time and vacation and have weddings and anniversaries,鈥� said Alaska Air CEO Ben Minicucci. 鈥淭his is something that we believe will remain strong for years to come.”  

The deal is bound to attract antitrust scrutiny from US authorities. US regulators are already busy challenging the proposed $3.8 billion takeover of low-cost carrier Spirit Airlines by JetBlue Airways. With 80% of the US market dominated by just four major players (American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines), authorities are taking a more stringent approach when dealing with other deals that could potentially lead to further consolidation in the marketplace.  

The deal has a projected closing time of 12-18 months, but this will depend on both the obtaining of regulatory approvals and shareholder consent at both airlines. 

This article delves into the rise, expansion, fleet, mergers, and eventual decline of US Airways, shedding light on its significant contributions and ongoing legacy.听

Early years and expansion 

US Airways鈥� origins can be traced back to 1937 when the company was incorporated as All American Aviation. Initially, All American Aviation focused primarily on airmail services, transporting mail between small communities in Pennsylvania. 

The airline’s early operations relied on a fleet of small aircraft, including the Stinson Reliant, a popular single-engine aircraft of the time. These aircraft were suitable for short-haul flights and enabled All American Aviation to serve the needs of local communities efficiently. However, as the demand for passenger transportation grew, the airline recognized the potential for expansion beyond airmail services.听

In the late 1940s, All American Aviation expanded its operations to include scheduled passenger flights. It acquired larger aircraft, such as the Douglas DC-3 and Convair 240, which offered improved capacity and range. These aircraft became the workhorses of the airline, connecting various cities and towns across the region. 

With the introduction of passenger services, the airline underwent a name change and in 1949 it became known as All American Airways. This shift in focus marked a significant milestone in the company’s evolution, seeing it transition from a mail carrier to a regional passenger airline. 

As All American Airways continued to expand, the airline established more routes across the United States (US), particularly in the northeastern and mid-Atlantic regions. It aimed to connect smaller communities with larger cities and became a vital transportation link for both passengers and cargo.听

All American Airways underwent further transformations in the following decades, including another name change in 1979 when it became USAir. This rebranding aimed to position the airline as a national carrier and reflect its growing presence beyond its regional roots. 

Through strategic acquisitions and partnerships, USAir continued to expand its route network and enhance its capabilities. Allegheny Airlines, one of the earliest incarnations of USAir, underwent a transformative journey as it acquired Mohawk Airlines. This strategic move enabled the integration of its operations and propelled US Airways onwards to expand its reach into new markets. 

By the 1990s, USAir had become a major player in the aviation industry, operating a diverse fleet that included modern jet aircraft such as Boeing 737s and Airbus A320s. The airline established hub operations at airports such as Pittsburgh International Airport and Philadelphia International Airport, facilitating efficient connections for passengers traveling across the country. It also began flights to Europe. 

During this period, USAir also made significant advancements in technology and customer service, launching online reservation systems and implementing frequent flyer programs and Star Alliance membership in order to enhance the customer travel experience. 

In 1997, USAir officially rebranded as US Airways.  

Fleet development and modernization of US Airways聽

Throughout its history, US Airways demonstrated a commitment to fleet development and modernization. The airline recognized the importance of operating a diverse and efficient fleet to meet the evolving demands of the aviation industry.  

Let’s take a closer look at its fleet development and efforts toward modernization: 

• Boeing 737 and Airbus A320 series: US Airways incorporated the Boeing 737 and Airbus A320 narrow-body aircraft into its fleet, which became the backbone of its operations for medium-haul and domestic routes. 

