American Airlines Battling The Clock And Building Pipelines
A record 90 teams of aviation maintenance technicians (AMTs) from airlines, schools, military, general aviation and repair and maintenance organizations gathered in Chicago for the annual Aerospace Maintenance Council Competition earlier this month. Teams from around the world competed in 27 real-life aerospace maintenance scenarios, testing competitors’ speed and accuracy while prioritizing safety.
American Airlines sponsored six teams of AMTs and after two days of intense competition, Team Tulsa placed first in the Maintenance Repair and Overhaul / Original Equipment Manufacturer category as well as first in the Safety Wiring, E-drill Fastener Removal and Aircraft Damage Inspection events. American Airlines – Chicago won the Simulated Spacecraft Vacuum Loading, Antenna Testing and Wing Sealant events.
Focused on building a pipeline of future talent, the airline also sponsored three student teams from Aviation Institute of Maintenance – Chicago, George T. Baker Aviation Technical College in Miami and West Los Angeles College. These teams were mentored locally by American AMTs, and that training and expertise paid off. Each of the school teams brought home awards:
Aviation Institute of Maintenance – Chicago won the Antenna Gasket event.
George T. Baker Aviation Technical College placed first in the Safety Wiring and Click-Loc events.
West Los Angeles College won the Aircraft Damage Inspection and Flex Fluid Lines events.
“It’s one thing to sit in a classroom and learn theory. It’s another thing to actually see how big an engine is when you remove a fan blade. It gives you a whole new perspective.” — Raul Cancino, Aviation Institute of Maintenance – Chicago student competitor
Students competing on American-sponsored teams are guaranteed interviews for AMT roles at American once they graduate and receive their FAA airframe and powerplant licenses. American also encouraged students to complete their studies by awarding scholarships to future AMTs.
About American Airlines Group
To Care for People on Life’s Journey®. Shares of American Airlines Group Inc. trade on Nasdaq under the ticker symbol AAL and the company’s stock is included in the S&P 500. Learn more about what’s happening at American by visiting news.aa.com and connect with American @AmericanAir and at Facebook.com/AmericanAirlines.
Boeing CEO: Taking Action to Strengthen Safety and Quality
Although we report first quarter financial results today, our focus remains on the sweeping actions we are taking following the Alaska Airlines Flight 1282 accident.
This started with taking responsibility and immediately and transparently supporting the National Transportation Safety Board in their investigation and the Federal Aviation Administration on their audit and oversight actions. We supported our customers in safely returning their airplanes to service, and concurrently launched significant steps to strengthen quality and safety.
Importantly, the foundation of our work is listening to our people. Since Jan. 5, more than 70,000 of you have participated in Quality Stand Downs across more than a dozen Boeing sites. From those, we’ve received more than 30,000 ideas on how we can improve. And this year, we’ve seen more than a 500% increase in employee Speak Up submissions compared to 2023. We are taking all ideas collected and prioritizing them as we further enhance our factory disciplines and overall quality standards. Our people know better than anyone the actions we must take to improve, and we are listening and acting on their feedback.
We are leaving no stone unturned and are making significant progress. That includes training, tooling, factory equipment, work instructions, inspection procedures, compliance checks, travelled work controls, incentive structures, employee listening, culture improvement and much more. These are just some of the areas where we are driving enduring change, investing and taking comprehensive actions.
We are using this period, as difficult as it is, to deliberately slow the system, stabilize the supply chain, fortify our factory operations and position Boeing to deliver with the predictability and quality our customers demand for the long term. As these efforts begin to take hold, we’re seeing early signs of more predictable, stable and efficient cycle times in our 737 factory, and expect this will continue to slowly improve.
Near term, yes, we are in a tough moment. Lower deliveries can be difficult for our customers and for our financials. But safety and quality must and will come above all else. We are absolutely committed to doing everything we can to make certain our regulators, customers, employees, and the flying public are 100 percent confident in Boeing. While I have shared my plans to step down as CEO around the end of this year, I will be focused every day on seeing that commitment through.
There is a lot of work in front of us, but we remain fully confident in our future. While this effort will slow our recovery timing, we are starting to see these proof points that we’ll begin to stabilize and improve performance moving forward.
Demand across our portfolio remains incredibly strong. By the end of this year, we will have largely delivered our 737 and 787 inventory, effectively shutting down our two shadow factories. Our commercial business will be more stable. Our defense business will be progressing toward more historical levels of performance. And our services team will continue to deliver exceptional results for our customers. Most importantly, we will have embedded all of the important lessons we’ve learned this year.
So, despite the recent challenges, let’s not lose sight of the progress we have made; of what we are capable of achieving together; and the important role we play in our world. A Boeing airplane safely takes off or lands just about every second of every day. Our men and women in uniform rely on Boeing when it matters most, and they depend on our products to help them come home safely every day. Next month, we’ll be sending astronauts to the space station and returning them safely back to earth in our Starliner space capsule.
The work we do matters; it makes a difference. Over the last several months, I’ve had the opportunity to speak with many of our frontline team members. I continue to be impressed by the pride you take in your work; your commitment to getting things done the right way; and your willingness to raise your hands and offer ideas for how to do things better.
You are why I’m so confident in our future. Together we will ensure that Boeing is the company the world needs, and the one that we are all proud to work for every day.
Bottlenecks Begone: How GE Aerospace Devised a Way to Make Engines and Save Hundreds of Millions in Inventory
With the worst of the COVID-19 pandemic behind us, travelers are flocking to airports again, leading to surging demand for jet engines, but supply chain issues are hindering the aerospace industry’s ability to deliver for customers. GE Aerospace’s Greg Pothoff is on a mission to make sure the company can deliver to its customers. He’s part of a team that has pledged to hunt down and eliminate delays across GE Aerospace’s vast supply chain and help ensure on-time delivery to customers within the next three years. For an industry notorious for complexity, long lead times, and bespoke parts sourced from single suppliers, it’s a tall order. But if the initiative is successful, it could significantly improve cash flow by allocating the right amount of inventory at the right place.
At the heart of the team’s effort is “plan for every part,” or PFEP, a tool from the management philosophy known as lean that GE has embraced under CEO Larry Culp. Lean management often focuses on people and process, with a goal of stripping out unnecessary complexity and waste to give employees the tools to solve problems they face on a daily basis. PFEP takes that idea and applies it to materials, often the most expensive component of any manufacturing organization. “[PFEP] really brings some order and prioritization: the right tools at the right time to solve real problems preventing customer delivery,” says Pothoff, executive director of business management.
