Alaska sells door-plug-blowout Max 9 back to Boeing
July 02, 2024
Alaska Airlines has entered into a purchase agreement with Boeing for the 737 Max 9 that was involved in the January 2024 door-plug incident. "They have taken possession of it and the registration has been changed. It is no longer part of our fleet," Alaska says, referring to the aircraft bearing MSN 67501 and registration N704AL. Asked how much Boeing paid it for the widebody, Alaska says the "financial details of the agreements are confidential". In May, the airline received $61 million in supplier credit memos from Boeing to be used on future purchases. The receipt of those funds represented the latest compensatory move taken by the airframer on behalf of Alaska following the door-plug blowout event. During the first quarter of this year, Boeing paid Alaska $162 million in cash compensation for the financial damage incurred as a result of the Max 9 grounding. The Seattle-headquartered airline adds that it has placed an order for a new Max 10. Alaska is one of the biggest customers for the Max 10, behind United Airlines, Ryanair, Delta Air Lines, VietJet Air, WestJet and Lion Air.
Fiji Airways to adopt AA's loyalty programme
July 01, 2024
Fiji Airways will join American Airlines' AAdvantage loyalty programme within the next year in a move that appears aimed at driving traffic from North America. The loyalty announcement comes as the Fijian carrier prepares to become a full member of the Oneworld alliance next year, having joined as a connecting partner in December 2018. "This new loyalty partnership marks a significant milestone for Fiji Airways and will offer new benefits to millions of travellers," says the carrier's chief executive Andre Viljoen. "By gaining access to a vast network of American travellers, this collaboration also aims to increase visitor arrivals to Fiji, bolstering the nation's tourism industry." Schedules data shows that American codeshares on Fiji Airways' flights from Los Angeles and San Francisco to Nadi, while the Fijian carrier places its code on 363 weekly US domestic flights operated by American. It is unclear how the AAdvantage tie-up will work with Fiji's existing Tabua Club loyalty programme.
Boeing to buy Spirit AeroSystems in $4.7 billion deal
July 01, 2024
Boeing has agreed to acquire Spirit AeroSystems in an all-stock transaction at an equity value of about $4.7 billion, with Airbus set to acquire the parts of the business that supply its programmes. The total transaction will be valued at $8.3 billion, including Spirit's last reported net debt, the airframer says in a 1 July announcement. “Boeing's acquisition of Spirit will include substantially all Boeing-related commercial operations, as well as additional commercial, defence and aftermarket operations,” it states. Spirit supplies airframe sections and components for Boeing's 737, 767, 777 and 787 commercial aircraft programmes. In a separate statement, Airbus says it has also entered into a binding term sheet agreement with Spirit to potentially acquire “major activities related to Airbus”. They include the production of A350 fuselage sections in Kinston, North Carolina, and St. Nazaire, France and also production of the A220’s wings and mid-fuselage in Belfast, Northern Ireland, and Casablanca, Morocco, as well as A220 pylons in Wichita, Kansas. Airbus adds that it will be paid $559 million by Spirit AeroSystems, for a nominal consideration of $1 for the transaction. Boeing president and chief executive Dave Calhoun says: “We believe this deal is in the best interest of the flying public, our airline customers, the employees of Spirit and Boeing, our shareholders and the country more broadly. "By reintegrating Spirit, we can fully align our commercial production systems, including our Safety and Quality Management Systems, and our workforce to the same priorities, incentives and outcomes – centered on safety and quality." Boeing says the transaction is expected to close in mid-2025. Spirit is also proposing to sell parts of its operations, including those in Belfast, Prestwick in Scotland, and Subang in Malaysia, the airframer adds. PJT Partners acted as lead financial advisor to Boeing, with Goldman Sachs & Co and Consello acting as additional advisors, while Sullivan & Cromwell acted as outside counsel.