• Wide-body aircraft: US Airways also operated wide-body aircraft to serve its long-haul international routes. The airline utilized the Boeing 767 and Airbus A330, among others, to provide intercontinental service to destinations in Europe, the Caribbean, and South America.听

• Regional jets: recognizing the importance of connecting smaller communities and feeding traffic to its hub airports, US Airways introduced regional jets into its fleet. The airline relied on the Embraer regional jet E190 to serve as feeder aircraft, linking passengers from smaller regional airports to major hubs.听

• Fleet renewal and retirement: starting from 1989 till 2002 US Airways聽retired its fleet to replace older, less efficient aircraft with more cutting-edge models. This initiative aimed to optimize operational efficiency, reduce maintenance costs, and improve the overall passenger experience. As part of this program, the airline phased out older aircraft such as the Boeing 727 and Douglas DC-9 and replaced them with newer, more technologically advanced alternatives.听

• Passenger comfort and amenities: as part of its fleet modernization efforts, US Airways also focused on enhancing the passenger experience. The airline invested in cabin upgrades, including improved seating, in-flight entertainment systems and connectivity options. 

Merger with other airlines 

US Airways actively pursued mergers as a strategic approach to expand its operations and strengthen its position in the airline industry.  

Here are some key mergers that played a significant role in shaping the trajectory of US Airways: 

Acquisition and integration of regional airlines 

US Airways further bolstered its operations through the acquisition and integration of regional airlines, such as Piedmont Airlines and Mohawk Airlines. These acquisitions allowed US Airways to tap into smaller markets and strengthen its regional feed to major hub airports. 

Mohawk Airlines, acquired in 1972, also played a crucial role in enhancing US Airways’ regional connectivity and passenger base. Piedmont Airlines, acquired in 1987, brought a significant regional presence to US Airways. It operated as a US Airways subsidiary and helped the airline expand its reach in the eastern US. 

Merger with America West Airlines 

In 2005, US Airways merged with America West Airlines, resulting in the formation of the new US Airways Group. This merger created a stronger and more competitive airline, by combining the resources, networks and expertise of both carriers. By leveraging synergies and streamlining operations, the merged entity aimed to enhance customer service, increase efficiency and improve profitability. 

The merger with America West Airlines enabled US Airways to expand its route network, particularly in the western US. It allowed the airline to tap into new markets and connect more passengers to an extensive range of destinations. 

Challenges and restructuring聽of US Airways

This is a timeline of the major events relating to later challenges faced by US Airways: 

• September 11, 2001: the terrorist attacks on the World Trade Center and the Pentagon occurred, resulting in a significant decline in air travel demand and negatively impacting the entire airline industry, including US Airways. 

• 2002: US Airways filed for Chapter 11 bankruptcy protection in August due to the financial strain caused by the aftermath of the September 11 attacks, economic downturns, rising fuel costs and intensified competition. 

• 2002-2005: US Airways underwent a comprehensive restructuring effort while operating under bankruptcy protection. This period involved cost reduction measures, fleet optimization, route adjustments, labor negotiations, and the development of a restructuring plan to improve efficiency and financial stability.

• 2005: US Airways successfully emerged from bankruptcy in March after implementing various restructuring measures and receiving financial support. 

Merger with AA聽

However, the airline’s story took a critical turn in 2013 when it announced its merger with AA. The merger between US Airways and American Airlines created the largest airline in the world at that time. The combined company retained the AA name and became a dominant player in the industry, with an extensive network of routes, increased fleet size, and enhanced operational capabilities.  

Following the merger, the US Airways brand was gradually phased out, while the airlines worked towards integration. Over time, aircraft were repainted in the AA livery, and operational processes were aligned under the AA brand. This is how US Airways closed its chapter.  

US Airways legacy

Despite its struggles, US Airways left a significant legacy within the aviation industry.  

It pioneered several initiatives, such as: 

• Hub-and-spoke system: US Airways played a pivotal role in popularizing and refining the hub-and-spoke system, a network model used by many airlines today. The airline strategically established hubs at major airports from 1979 to 2011, such as Charlotte, Philadelphia, and Phoenix, which served as central connecting points for passengers traveling to various destinations. The hub-and-spoke system allowed for efficient flight connections and increased route options for travelers. 