The concept seems simple: Prioritize the parts that are critical to getting an aircraft engine completed, define how many of those parts to keep on hand, and then let the plants that make those parts see inventory levels in real time so they can produce only what’s needed. In practice, of course, changing the internal processes of hundreds of manufacturing sites isn’t so simple.
Take Bromont, a site that Jean Belanger oversees as executive director, set in the picturesque countryside southeast of Montreal, Quebec. Bromont makes a slew of parts for the popular LEAP and GEnx engines. The factory floor is a calm mix of robots and people who are forging, machining, finishing, and testing metal-leading edges for turbine fan blades and vanes for compressors, among the roughly 900 active engine parts being made there. An individual component might spend 20 days on the fabrication line, says Belanger, and Bromont turns out millions of them each year, meaning that production requires a lot of planning and coordination.
GE Aerospace realized that assembling engines was frequently being delayed by the lack of a handful of critical pieces. PFEP is a tool that sets a minimum and maximum number of each of those parts to have on hand at the facilities where they’re needed. Crucially, the tool also communicates actual inventory levels at GE Aerospace customer and supplier plants and even shows them the dollar value of the over- and under-supply. “Our shops and our external suppliers can now take advantage of this visibility to make critical prioritization calls,” says Pothoff.
With the PFEP tool, Belanger and his team at Bromont can now see, for example, how many of their products are sitting in GE Aerospace’s vast parts distribution hub in Erlanger, Kentucky, and plan their production accordingly. It’s a philosophical shift for Belanger’s small but highly automated facility, previously dedicated to the simple premise that getting the most parts out of its 600 employees and 280 robots was the lone definition of success. Before PFEP, Belanger and his managers religiously tracked delinquency rates — how late their deliveries were — more than anything else. Now they’re being told how often the right parts arrive at the destinations where they’re needed, not just if any part they’ve shipped is on time.
“What I love about PFEP is that it tells you the inventory that is in Erlanger,” says Belanger. “Then it tells you your performance” on such metrics as the percent attainment of total inventory that is within the acceptable min/max range.
Another goal of PFEP is to unlock hundreds of millions of dollars in the inventory by using what’s already been produced but currently sits on a shelf. Before Bromont started using the tool this February, says Belanger, more than $10 million of inventory made there was stored at Erlanger, waiting for the day it could be used in an engine. The team had no means to validate by part number the inventory that was sitting in Erlanger, nor did they know which part needed to be shipped and when, from a customer perspective. All of those stranded parts cost the company, and by extension its customers, money. In five months that figure has been reduced to $4 million. Bromont’s production system has also been digitally integrated to inform workers which parts have reached minimum or maximum levels of inventory and where action is required.
An example of how PFEP helped solve a critical parts shortage happened recently. A specialized robot at GE Aerospace’s Lynn, Massachusetts, plant went down, leaving the company unable to produce cooling plates for the T700 engine found in Apache and Blackhawk military helicopters. That brought assembly of the engine to a halt. Meanwhile, the PFEP tool showed that another GE Aerospace plant, in Hooksett, New Hampshire, had excessive parts on a line that used a similar robot. This robot had the spare part needed in Lynn. Having this visibility allowed the Hooksett plant to shut down their production line and send the required spare part to their colleagues in Lynn so they could get the robot up and running again. Pothoff reflected on “how remarkable it was to see the fantastic teamwork displayed across facilities with a shared interest to meet customer demand — all enabled through the visibility provided by the PFEP tool.”
Pothoff says he recently stopped by the Avio Aero facility in Pomigliano d’Arco, Italy. To his surprise, the workers there had recently gone through a PFEP exercise on their own to determine how much inventory they should have on hand between internal processes (using the same logic). The results enabled the frontline workers to make decisions right at the point of impact, and they eventually eliminated 100% of their under-minimum parts. “That’s what’s exciting to me,” says Pothoff. “That the operators and frontline leaders were empowered to make daily decisions to better meet our customer demand.”
GE Aerospace has already rolled out the PFEP visibility tool throughout all its factories with a robust road map to continually enhance the digital capabilities. This digital standard will help ensure consistency in application and continue to unlock the true capability of supply chain delivery performance for end customers.
GE Aerospace Launches as Independent, Investment-Grade Public Company Following Completion of GE Vernova Spin-Off
NEW YORK – April 2, 2024 – GE Aerospace (NYSE: GE) today announced its official launch as an independent public company defining the future of flight, following the completion of the GE Vernova spin-off. GE Aerospace will trade on the New York Stock Exchange (NYSE) under the ticker “GE”. Today, April 2, 2024, at 9:30 a.m. ET, GE Aerospace and GE Vernova will ring the opening bell together at the NYSE.
GE Aerospace Chairman and CEO H. Lawrence Culp Jr., said, “With the successful launch of three independent, public companies now complete – today marks a historic final step in the multi-year transformation of GE. I am tremendously proud of our team, their resilience, and their dedication to achieving this defining moment.”
Culp continued, “Building on a century of learning and carrying forth GE’s legacy of innovation, GE Aerospace moves forward with a strong balance sheet and greater focus to invent the future of flight, lift people up, and bring them home safely. With FLIGHT DECK, our proprietary lean operating model, as our foundation, I am confident we will realize our full potential in service of our customers, employees, and shareholders.”
With an installed base of approximately 44,000 commercial engines and approximately 26,000 military and defense engines around the world, GE Aerospace launches as an established global leader in propulsion, services, and systems. The company generated approximately $32 billion in adjusted revenue* in 2023, with 70% generated by services and the strong economics of the engine aftermarket.
At the company’s Investor Day in March, GE Aerospace reaffirmed its 2024 guidance and presented a longer-term financial outlook, including expecting to achieve ~$10 billion of operating profit* in 2028. Additionally, GE Aerospace shared a capital allocation framework to invest in growth and innovation, while also returning approximately 70-75% of available funds to shareholders.
The launch of GE Aerospace represents the completion of GE’s multi-year financial and operational transformation. Over the last several years GE has taken steps to significantly strengthen the business, including more than $100 billion in debt reduction since 2018. Simultaneously, the company-wide implementation and adoption of lean and a relentless pursuit of continuous improvement in service of the customer, enabled a deep and sustainable shift in culture. This stronger foundation enabled the successful creation of three independent companies – GE HealthCare, GE Vernova, and GE Aerospace – each of which are now well-positioned to build upon GE’s history of innovation.
