The Indian civil aviation ministry has advised domestic airlines to assess risks before flying on international routes as tensions in the Middle East are growing. The civil aviation regulatory body is working with the airlines and the ministry of external affairs to navigate the situation, civil aviation secretary Vumlunmang Vualnam has said.
Spirit Airlines Expects up to $200 Million for Pratt & Whitney Engine Problems
30.03.2024 - 13:07 / skift.com / Spirit Airlines / Ted Christie / Spirit Ceo / Meghna Maharishi
Spirit Airlines is expecting to receive anywhere from $150 million to $200 million in compensation for grounding some of its planes due to issues with Pratt & Whitney engines.
The carrier said in a regulatory filing on Friday that it entered an agreement with International Aero Engines, an affiliate of Pratt & Whitney, to receive a monthly credit throughout 2024 for the grounded planes.
In July 2023, Pratt & Whitney discovered that its geared turbofan engines manufactured between the fourth-quarter of 2015 and the third-quarter of 2021 had a contaminated powdered metal that could interfere with the functioning of the engines.
The issues primarily affected A320neos, causing carriers like Spirit and JetBlue — both of which rely on the A320neo — to ground several planes. Spirit expected to ground 25 A320neos in 2024 as a result.
Spirit said in the filing it would discuss “appropriate arrangements” with Pratt & Whitney if it has to ground planes past December 31, 2024.
Spirit chief financial officer Scott Haralson previously said during a fourth-quarter earnings call that the carrier had been working on a compensation agreement with Pratt & Whitney.
The compensation could offer Spirit a significant source of liquidity, as the carrier has been struggling to make a profit since the pandemic and has a staggering $1.1 billion in debt set to mature in 2025. To shore up its liquidity, Spirit recently sold 25 aircraft and leased them back, allowing it to pay down $465 million in debt and net $419 million in cash.
And after its merger with JetBlue collapsed, Spirit’s path is unclear. Some Wall Street analysts previously said the airline may need to file for bankruptcy or find another buyer.
Spirit CEO Ted Christie called those comments a “misguided narrative” during a call with analysts in February.
In order to restore its profitability, Spirit is now looking to add more connecting flights in places like Fort Lauderdale and Las Vegas and relying less on the ultra-competitive Florida market, according to The Points Guy.
The website maxtravelz.com is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.
Top Autors
Popular Topics
forbes.com
17.04.2024 / 13:37
United Airlines Lost $200 Million From Boeing Max 9 Grounding
United Airlines would have turned a profit in the first quarter of 2024 had it not been for a door plug blowing off an Alaska Airlines jet mid-flight in January.
skift.com
17.04.2024 / 07:59
United Airlines Takes a $200 Million Hit From Max 9 Grounding
United Airlines reported it took a $200 million hit during the first-quarter from the Max 9 grounding, according to a regulatory filing posted Tuesday.
nytimes.com
16.04.2024 / 23:49
Buttigieg Teams Up With State Attorneys General to Investigate Airline Complaints
Transportation Secretary Pete Buttigieg on Tuesday announced a new partnership with more than a dozen state attorneys general to investigate consumer complaints against airlines.
thepointsguy.com
16.04.2024 / 17:11
A new era for Hawaiian Airlines as it launches Dreamliner service: TPG was on the inaugural
It's a big moment for Hawaiian Airlines.
skift.com
10.04.2024 / 12:41
Guesty Raises $130 Million for Expansion, Acquisitions, and AI
Guesty, the property management platform for short-term rental businesses, said Wednesday that it has raised $130 million in series F funding.
travelpulse.com
09.04.2024 / 15:37
United Airlines Cancels 2 New Routes Weeks Ahead of Launch
United Airlines has reportedly indefinitely postponed the launch of two highly anticipated routes just weeks before their inaugural flights were due to take off.
travelpulse.com
09.04.2024 / 15:37
Spirit Airlines Defers Upcoming Airbus Deliveries Five Years, Furloughs 260 Pilots
Spirit Airlines and Airbus have agreed to defer all its aircraft expected to be delivered in 2025 and 2026 to 2030-2031 as the airline seeks to improve its financial position following its failed merger with JetBlue.
insider.com
09.04.2024 / 14:11
Airbus and Boeing's problems spell bad news for the cost of your summer vacation
You can expect to pay more for plane tickets this summer, as airline capacity struggles to keep up with demand.
thepointsguy.com
09.04.2024 / 13:21
FAA clears futuristic blended-wing JetZero aircraft for test flights
A California company recently cleared a hurdle to begin testing a miniature version of its next-generation aircraft.
nytimes.com
08.04.2024 / 18:31
Spirit Airlines Will Delay Plane Purchases and Furlough Pilots
Spirit Airlines said on Monday that it would delay delivery of new Airbus planes and furlough pilots to save money as it seeks to overcome several setbacks, including a blocked merger, engine problems and a lackluster recovery from the pandemic.
thepointsguy.com
06.04.2024 / 12:03
Spirit's latest network shift features 7 new routes launching this summer
It's been an eventful few months when it comes to U.S. budget carriers' route networks, shifting capacity to reduce their exposure to plummeting fares in prime leisure markets like Florida, especially in Orlando.