ARC NEWS
Southwest aircraft is hit by gunfire at Dallas Love Field
November 19, 2024
Following shootings of three US-registered aircraft in Haiti last week, a Southwest Airlines Boeing 737 has been struck by gunfire – this time on US soil. The 737, MSN 61865, operating flight WS2494 bound for Indianapolis, was struck by gunfire "near the cockpit" around 20:30 local time on 15 November while taxiing for takeoff from Dallas Love Field, according to the US Federal Aviation Administration. It adds that the aircraft returned to the gate and passengers were deplaned. "No injuries were reported and Southwest accommodated our customers on another flight," the airline advised. Southwest adds that the replacement flight "continued to Indianapolis only after the Dallas police had ascertained that there was no ongoing threat to public safety and the airport authority had reopened the runway for normal operations". The jet is nearly four years old and was originally delivered to Southwest in January 2021 with SMBC Aviation Capital listed as the manager, fleets data shows. It is one of 13 Max 8s that SMBC Aviation Capital manages for Southwest. Last week on 11 November, three US-registered aircraft operated by American Airlines, JetBlue and Spirit Airlines were hit by gunfire in Haiti. Two of those jets were managed by lessors.


​Spirit Airlines files for Chapter 11
November 19, 2024
US low-cost carrier Spirit Airlines has applied for "voluntary prearranged" Chapter 11 bankruptcy protection in New York as it seeks to stabilise its debt position. Disclosing the application, Spirit says it has entered into a restructuring support agreement backed by bondholders and designed to help it to reduce its debt and "provide increased financial flexibility", enabling a return to financial health. Included in this agreement are backstopped commitments for a $350 million equity injection from existing bondholders. The airline will also turn $795 million of debt into equity, as part of its efforts to deleverage. Bondholders will also provide $300 million in debtor-in-possession financing, which, combined with existing liquidity, will support Spirit through the Chapter 11 process. The Miramar, Florida-based airline envisages flying as normal through the period, with all suppliers, including aircraft lessors and holders of secured aircraft indebtedness, being paid as normal. "I am pleased we have reached an agreement with a supermajority of both our loyalty and convertible bondholders on a comprehensive recapitalisation of the company, which is a strong vote of confidence in Spirit and our long-term plan," states Ted Christie, Spirit's chief executive. "This set of transactions will materially strengthen our balance sheet and position Spirit for the future while we continue executing on our strategic initiatives to transform our guest experience, providing new enhanced travel options, greater value and increased flexibility." As part of the Chapter 11 process, Spirit is filing a reorganisation plan that will incorporate the restructuring support agreement and be confirmed by the courts. Spirit expects that its shares will be cancelled with no value through the restructuring, with the airline removed from the New York Stock Exchange, although its common stock should continue to trade in the over-the-counter marketplace.


Boeing notifies employees of layoffs
November 18, 2024
Boeing has this week notified employees it plans to lay off as part of what it says is an adjustment of its "workforce levels to align with our financial reality and a more focused set of priorities". "We are committed to ensuring our employees have support during this challenging time," Boeing adds, with most employees that have received notifications set to exit the company in mid-January. According to the US Department of Labor, the Worker Adjustment and Retraining Notification Act (WARN) requires most employers with 100 or more employees to provide notification 60 calendar days in advance of "plant closings and mass layoffs". Boeing announced on 11 October that it would reduce its workforce by approximately 10%. Eligible employees will receive severance pay, career transition services, and subsidised health care benefits up to three months after exiting the company. "Reductions include attrition and concentrating backfills for open positions on business-critical priorities," Boeing says.


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