Holders of GE common stock were entitled to receive one share of GE Vernova common stock for every four shares of GE common stock held. For United States federal income tax purposes, the distribution has been conducted in a tax-efficient manner for GE shareholders in the United States.
Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal counsel. Evercore, Morgan Stanley, and PJT Partners were the lead financial advisors on the transaction. The company also received legal advice from DLA Piper and Gibson, Dunn & Crutcher LLP and financial advice from Citibank, The Consello Group, BNP Paribas, and UBS.
GE Aerospace will issue its first quarter 2024 earnings on April 23, 2024 and will host its earnings call at 7:30 a.m.ET, which can be accessed here.
For additional information, please visit GE Aerospace’s “Spin-off Resources” page here.
Non-GAAP Financial Measures
In this document, we sometimes use information derived from consolidated financial data but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). Certain of these data are considered “non-GAAP financial measures” under the U.S. Securities and Exchange Commission rules. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures are included in our earnings releases and the appendix of the GE Aerospace 2024 Investor Day investor presentation, as applicable.
Boeing Donates $250,000 to Support Wildfire Recovery and Relief Efforts in Texas and Oklahoma
ARLINGTON, Va. – Boeing [NYSE: BA] is committing $250,000 to assist with recovery and relief efforts in the aftermath of wildfires in the Texas panhandle and western Oklahoma.
Funding from the Boeing Charitable Trust will support the following organizations:
$100,000 to the Texas & Southwestern Cattle Raisers Association (TSCRA) Disaster Relief Fund for assistance funds for impacted ranchers in Texas and Oklahoma.
$75,000 to American Red Cross for aid when disasters strike, ensuring those impacted have the ability to seek safe refuge, feed their family members and have access to compassionate care.
$75,000 to Amarillo Area Foundation’s Panhandle Relief Fund to support ongoing recovery efforts in impacted communities.
“Boeing’s contributions are a reflection of our commitment to the places we call home,” said Ziad Ojakli, executive vice president of Government Operations at Boeing. “We’re glad we can provide support as communities come together for recovery and healing in the aftermath of the wildfires.”
“The Amarillo Area Foundation’s Panhandle Disaster Relief Fund is being used to address the immediate needs of those impacted by the devastating wildfires in our region. We are currently focused on food, water, shelter, and clothing,” said Clay Stribling, President/CEO. “We will also be working closely with regional providers to address long term needs like grief and trauma counseling, livestock and agriculture losses, first responder organizations and their readiness, and other needs that arise as we more closely identify the damage done to our communities.”
“The loss from wildfire damage is insurmountable for many cattle raisers without the support and generosity from those like Boeing,” said Arthur Uhl, Texas & Southwestern Cattle Raisers Association President. “We are grateful for Boeing’s recognition of the important rural communities in the Southwest and the ranches and people that steward our open space and livestock. We look forward to placing their donation to the TSCRA Disaster Relief Fund in the hands of cattle raisers impacted by the wildfires in Texas and Oklahoma.”
In addition to corporate charitable investments, Boeing employees give to their local communities by participating in volunteer and charitable gift match programs. Consistent with Boeing employee gift match programs, the company will match qualifying employee contributions made in support of wildfire relief efforts.
Disaster recovery and relief efforts in Texas and Oklahoma align with Boeing’s ongoing commitment to the communities where the company has a presence. Boeing employs approximately 11,000 people and has provided a combined $20.6 million in charitable contributions over the last five years in these two states. In 2023, Boeing donated $5 million to humanitarian relief and recovery efforts globally.
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As a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing’s diverse team is committed to innovating for the future, leading with sustainability, and cultivating a culture based on the company’s core values of safety, quality and integrity. Join our team and find your purpose at boeing.com/careers.
United Expands World’s Largest Flight Training Center with Huge, New Building and Room for 12 New Flight Simulators
DENVER — United today opened a new, 150,000-square-foot building at its Flight Training Center in Denver. Already the largest facility of its kind in the world, the additional building gives the airline the capability to add 12 more advanced full-motion flight simulators to the facility, six of which have already been delivered.
So far in 2024, the airline has hired more than 300 pilots after hiring more than 2,300 pilots last year. The new building at the campus adds even more training capacity for United’s 16,000 pilots.
United’s Flight Training Center now has eight total buildings, more than 700,000 square feet of training space, and 46 state-of-the-art full-motion flight simulators.
These investments in people, infrastructure and technology continue to fuel the airline’s United Next plan.
United CEO Scott Kirby was joined by leaders from the Flight Training Center and Denver Mayor Mike Johnston to celebrate the opening and show off the facility.
“We’re growing faster than any airline in the industry and our investments in our pilots and their training are critical to support the unprecedented number of new aircraft United will add to our fleet in the decades ahead,” said Kirby. “United pilots are the best aviators in the world and the way we recruit, hire and train directly supports that high standard of excellence.”
New Capabilities
Located in the Central Park neighborhood of Denver, the facility spans 23-acres and is the sole training facility for the airline’s nearly 16,000 active pilots and all newly hired pilots. All United pilots complete intensive simulator training with pilot instructors and evaluators during the initial qualification process and every nine months thereafter to maintain their certifications at United’s Flight Training Center in Denver.
Currently, United’s Flight Training Center has 46 full-motion flight simulators, including six in the new building, and 21 fixed training devices.
In addition to the six already in the new building, it has space to add six more full-motion flight simulators.
The addition of the new building allows for a total of 52 full-motion flight simulators and 34 fixed training devices at the Flight Training Center.
The new building gives the Flight Training Center the ability to conduct more than 32,000 training events annually and train up to 860 pilots per day.
The facility is in operation 24 hours a day for 362 days a year.
Flight Training Center’s Local Impact
United invested more than $145 million in the new building and it’s expected to lead to more than 370 new jobs. In total, more than 1,600 of United’s 10,000+ Denver-based employees work at United’s Flight Training Center, representing 24 different departments in roles that include flight instructing, flight evaluating, scheduling, pilot hiring, human resources and flight standards. In 2023, more than $44 million was spent on hotel room nights in Denver for pilots visiting the training facility, with an expectation to spend more than $65 million in 2024.
United’s Flight Training Center was originally constructed between 1966-68 as part of the Stapleton Airport complex and has served as United’s main pilot training facility since then. Since 2016, United has invested $370 million in the Flight Training Center overall.
