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JetBlue To Prioritize Airbus A220 Aircraft in New 'JetForward' 5-Year Strategy
JetBlue is taking proactive steps to enhance its balance sheet, including prioritizing the arrival of an additional Airbus A220-300 and deferring the Airbus A321neo (including the XLR variant), as highlighted by @AirlineFlyer on X. The growing Airbus A220 fleet will replace the Embraer E190, offering 90% more premium seating and 30% lower unit costs. The E190 will be retired by the end of 2025, streamlining JetBlue's fleet to just the A220 and A320 families.
However, JetBlue faces challenges with multiple aircraft grounded due to Pratt & Whitney engine issues, averaging 11 grounded planes at any given time, a trend expected to continue through mid-2025. To improve its bottom line, JetBlue has deferred 44 A321neo deliveries from 2025-2029 to the 2030s, saving $3 billion in capital expenditure. The airline plans to extend leases or purchase off-lease 12 aircraft, expanding to a total of 30 to maintain its current networks.
JetBlue, like many airlines, is contending with a market affected by a cost-of-living crisis and rapid inflation driven by labor, maintenance, and fuel costs, without corresponding revenue growth. The carrier has been focused on the Northeast alliance and acquiring Spirit, and is now adjusting its focus to address product gaps and improve its marketing strategy.
EU Court Dismisses Ryanair's Appeal Against €150 Million Loan to Austrian Airlines
The Court of Justice of the European Union has dismissed Ryanair's appeal against a €150 million state loan granted to Austrian Airlines during the Covid-19 pandemic. The court confirmed the loan's lawfulness and rejected Ryanair and LaudaMotion's challenge to the European Commission's 2020 approval.
The court ruled that EU member states can grant aid to single companies for exceptional events like the pandemic. It found that Austrian Airlines had a larger market share and was more severely impacted by restrictions, justifying the selective aid. Ryanair and LaudaMotion could not prove the aid created undue market barriers.
Ryanair has argued that state aid creates unfair competition and contrasted this decision with previous EU court rulings against aid to airlines like Lufthansa and Air France. The airline criticized the European Commission for not recovering what it views as unlawful aid given to several European carriers.
Rex Airlines Enters Voluntary Administration, Grounds B737 Fleet
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Regional Express Holdings and several subsidiaries, including Rex - Regional Express, have entered voluntary administration, canceling all B737-800 flights and grounding the jet fleet. Regional Saab 340A flights and Pel-Air Aviation air ambulance services continue unaffected. The decision followed a board meeting on July 30, 2024.
Ernst & Young Australia’s Samuel Freeman, Justin Walsh, and Adam Nikitins have been appointed as administrators. The companies in administration include:
Rex’s foray into jet operations, which included leasing B737-800s, led to financial difficulties. Despite plans to capture 30% of Australia’s domestic market, Rex managed only a single-digit share with nine B737s and low passenger loads.
This year, Rex is the second Australian airline to fail, following Bonza. Unlike Bonza, Rex serves numerous regional communities, making its collapse more impactful. The Australian government has pledged to ensure continued service to these areas.
Virgin Australia is offering to re-accommodate Rex passengers on overlapping routes at no extra charge and is negotiating to take over three of Rex’s B737 leases to support its schedules and potentially hire affected Rex employees. Virgin and Rex are also exploring potential codeshare arrangements.
Spirit Airlines Introduces New Premium Options for Affordable Travel
Spirit Airlines (NYSE: SAVE) is launching new, high-value travel options, redefining low-fare travel with an enhanced Guest experience. Starting Aug. 16, travelers can book new options, with the full experience available by Aug. 27, 2024.
New Travel Options:
Additional Features:
Spirit's new offerings include no change or cancellation fees, increased checked bag weight allowance, and extended voucher expiration.?