• Online reservations: US Airways was an early adopter of online reservation systems in the mid-1990s. It implemented online booking platforms, allowing customers to make flight reservations at their convenience, select seats and manage their travel itineraries through the airline’s website. This innovation significantly transformed the way in which passengers interacted with airlines and simplified the booking process. 

• Loyalty programs: US Airways introduced and operated a robust frequent flyer program called Dividend Miles in 1988. The loyalty program offered rewards and benefits to frequent travelers, allowing them to accumulate miles and redeem them for free flights, upgrade and other perks. Following the merger with AA, the Dividend Miles program was integrated into American Airlines’ AAdvantage program, expanding the benefits and opportunities for loyal customers. 

On November 2, 2023, Asiana confirmed that its board has given the green light to sell its cargo segment, allowing for the planned merger to take a step forward.  

The sale of Asiana精东影业 cargo operations was required to help alleviate tensions with the European Commission (EC) over competition rules.听 聽聽

The EC had previously told the two South Korean carriers that a merger could 鈥渞educe competition in the provision of cargo transport services between all of Europe and South Korea鈥�.   

However, there is still the issue of 鈥減assenger transport services on four routes between South Korea and France, Germany, Italy and Spain,鈥� according to the EC. 

According to Reuters, in a statement by Korean Air the carrier said that a package of remedies had been sent to the EC including giving up operations to some European cities. 

Nikkei Asia also reported that Korean Air said it will buy $220 million of convertible bonds issued by Asiana to support the smaller airline. 

“While Korean Air continues its efforts to secure the approval from the European Commission, the airline will also communicate closely with the remaining regulatory bodies to finalize the approval process as quickly as possible,” Korean Air said in a statement. 

As well as the European Union, Korean Air are seeking approval for the merger from the United States and Japan.听聽

Asiana Airlines delays final decision on Korean Air takeover bid聽

• Airlines

byIan Molyneaux

2023-10-31

Executives from both airlines met on October 31, 2023, to discuss the agreement which includes the sale of Asiana精东影业 cargo operations to placate the European Commission精东影业 (EC) competition rules.听聽

“The board meeting that is now in recess will resume in early November and make a final decision,” Asiana said in a statement.听

According to , Korean Air planned to submit a corrective action plan to the EC to gain approval for the merger by the end of October 2023, but due to the failure to reach an agreement between the two carriers that deadline will now be missed.听聽

Korean Air still need to get approval from the European Union, Japan and the United States for the airline merger.  

In March 2023, the UK精东影业 Competition and Markets Authority (CMA) gave the merger between Korean Air and Asiana its approval.  

Among the conditions Korean Air had to agree to was making slots available for Virgin Atlantic to operate between London and Seoul.     

News of a merger between Korean Air and Asiana first emerged in November 2020, with Korean Air set to take over an estimated 31% stake in Asiana. 

The EC精东影业 main concerns are that the merger between Korean Air and its smaller rival will 鈥渞educe competition in the provision of passenger transport services on four routes between South Korea and France, Germany, Italy and Spain鈥� and that it will 鈥渞educe competition in the provision of cargo transport services between all of Europe and South Korea鈥�. 

According to , a decision from the United States Department of Justice (DOJ) is still expected to take some time as it looks to further explore appropriate remedies.听聽

EU Commission sends Korean Air statement of objections over Asiana takeover

• Airlines

byIan Molyneaux

2023-05-18

The merger is scheduled for October 2023, and according to the carriers, it will bring together the 鈥渂est qualities of both airlines鈥�. 

After the merger, all Buta Airways flights will be operated under AZAL at the 鈥渃urrent affordable prices, but with a higher level of service鈥�. 

鈥淭he merger will further expand the opportunity for our passengers to travel at affordable rates, as well as ensuring that our customers can easily plan their journeys and increase the level of service provided to them,鈥� AZAL said in a statement. 

AZAL will offer the new luggage-free 鈥楤uta Budget鈥� fare on all its flights to ensure air transportation is accessible for every passenger. 

The airline confirmed that hand luggage will be included in all fares, and the baggage allowance will be increased, except for the 鈥楤uta Budget鈥�. 