United in Denver
United continues to invest in Denver. In the summer of 2023, United announced the purchase of two parcels of undeveloped land near Denver International Airport (DEN), part of which will be used to further expand its Flight Training Center as the current Flight Training Center site does not have capacity for additional growth. United is aiming to have flight training capabilities at the Flight Training Center expansion by 2028.
As home to its fastest-growing hub, the airline has funneled nearly $1 billion in the past few years alone to further improve the customer experience at DEN. This includes new gates, state-of-the-art United clubs, including the largest in the United network to-date, and a new check-in lobby. United hired more than 2,500 people in Denver last year and plans to hire more than 1,000 people in 2024.
United operates the most flights and carries the most passengers in the state compared to any other carrier. This summer, United will offer more than 500 daily departures from DEN, including 40 new summer flights. The airline provides service to more than 175 destinations, including 10 countries, from the Mile High City.
Careers Take Flight
United is the career destination of choice for pilots, offering the largest widebody fleet in North America, and the most comprehensive global network and hubs across the U.S. In 2023, United pilots, represented by the Air Line Pilots Association, International, ratified a new four-year contract.
United offers a broad range of paths to the flight deck to ensure that the best pilots can find their opportunity at United:
First Officer hiring – For experienced pilots who meet United’s hiring requirements and are ready to fly for the airline now.
Aviate® Program – United’s pilot career development program offering aspiring and established pilots the most direct path to a United flight deck.
United Aviate Academy – United’s wholly owned flight school designed for those with little to no flying experience.
United Military Pilot Program – Launched in September 2023, an industry-leading program that gives full-time, active-duty U.S. military pilots access to conditional job offers as a First Officer.
About United
At United, Good Leads The Way. With U.S. hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers, and is now the largest airline in the world as measured by available seat miles. For more about how to join the United team, please visit www.united.com/careers and more information about the company is at www.united.com. United Airlines Holdings, Inc., the parent company of United Airlines, Inc., is traded on the Nasdaq under the symbol “UAL”.
SOURCE United Airlines
United Expands in Houston with $2.6B Terminal Project, State-of-the-Art Baggage System, New Club and Thousands of New Jobs
HOUSTON — United today announced growth plans in Houston that include a $2.6 billion renovation and expansion of Terminal B at George Bush Intercontinental Airport (IAH), a new United ClubSM location and Early Bag Storage facility (EBS) as well as a new direct flight to Georgetown, Guyana*.
These investments are part of the airline’s United Next growth plan and include the expansion of 40 gates at IAH to accommodate larger aircraft, resulting in a 40% increase in the overall number of people who can fly on peak travel dates in 2026 compared to 2023.
United is the largest airline in Houston, with more than 14,000 employees and 400 daily departures – the airline hired more than 2,100 people locally in 2023 and expects to add another 1,500 in 2024. This expansion is also expected to create an additional 4,000 construction jobs. According to a recent study by Compass Lexecon, United’s direct employment in Houston contributes to more than $1.2 billion in economic activity annually. Including the Terminal B project, United has invested more than $3.5 billion in its Houston facilities since 2015.
United CEO Scott Kirby will be joined by Houston Mayor Sylvester Turner and other officials to celebrate the expansion and show off the airline’s new Airbus A321neo, which takes its inaugural flight from Houston today and is one of 800 new planes set to join United’s fleet between 2023 and 2032.
“United Next is about new investments that improve the customer experience and building careers for the next generation of aviation professionals – and all those things and more are coming to life here in Houston,” said Kirby.
Terminal B Expansion
United’s Terminal B Transformation Program, pending final approval from Houston’s city council, will play an important part in the estimated 54 million future passengers that will annually travel throughout the Houston hub and aims to improve the travel experience from arrival to departure.
Project highlights include:
A three-level, 765,000 sq. ft. Terminal B North Concourse with 22 mainline, narrow-body gates
Converting 30 existing small regional jet gates to 18 gates to accommodate larger, two-class regional jets in the Terminal B South Concourse
Boarding via jet bridge for all flights
Two major concessions hubs with more than 115,000 sq. ft. of food and retail space
A new, state-of-the-art baggage handling system equipped with advanced tracking technology
The largest United Club in our system
Expanded curbside and roadway capacity with a ground-level check-in area, including the addition of a traffic bypass between Terminals B and A to allow Terminal B customers to exit the airport without having to drive past Terminal A as they do today
A new sensory room for passengers with disabilities
“Houston is a premier, world-class destination deserving of a state-of-the-art facility to welcome individuals traveling to our city,” said Mayor Turner. “The expansion of Terminal B is physical proof of United’s ongoing commitment to the economic vitality of the City of Houston. We are grateful for United, one of the city’s largest employers, for creating nearly 4,000 new jobs for our community and enhancing the growing demand for domestic and international travel globally.”
New United Club
A new United Club, the largest in the system, is being planned for Terminal B in Houston, which will join the eight new United Club locations that have opened in the last two years – the largest ever overhaul of the airline’s lounge spaces.
United’s new clubs boast 50% more seating space on average than the clubs they replace, higher-quality food and beverage options with local flair, and refined designs that reflect the local market and a modern take on the United Club experience. Last year, United also launched United Club FlySM – a first-of-its-kind grab-and-go club concept in Denver which has been very well received by travelers; this year alone more than 100,000 travelers have visited United Club Fly.
New Direct Service to Georgetown, Guyana
United offers more flights from Houston to more destinations than any other airline and this winter will increase capacity by nearly 10%, flying to more than double the number of cities from Houston than all other airlines combined.
On April 1, United will be the first airline to offer non-stop service between Houston and Georgetown, Guyana*, with four times weekly service on a Boeing 737-MAX 8 aircraft. This route joins nonstop flights to more than 160 destinations from Houston, including more than 85 destinations no other carriers serve non-stop from the city – including places like Brazil, Australia, Argentina, Chile, Colombia, Panama, Peru and more.
Over the past decade, United has added more than 20 new destinations out of Houston, including to Sydney, Australia; Santiago, Chile; Punta Cana, Dominican Republic; Munich, Germany and more.
The airline will also debut its largest-ever schedule between Houston and Florida this March, with a 25% increase in flying compared to 2023. The airline is adding more than 200 additional flights in March to top destinations including Miami, Fort Lauderdale, Palm Beach, Fort Myers, Tampa, Orlando and more.
