Cranky Weekly Review Presented by OAK: Spirit Tells Frontier Thanks but No Thanks, New CFO Blows into Southwest

Frontier’s Pursuit of Spirit Losing Momentum

Frontier just can’t quit Spirit as the carrier is taking the adage of “if at first you don’t succeed, try, try again” to heart as it made a third takeover bid of Spirit this week with Spirit respectfully telling Frontier where it could stick its proposal.

This offer, just like the last one, offered $400 million in newly issued debt, a 19% stake in Froniter’s parent company, and the ability to swap the animal on the tail of up to three airplanes by 2028. It removed the requirement that Spirit complete a $350 million equity rights offering and required that the bankruptcy court-approved $35 million termination fee be waived. The idea that anyone thought they could sell Spirit on anything that included the removal of a fee just shows how Frontier misjudged its rival.

The offer was valued at about $2.16 billion in all, with Spirit claiming the deal was less beneficial to its stockholders than what it was cooking up in bankruptcy. Who will be next to make an offer to Spirit? It’s unclear what the future holds, but our money is on PIA.

Breeze President Luvs New Role at Southwest

Tom Doxey, formerly the president of Breeze Airways is blowing into Southwest as the carrier’s new CFO, replacing the departing Tammy Romo who chose to retire after a meeting with Elliott Investment Management in which a severed horse head was placed in the seat next to her in the conference room.

Prior to his time at Breeze, Doxey served in multiple leadership roles at United, eventually leaving the carrier after being unable to convince it to move its Jersey hub from Newark to Trenton. Prior to United he held financial planning and fleet management roles at both Allegiant and US Airways.

Southwest CEO Bob Jordan said that Doxey’s expertise in financial planning, fleet anagement, and operational leadership were vital to making the decision to bring him board, along with his relaxed temperament and willingness to wait in line in letter and number order in Southwest’s executive dining room in Dallas. Doxey will begin his new role on or about March 10, depending on when Southwest opens up a Wanna Get Away Fare on its Salt Lake City – Dallas/Love service for Doxey to get started.

DCA Reopens Closed Runways

Runways 4/22 and 15/33 have reopened at Washington/National Airport, two weeks after the deadly collision that led to the closure of the two runways as a safety measure.

Both runways are shorter than Runway 1/19, the primary runway for the airport, but 15/33 is an especially crucial part of DCA’s flow, and these reopening will allow the airport to increase its traffic to 28 arrivals per hour — and improvement from the 26 it had been reduced to since the crash. DCA’s maximum arrival flow is 32 flights per hour.

Restrictions on helicopter flying around the airport remain in effect as the NTSB continues its investigation. Helicopter flying is not completely suspended — exceptions for medical emergency flights, air defense, and presidential transport remain available to operate — but routine training missions and other flying will remain banned from the immediate area for the indefinite future.

Volaris Expands U.S. Flying

Volaris is adding 16 new routes to the U.S. including one new destination — although it’s not one that it’ll likely be excited to share. That’s right folks, the carrier has stunned the world by adding service to Newark — America’s Most Beloved Airport* — serving EWR to both Guadalajara and San Salvador. We’ve asked for comment from the mayors of both Guadalajara and San Salvador to find out what it is their citizens did to earn such a fate but as of press time have not received a response.

Other additions for Volaris include:

• Dallas/Fort Worth, Houston/IAH, and San Antonio to both Morelia and San Luis Potosí
• Los Angeles to Querétaro and Tepic
• Miami and Orlando to San Jose (CR)
• Ontario to León, Los Cabos, and Morelia
• Sacramento to Morelia

*actually it’s quite the opposite but it’s Valentine’s Day so we were feeling generous

Alaska Likes Dallas, Doesn’t Love it

Alaska Airlines is leaving Dallas/Love Field, ending service at the airport after May 14. Anyone booked on an Alaska flight out of Love Field after May 14 will be rebooked to Dallas/Fort Worth, given the option of a refund, or provided a vat of pancake mix from Alaska’s lounge in Seattle equal to the value of the ticket.

Virgin America began service to Dallas/Love in 2016 when it and Delta were able to break through Southwest’s stronghold at the airport. VX would lease two gate at DAL and had success at the airport right away, transporting nearly 31,000 passengers — 3.6% of the airport’s market share — in its first month.

Alaska took the service over when it merged with Virgin America in 2016. VX flew to New York/JFK, Las Vegas, Los Angeles, and San Francisco from the airport at various times, while Alaska is down to serving just its hub in Seattle. The airport also sees 14 daily flights from Delta to Atlanta, JSX service to 10 locations and 16 million passengers a year on Southwest.

• Air Canada continues to make friends.
• Air New Zealand is joining the AAPA — Association of Asia Pacific Airlines — after learning about how high the organization’s catering budget is for its annual meeting.
• Air India won’t be adding any Boeing aircraft anytime soon.
• Air Peace is expanding its interline agreement with Emirates.
• Air Transat is looking to start an interline agreement with Air Europa.
• Avianca is adding service from Bogota to Dallas/Fort Worth.
• Avianca Cargo is now the top carrier of flowers to the U.S. The business has really bloomed of late.
• BA has found common ground with Virgin Atlantic — they both are angry at the UK government.
• Bahamasair is considering adding up to 10 new A220s which, as you math nerds know, would equal one A2200.
• Croatia Airlines is finally growing its operation in Zagreb, answering the cries of millions.
• ITA will fill the crucial air corridor between Rome/FCO and Mauritius with 2x weekly flights beginning November 7.
• JetBlue is now old enough to rent a car without that pesky young driver fee.
• Kuwait Airlines is relocating to T6 at JFK next year.
• Lufthansa is expanding its Allegris product to more destinations.
• Norwegian Air Shuttle ended the year in the red — just like the front of its airplanes.
• Porter is punishing the people of Montréal for something as it begins nonstop service between YUL and Newark.
• Riyadh Air signed a sponsorship agreement with LIV Golf and that just seems about right.
• Royal Jordanian signed a maintenance agreement with Boeing for its Dreamliner fleet which seems smart on the surface, but doesn’t everyone always tell you not to take your car to the dealer for maintenance?
• Sun Country CEO Jude Bricker was complimentary of his biggest competitor in Minneapolis/St Paul.
• TUI is ending widebody flying from Brussels.