Passengers will be updated with new details surrounding prices and will be able to book flights on the single website.听

According to ch-aviation.com, Azerbaijan Airlines currently has 26 active aircraft, including seven Embraer ERJ-190s and five Airbus A320-200 jets. Buta Airways has a fleet of six active Embraer ERJ-190s.听

Jet Airways鈥� return is on the horizon with the renewal of its AOC

• Airlines

byRytis Beresnevicius

2023-07-31

In a New Year精东影业 message to Korean Air employees seen by Seoul-based news agency , Cho said that it plans to launch the merged air carrier in 2024 after completing the takeover process in 2023, as well as route expansion and cutting aircraft maintenance costs.

鈥淲e need to analyze what destinations customers prefer after the pandemic when they resume travel, and what in-flight services they want as a wave of reopenings will further spur a surge in demand for plane travel,鈥� the CEO was cited as saying.

UK competition watchdog to consider revised Korean Air-Asiana merger plan

• Airlines

byGabriele Petrauskaite

The South Korean government first announced its intention to merge Korean Air and Asiana in November 2020, with Korean Air set to take over an estimated 31% stake in Asiana. But in March 2021, the merger was delayed because the deal did not receive the necessary approvals from foreign antitrust authorities.

Korean Air to recruit 100 cabin crew, prepares for spike in passenger traffic

• Airlines

byGabriele Petrauskaite

While the takeover was further delayed, South Korea approved the takeover on February 22, 2022. The $1.6 billion deal is expected to create a new airline that will operate around 60% of international routes out of and into South Korea as well as provide regional connectivity services and serving cargo routes across the Asia-Pacific region.

According , released on November 28, 2022, the authority is assessing the new measures Korean Air has proposed in order to address competition concerns. The South Korean flag carrier has adjusted its $1.29 billion plan dedicated to buying out Asiana Airlines.  

鈥淭he CMA considers that there are reasonable grounds for believing that the undertakings offered by Korean Air Lines Co., Ltd, or a modified version of them, might be accepted by the CMA under the Enterprise Act 2002,鈥� the authority said.  

The CMA has previously raised concerns regarding Korean Air精东影业 proposal once on November 14, 2022, where the regulator said that the deal between the two South Korean airlines could result in higher prices and a reduced quality of service for passengers flying between London and Seoul.鈥�  

Korean Air reactivates one of its Airbus A380s

• Airlines

byRytis Beresnevicius

2022-11-10

The CMA also found that since both Korean Air and Asiana Airlines are the two main suppliers of direct cargo services between the UK and South Korea, the merger raises competition concerns in the supply of air cargo services between the countries.  

鈥淭he deal could therefore result in higher costs for UK businesses transporting products to or from South Korea,鈥� the CMA said in a on November 14, 2022.  

鈥淜orean Air and Asiana Airlines are the two main players on the London to Seoul route and the deal risks UK customers and businesses paying over the odds or receiving a lower quality of service,鈥� CMA senior mergers director Colin Raftery said.  

Korean Air to inspect Airbus A330s after runway excursion, engine incidents

• Aviation Safety

byVictoria Bryan

2022-11-02

The CMA plans to announce its decision by January 26, 2023.  

When will Korean Air finally merge with Asiana Airlines?  

The South Korean government first announced its intentions to merge Korean Air and Asiana in November 2020, with Korean Air set to take over an estimated 31% stake in Asiana. But in March 2021, the merger was delayed because the deal did not receive the necessary approvals from foreign antitrust authorities.  

The merger plan needs to be approved by several regulators such as the European Union, the United States, China, Japan, Taiwan, Thailand, and Vietnam.   

Once the process is completed, the combined carrier will be focused on serving regional South Korean airports as well as operating regional passenger and cargo Asia-Pacific routes. It is expected that the merger deal will be completed by 2024. 

Korean Air to recruit 100 cabin crew, prepares for spike in passenger traffic

• Airlines

byGabriele Petrauskaite

2022-10-17