New, Cutting-Edge Baggage System
United today also previewed a new Early Bag Storage facility set to become fully operational in early 2024. With a capacity of more than 3,300 trays to store baggage for passengers arriving early before departure, on long layovers, or during irregular operations when flights are delayed, the system will prioritize the release of baggage according to flight time allowing for more efficient and dependable baggage delivery. The new system has a remarkable 40 bags per-minute throughput enabling United’s overall baggage system to handle an impressive 80,000 bags per day. United is the only U.S. airline with a dedicated EBS facility, making it the most advanced in North America.
A321neo Joins the Fleet
United’s new Airbus A321neo takes its inaugural flight from Houston on November 30. This is the first new Airbus aircraft to enter United’s fleet since 2002 and features United’s most advanced cabin interior yet – including Panasonic’s new NEXT inflight entertainment system, which offers an up to 13 inch, 4K screen and a customizable passenger experience including curated content options, a more detailed flight timeline, 3D map with destination guides and onboard food and beverage menus. The new aircraft also offers:
United’s new domestic first-class seat, with wireless charging and more privacy
Larger overhead bins with space for every passenger’s roll aboard bag
High-speed Wi-Fi with streaming capabilities
Bluetooth connectivity
LED lighting designed to create a modern, calming atmosphere
The A321neo is just the latest addition to United’s fleet as progress continues on the airline’s ambitious United Next growth strategy; United expects to take delivery of about 800 new narrowbody and widebody aircraft between 2023 and the end of 2032, while retrofitting existing narrowbody aircraft with United’s Signature Interior.
*flights subject to government approval.
About United
At United, Good Leads The Way. With U.S. hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers, and is now the largest airline in the world as measured by available seat miles. For more about how to join the United team, please visit www.united.com/careers and more information about the company is at www.united.com. United Airlines Holdings, Inc., the parent company of United Airlines, Inc., is traded on the Nasdaq under the symbol “UAL”.
Boeing Launches Interactive STEM Exhibit for Texas Students
SAN ANTONIO — Boeing [NYSE: BA] has launched a new interactive experience highlighting the excitement and wonder of science, technology, engineering and math (STEM) disciplines. The Boeing Aerospace Adventure at the San Antonio Museum of Science and Technology (SAMSAT) offers students of all ages a place where they can learn more about STEM and careers in aerospace.
The 2,400-square-foot exhibit invites participants to design, build, modernize and take flight with hands-on activities and games that showcase the limitless possibilities of aerospace. Learners of all ages are invited to “Become the next Boeing Aerospace Adventurer” as they explore Boeing aircraft such as the C-17 Globemaster, Starliner space capsule and the Boeing ecoDemonstrator.
“This exhibit showcases the exciting world of aerospace while also emphasizing the critical need for a future talented and skilled workforce,” said Kim Smith, vice president of Global Operations, Quality and Program Management for Boeing Global Services. “By investing in students and collaborating with the museum and educators, we are building a strong talent pipeline that will shape the future of aerospace.”
The exhibit is a gateway that opens young people’s eyes to a world of opportunities, said Jim Perschbach, president and CEO, Port San Antonio.
“The resources and time spent creating this experience, along with the ongoing collaboration between educators and teammates including Boeing and the museum, are true investments in people,” Perschbach said. “This is also an opportunity to raise San Antonio’s tech innovation profile even higher.”
The San Antonio Museum of Science and Technology (SAMSAT) expects to engage an estimated 150,000 students annually through field trips, weekend activities and summer camps. Other aviation and space technology experiences at the Port campus, such as exhibits on autonomous vehicle technologies, lunar settlement systems, cybersecurity, and simulated security operations centers complement the Boeing display.
Boeing, through donations to the Port-affiliated Kelly Heritage Foundation, has funded a range of grants this year to support aerospace education and workforce development in south Texas. These grants include space, computer and drone/aerospace education, offering unique opportunities for students to explore and engage with the world of aerospace. The Kelly Heritage Foundation receives net proceeds from the Boeing Center at Tech Port to fund additional educational and workforce development programs in aerospace and advanced technologies.
Nearly 7,000 Boeing teammates work to protect, connect and explore our world and beyond in Texas. With key locations in Plano, Dallas and Irving, the most sizeable Boeing footprint is in San Antonio, where Boeing is the largest aerospace employer in the area. This historic city is home to more than 3,000 teammates, nearly half of whom are veterans of the armed forces. In addition to providing aircraft maintenance and modification for some of our most iconic products, including the C-17, F-15 and B-52, Boeing also provides service to the U.S. Executive Fleet.
Admission to the Boeing Aerospace Adventure and SAMSAT is free of charge. Regular hours are 10 a.m. to 5 p.m. from Monday to Saturday and noon to 5 p.m. on Sundays. The museum will be closed on Christmas Day (Dec. 25) and New Year’s Day (Jan. 1).
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About Boeing:
As a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing’s diverse team is committed to innovating for the future, leading with sustainability, and cultivating a culture based on the company’s core values of safety, quality and integrity. Join our team and find your purpose at boeing.com/careers.
About Port San Antonio:
The Port is a vast 1,900-acre technology innovation campus. It is home to a large array of employers—including globally renowned industry names and a growing number of locally headquartered startups—focused in driving forward new technologies in aerospace, cybersecurity, defense, space exploration, robotics and other advanced fields. Organizations at the Port directly employ 18,000 people from across the community, yielding a regional economic impact of over $5.6 billion annually. The Port is also a member of the Association of University Research Parks (AURP).
In the heart of the Port’s campus is the Boeing Center at Tech Port—an expansive state-of-the-art, multi-use facility. The Boeing Center at Tech Port is home to the San Antonio Museum of Science and Technology’s (SAMSAT) as well as an innovation hub, food court, concert arena and e-gaming facility.
The Port also houses the Kelly Heritage Foundation, a 501(c)(3) nonprofit that honors Kelly Air Force Base’s legacy and the future of the campus that encompasses much of the former military facility—today known as Tech Port—by raising and distributing funds to support life-changing educational and career opportunities.
Boeing Expands Strategic Investments in Brazil, including New Engineering and Technology Center
SÃO JOSÉ DOS CAMPOS, Brazil, Oct. 10, 2023 – Boeing [NYSE:BA] announced today the opening of its Engineering and Technology Center in Brazil, one of 15 Boeing engineering sites around the world that develop advanced technology to drive aerospace innovation. Based in São José dos Campos (SP) where the company began operations in 2014, the engineering center is an expansion of Boeing’s strategic investments in Brazil, where it employs about 500 engineers supporting current and future programs.
