ARC NEWS
Spirit complains to DOT about JetBlue-United partnership
June 26, 2025
Spirit Airlines has asked the US Department of Transportation to extend the review period of United Airlines' and JetBlue Airways' joint venture agreement by an additional 60 days. It also wants the DOT to make the agreements available for public review and to provide a period for public comments, which Spirit says the DOT has previously done. Spirit says in its 24 June complaint that United and JetBlue's "Blue Sky" partnership, announced in May, "raises serious competition and public interest questions similar to the NEA", referring to the now-defunct Northeast Alliance between American Airlines and JetBlue that a US federal judge dissolved in a May 2023 court order. On 28 April this year American filed a lawsuit against JetBlue to recover money it claims is owed to it following the unwinding of the NEA. Spirit argues that Blue Sky partnership "creates the same anti-competitive incentives present in the NEA". It says: "JetBlue, enticed by the benefit to its customers of United's far larger global network, will become a de facto vassal of United. Despite a rote assertion that the carriers will 'continue to manage and price their networks independently,' JetBlue's network decisions, on both overlap and non-overlap routes, will certainly be affected by United's wishes and a 'combined' approach to capacity management." Spirit adds: "JetBlue will need to purchase more expensive United miles to offer the United connectivity (e.g., on United's international long-haul routes, as well as to large parts of the domestic US not served by JetBlue) to JetBlue loyalty program members. That incremental cost must necessarily be covered by higher JetBlue fares." Spirit also argues that the tie-up "promises coordination on high-value corporate accounts and, more importantly, helps perpetuate the unchanging lack of access in both New York area and Boston airports to new entrants and limited incumbents offering competitive prices to the public". It conlcudes: "In short, this anti-competitive tie-up involving a dominant legacy carrier will neutralise the competitive benefit of an existing low-fare competitor (JetBlue), will raise fares, and will tend to weaken other value airlines, such as Spirit and others, by siphoning off customers attracted by access to the United loyalty program." United referred comment to JetBlue, which tells Cirium it thinks Spirit's filing "misrepresents Blue Sky and twists the facts about how JetBlue and United plan to deliver for customers". "Blue Sky is built around the goal of offering more value and options for travellers. Through an industry standard loyalty program agreement, customers will gain more ways to earn and redeem points/miles and access loyalty benefits. Each airline will offer flights for sale on one another's websites and apps to make booking across the two airlines' complementary networks simple and easy," JetBlue says. "Blue Sky involves an industry standard interline agreement and does not include schedule coordination or revenue sharing. JetBlue and United will remain competitors as they each will continue to publish, price, and market flights independently under their own brand and flight numbers and make independent network decisions."


China Airlines to boost fleet with eight A321neos, five A350-900s
June 26, 2025
China Airlines plans to boost its fleet with the lease or purchase eight Airbus A321neos and five A350-900s. For the batch of eight A321neos, leases for five have been agreed with Air Lease on terms of between 123 and 143 months at about $240 million, according to filings to the Taiwan stock exchange. The carrier says it is still "in negotiation" with a counterparty for a second batch of three aircraft, per a 25 June filing. In a separate same-day filing, the China Airlines says its board has approved the lease and purchase of five A350-900s. The total purchase price shall not be more than $1.97 billion, while total lease price shall not exceed $1.15 billion, details the filing. The carrier adds that the purpose of the lease or purchase is to "facilitate the Company's long-term operational development and enhance flexibility and competitiveness of its global presence." The latest disclosures follow firm orders earlier this year for 10 A350-1000s, 10 Boeing 777-9s and four 777-8 Freighters. The carrier also has 18 787-9s, six 787-10s and nine A321neos on order.


Aurigny incurs losses after 'unanticipated' aircraft lease costs
June 25, 2025
Unexpected aircraft lease expenses pushed Aurigny further into the red in 2024 as it battled aircraft shortages and flight cancellations, but the UK regional carrier promises to provide a "robust and reliable" service this year. The Guernsey-based operator incurred a full-year net loss of £6 million ($8.2 million), compared with a £3.6 million net loss the previous year. It made an operating loss of £6.5 million, versus an operating profit of £1.7 million in 2023. Aurigny says that an "unanticipated" cost of leased aircraft amounting to £6.5 million was responsible for its losses, without which the carrier would have achieved a £500,000 profit. The airline was forced to wet-lease an ATR 72-500 from Spanish ACMI provider Swiftair in August 2024 after unscheduled maintenance of one of its aircraft led to a series of flight cancellations. Aurigny shed an Embraer 195 from its fleet last year and replaced it with two ATR 72-600s on long-term leases. "The entry of these aircraft brings commonality across the fleet servicing the UK routes, thereby reducing operating costs through the simplification of crew and engineering staff requirements," states Aurigny chairman Kevin George in the carrier's annual report. Aurigny's fleet is now comprised of five ATR 72-600s – three of which are owned and two leased – and two owned Dornier 228s. The airline says that the two Dornier 228s will be "phased out" this year and it has partnered instead with a "specialist Twin Otter operator" to provide a "more resilient service" on its Alderney routes. "The intention for the year ahead is to provide a robust and reliable service after acknowledged punctuality shortfalls in 2024," says George. "For this reason, the number of seats that we intend to provide in 2025 is less than 1% more than 2024. This is seen as a prudent target that, barring any unforeseen events, should be achievable without placing undue pressure on fleet and staff." Aurigny's revenue in 2024 increased to £63 million from £60 million a year earlier. Operating expenses grew to £65 million from £51 million.


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