“Boeing’s longstanding partnership with Brazil dates back more than 90 years, and during that time, we have collaborated with the Brazilian aerospace industry and community to tap into the incredible technical abilities and problem-solving skills of Brazilian engineers,” said Lynne Hopper, vice president of Boeing Engineering, Strategy and Operations. “Their expertise strengthens our commitment to engineering excellence and positions us to tackle the next generation of challenges in our industry.”
At an event with employees and key stakeholders, Boeing shared several new strategic investments in the country. Among them, Boeing signed a Memorandum of Understanding (MOU) with the state of São Paulo focused on aerospace technological development including:
Support for education focused on science, technology, engineering, and mathematics (STEM)
Promoting a joint agenda of industrialization and innovation
Enhancing and strengthening the talent pipeline throughout Brazil’s aerospace ecosystem, with an emphasis on increasing diversity
“São Paulo has all the conditions to strengthen aerospace technological development, an important sector that drives the economy of the state. With this MOU, we aim to generate more jobs and income for our state, which is one of the main purposes of the partnership with the private sector, a directive of Governor Tarcísio de Freitas,” says Jorge Lima, Secretary of Economic Development of the State of São Paulo.
With the State University of Campinas (Unicamp), Boeing announced funding to extend their sustainability partnership to develop the third phase of the SAFMaps database to understand the feasibility of the most promising inputs for SAF production in specific areas in Brazil.
“Supported by Boeing, the development of SAFMaps as an innovative web platform lead by Unicamp is focused on helping accelerate sustainable aviation fuels (SAF) production in Brazil. The project, led by the university, currently includes 13 Brazilian states with the greatest potential for biomass production. It also integrates essential information about potential raw materials, aligning with international regulations aimed at reducing greenhouse-gas emissions with the goal of achieving even more sustainable aviation,” said Arnaldo Walter, the Mechanical Engineering professor who leads the project at Unicamp.
Boeing also announced the company’s first internship program in Brazil for students in their final year of engineering studies. Interns will apply knowledge through projects in a global and multicultural environment with mentoring from experienced professionals. The initiative is aligned with the company’s global strategy to contribute to engineering excellence in countries where it operates.
“We want to offer the best internship program in Brazil for students who want to build a solid and prominent career in the aerospace industry. Brazil has a rich aviation history, with universities that are reference points in the engineering sector,” said Humberto Pereira, director of the Boeing Engineering and Technology Center.
For years Boeing has actively collaborated to strengthen Brazil’s aerospace ecosystem in various areas including:
Secured more than 30 invention disclosures and patent applications since its establishment in the country in 2012
Investing more than $5 million dollars in partnerships with institutions focused on STEM education, impacting five million students and training thousands of teachers
In the area of sustainability, working for more than a decade in collaboration with universities, public institutions and non-governmental organizations to enable decarbonization of the aerospace sector
Focusing especially on SAF and recognizing the pioneering role and expertise of the country in biofuels
Investing $2 million dollars in initiatives that maximize social, economic, and environmental benefits for communities involved in development of raw materials for SAF
Working alongside National Civil Aviation Agency (ANAC) and Department of Airspace Control (DECEA) on operational safety projects
“Our investments in Brazil are extensive and reflect the fact that Boeing considers the country a strategic partner in solving some of the biggest challenges in the global aerospace industry,” said Landon Loomis, Boeing president for Latin America and the Caribbean and vice president of Global Policy. “By expanding our collaboration in Brazil, the country also can play a larger role in meeting global demand for commercial airplanes valued at $8 trillion over the next 20 years.”
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As a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing’s diverse team is committed to innovating for the future, leading with sustainability, and cultivating a culture based on the company’s core values of safety, quality and integrity. Join our team and find your purpose at https://jobs.boeing.com/boeing-in-brazil.
Tentative Agreement Reached for Southwest Airlines Material Specialist
DALLAS – Southwest Airlines Co. (NYSE: LUV) and the International Brotherhood of Teamsters (IBT) reached a Tentative Agreement for the airline’s Material Specialists.
“We are pleased to reach a Tentative Agreement with the IBT for our Material Specialists who support our Technical Operations organization by having the right tools and parts ready to maintain our aircraft,” said Adam Carlisle, Vice President Labor Relations at Southwest Airlines®. “I appreciate both Teams working together to reach an agreement that rewards our Employees far before the amendable date for this contract.”
This agreement covers Southwest’s more than 480 Material Specialists. The IBT will communicate directly with its members about the agreement and the voting process.
ABOUT SOUTHWEST AIRLINES CO.
Southwest Airlines Co. operates one of the world’s most admired and awarded airlines, offering its one-of-a-kind value and Hospitality at 121 airports across 11 countries. Southwest took flight in 1971 to democratize the sky through friendly, reliable, and low-cost air travel and now carries more air travelers flying nonstop within the United States than any other airline1. Based in Dallas and famous for an Employee-first corporate Culture, Southwest maintains an unprecedented record of no involuntary furloughs or layoffs in its history. By empowering its more than 71,0002 People to deliver unparalleled Hospitality, the maverick airline cherishes a passionate loyalty among more than 126 million Customers carried in 2022. That formula for success brought industry-leading prosperity and 47 consecutive years3 of profitability for Southwest Shareholders (NYSE: LUV). Southwest leverages a unique legacy and mission to serve communities around the world including harnessing the power of its People and Purpose to put communities at the Heart of its success. Learn more by visiting Southwest.com/citizenship. As the airline with Heart, Southwest has set a goal to work toward achieving net zero carbon emissions by 2050. Southwest has also set near-term targets and a four-pillar strategy to achieve its environmental goals. Learn more by visiting Southwest.com/planet.
Boeing, Partners Announce Next Student-Designed Experiment Bound for International Space Station
SEATTLE — Isabel Jiang, 17, is this year’s winner of Genes in Space, a biology-based research competition co-sponsored by Boeing [NYSE: BA]. The announcement was made at the International Space Station Research and Development Conference in Seattle. Jiang’s experiment will be performed by astronauts aboard the ISS U.S. National Laboratory next year.
The Genes in Space contest invites students in grades 7 through 12 to design biology experiments that address real-world challenges in space exploration. The national competition garnered submissions from 194 schools in 31 states. Authors of the top five proposals presented their ideas to a panel of scientists, educators, and technologists at the conference.
“Our goal is to inspire young minds with the excitement of biological and physical sciences, and every year we are also inspired by the innovative ideas these students submit,” said Scott Copeland, director, Boeing ISS Research Integration. “The winners are already meaningfully contributing to scientific research on the space station and helping us solve challenges that lie ahead in the future of human spaceflight. I’m so proud to be a part of that.”
Jiang’s experiment was selected from a competitive field of 820 submissions from 1,177 students. Her experiment proposes to understand the mechanisms that make latent viruses reactivate in space.
“I’m excited to see what [my experiment] does in space and use that info to inform future medical decisions,” said Jiang.
She also said she is looking forward to seeing the medical applications of her research here on Earth and to explore a topic that has not yet been studied in space.
Jiang’s research will be the 11th Genes in Space student experiment performed by astronauts aboard the International Space Station, in addition to two program technology demonstration missions. Genes in Space was founded in 2015 as a collaboration between Boeing and miniPCR bio. Since then, the ISS U.S. National Laboratory and New England Biolabs have sponsored the program.
The other finalist proposals that stood out for their potential to positively impact the future of space travel and in their innovative use of the Genes in Space toolkit, include:
Charlene Chen, 16, Smithtown High School East, St. James, New York, whose project centered on the development of a dual fluorescent-colorimetric DNA aptasensor to rapidly detect oxidative DNA damage in astronaut urine samples.
Ananth Jagannath, 16, Adrian Wilcox High School, Santa Clara, California, whose research sought to measure the effect of microgravity on protein folding.
Christina Rasa,18, and Kenny Koch,18, The Tome School in North East, Maryland, whose topic was to use nano-thylakoid units to reverse the effects of osteoarthritis in mice living on the ISS.
Manasi Vegesna, 17, Hamilton High School in Chandler, Arizona, whose project aimed to assess how space conditions affect immune system central tolerance.
As a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing’s diverse team is committed to innovating for the future, leading with sustainability, and cultivating a culture based on the company’s core values of safety, quality and integrity. Join our team and find your purpose at boeing.com/careers.
Lockheed Martin Names Chris Wronsky As Senior Vice President And Chief Human Resources Officer
BETHESDA, Md. — Lockheed Martin’s (NYSE: LMT) today announced Christopher J. Wronsky as senior vice president and chief human resources officer effective Sept. 1. He will also serve as a corporate officer and report directly to Lockheed Martin Chairman, President and CEO Jim Taiclet. Wronsky succeeds Greg A. Karol, who will retire after a transition period.
Wronsky has more than 35 years of with Lockheed Martin and has served in positions of increasing responsibility in the business areas and internationally. He is the current vice president of Lockheed Martin’s Rotary and Mission Systems Human Resources organization, where he oversees strategy for 35,000 employees. His accomplishments at RMS include the successful integration of several organizations including the Sikorsky Aircraft acquisition. Before that, he served as the initial vice president of International HR, based in London.
“Chris has a proven track record of strong leadership and effective human resources strategy,” Lockheed Martin Chairman, President and CEO Jim Taiclet said. “He understands the imperative of recruiting, developing and retaining the top talent needed to deliver the innovative 21st Century Security solutions that our customers need to stay ahead of ready.”
Wronsky will be responsible for global human resources strategy and for cultivating talent for Lockheed Martin’s diverse team of more than 116,000 people around the world. His portfolio will include benefits, compensation, performance management, talent acquisition, diversity and inclusion, labor relations, talent and organizational capability, and workforce solutions and intelligence. He will also oversee the Global Security organization.
“Our global team at Lockheed Martin is the engine that powers the innovative solutions we deliver to our customers,” Wronsky said. “I look forward to serving our talented workforce in this new role and continuing to build a culture rooted in values, collaboration and inclusion.”
Karol will retire with nearly four decades of service to Lockheed Martin.
“I appreciate Greg’s leadership in guiding our team through the pandemic, including a move to remote and flexible work for many of our roles. He made a lasting contribution to our employees’ productivity and well-being and helped strengthen our position as the employer of choice in aerospace and defense,” Taiclet said.
For more information, visit our website: www.lockheedmartin.com.
About Lockheed Martin
Headquartered in Bethesda, Maryland, Lockheed Martin Corporation is a global security and aerospace company that employs approximately 116,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.
United’s New App Feature Helps Customers Re-book and Receive Meal and Hotel Vouchers Automatically
CHICAGO — United today announced a new mobile app feature that aims to save customers time and reduce stress if their travel plans get disrupted. Now, instead of waiting in line to talk to an agent or search for new options, the airline’s new self-service tool automatically presents travelers personalized re-booking options, bag tracking information and meal and hotel vouchers when eligible if their flight is delayed or canceled.
While United had the lowest mainline flight and seat cancellation rates of any airline in the country during the first three months of the year, the carrier still has the most flights impacted by weather given the location of its major domestic hubs.
According to the airline, nearly 50% of its customers already turn to the app or united.com to self-serve during disruptions, so United began beta testing the new feature at the end of last year. United found that customers responded well to having alternate travel options automatically served to them in the app and that airport employees appreciated reducing the number of people physically waiting in line.
“Our goal is to get our customers to their destination on time, but we know things don’t always go as planned and that’s when a tool like this can make a real difference,” said Linda Jojo, Chief Customer Officer for United. “Our new mobile app feature offers more transparency, saves time and reduces stress for our customers, and it shortens lines at customer service desks so our employees can better assist passengers with complex issues or questions. Plus, it’s another example of United’s continued investment in new technology and tools.”
When a flight is delayed by more than 60 minutes or canceled, customers will automatically see options for delays and cancellations on the home screen of the United mobile app. Here’s how it works:
Get notified: Click the link in the automatic text notification or enter flight details in the mobile app or united.com to open the tool. For customers who have their reservation already loaded in the app, they’ll see a prompt right on the home screen.
Check flight and re-booking status: Confirm the status of your flight and see if you’ve been re-booked. Customers also have the option to look at other flight options and book based on their preference.
Track your bags: Follow the status of your checked luggage to see when it is checked-in, loaded on your flight and received at your final destination.
View eligible vouchers: Receive hotel, meal and/or rideshare vouchers if eligible.
Connect to a United customer service agent virtually: Call, text or video chat with one of hundreds of United agents who can offer the same assistance as the agents at the airport.
For those without the United mobile app, the self-service tool is accessible on a mobile device or computer at united.com, and customers still have the option to connect in-person with a customer service agent.
This new feature is the latest way United uses technology to give travelers more transparency and improve the customer experience. For years, the airline has led the industry on implementing new technologies and policies across its operation to increase customer transparency, including:
Free family seating: United is the first and only airline to offer a dynamic seat map feature that makes it easier to seat children under 12-years-old next to an adult in their party for free – even travelers in Basic Economy.
Automatic customer communications: United sends personalized, real-time updates via text notifications with timely information about boarding, gate location, travel disruptions, bag tracking and more, providing awareness into flight plans or status.
Flexible refunds and travel credits: United offers a 24-hour flexible booking policy, and in September 2021, United launched more self-service options to easily find, apply and combine credits at check-out.
No change fees: In August 2020, United got rid of change fees, offering more flexibility for travel plans, and started complimentary standby travel, becoming the only U.S. airline that lets all customers in all classes of service fly same-day standby for free.
For more information, download the United mobile app here, and view media assets here.
About United
At United, Good Leads The WaySM. With U.S. hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers, and is now the largest airline in the world as measured by available seat miles. For more about how to join the United team, please visit www.united.com/careers and more information about the company is at www.united.com. United Airlines Holdings, Inc., the parent company of United Airlines, Inc., is traded on the Nasdaq under the symbol “UAL”.
United’s New App Feature Helps Customers Re-book and Receive Meal and Hotel Vouchers Automatically
SOURCE United Airlines
Boeing and Indonesia Partner to Explore Air Traffic Management Improvements
JAKARTA, Indonesia, June 12, 2023—Boeing [NYSE: BA] has signed an agreement with AirNav Indonesia to explore initiatives to further enhance the safety and efficiency of Indonesia’s national air traffic management system.
Improving airport and flight operations can help increase the safety and sustainability of Indonesia’s aviation system through more efficient movement of aircraft and reduced fuel use.
The Memorandum of Understanding (MOU) brings together Boeing’s engineering expertise with the Indonesian government’s key initiatives in airspace management, training and air traffic management strategic planning. Boeing and AirNav will work closely with the Directorate General of Civil Aviation of Indonesia, local airlines, airport operators and other aviation stakeholders in the country.
“AirNav Indonesia is focused on making sure that our airspace system adopts and maintains the highest levels of safety while fostering the growth of Indonesia’s civil aviation industry,” said Mdm. Polana B. Pramesti, President Director of AirNav Indonesia. “Airspace capacity and air traffic management is a shared interest between Boeing and AirNav and a natural space where we need to cooperate. We look forward to this collaboration with Boeing.”
“With its emerging market economy, Indonesia is home to one of the largest aviation markets in Asia,” said Mike Sinnett, senior vice president and general manager of Product Development for Boeing Commercial Airplanes. “We’re committed to supporting Indonesia’s civil aviation industry and excited to work with AirNav to explore lasting solutions that safely and sustainably enhance Indonesia’s air traffic management system.”
Boeing and Indonesia have worked in partnership for over 74 years to support the development of aerospace and defense capabilities in the country through training, supply chain, and collaborations. Today, Boeing’s presence in Indonesia covers commercial aviation, defense, space, supply chain, and academia partnerships.
As a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing’s diverse team is committed to innovating for the future, leading with sustainability, and cultivating a culture based on the company’s core values of safety, quality and integrity. Learn more at www.boeing.com.
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Contact
Swetha Mahesh
Boeing Southeast Asia Communications
+65 9824 4836
swetha.mahesh@boeing.com
Boeing Media Relations
media@boeing.com
Sikorsky X2 Technology Propels Army Readiness in the Indo-Pacific
The U.S. Indo-Pacific Command (USINDOPACOM) covers more of the globe than any Department of Defense geographic combatant commands, making it vital for the military to operate at range. The region has rapidly become the Pentagon’s top priority to counter threats from China, making the Army’s Future Attack Reconnaissance Aircraft (FARA) increasingly important for readiness.
Sikorsky, a Lockheed Martin company, is offering the RAIDER X®, based on its transformational X2™ technology and coaxial rotorcraft design, to deliver the FARA mission. RAIDER X is custom-built for Indo-Pacific missions. It flies farther and faster than conventional aircraft, maneuvers with unmatched agility at low altitudes and excels in any environment, including extremely hot conditions.
The safest sanctuary for helicopters is low. And if you can fly low and fast, it’s especially difficult for radar to detect you. That’s what RAIDER X brings to battle.
Christiaan Corry
Sikorsky’s lead test pilot for the S-97 RAIDER®
“In battle, you want to live outside the threat ring. Getting in close and mitigating threats requires a combination of speed and the ability to capitalize on the environment,” said Christiaan Corry, Sikorsky’s lead test pilot for the S-97 RAIDER®, Sikorsky’s FARA-representative aircraft flying today in West Palm Beach, Florida. “The safest sanctuary for helicopters is low. And if you can fly low and fast, it’s especially difficult for radar to detect you. That’s what RAIDER X brings to battle.”
Yet the FARA mission relies on more than aircraft capabilities alone. In the future battlespace, FARA will act as a networked sensor, a “quarterback” for managing the effects and communications across platforms in the lower-tier air domain at up to 1,000 feet above the ground.
RAIDER X’s all-digital, Modular Open Systems Approach (MOSA) is designed not only to connect with sensors and shooters across all domains but also to rapidly evolve and grow with the technology landscape.
X2 technology will give pilots a decisive edge in USINDOPACOM environments in three fundamental ways.
Delivering Increased Speed and Maneuverability
Sikorsky has designed, built and flown four prototype aircraft using X2 technology, including the S-97 RAIDER technology demonstrator, which first flew in 2015. Flying at 207 knots straight and level, the S-97 RAIDER has already demonstrated speeds faster than any current operational helicopter. Sikorsky’s X2 TECHNOLOGY™ Demonstrator aircraft, which first flew in 2008, exceeded flight speeds of 250 knots.
The low and high-speed maneuverability of X2 technology, at 70-plus degree angles-of-bank, is critical for operating in contested environments. Fly-by-wire controls reduce pilots’ workload so they can focus on the mission. And the ability to fly at high altitudes and hover in hot conditions, common in the INDOPACOM region, is critical to the Army’s FARA mission.
X2 technology provides a leap ahead in rotorcraft capability and design. All this capability and continued testing are creating a more powerful weapon system in the multi-domain environment for Army aviators, ground commanders and infantry.
Reducing Risk
Sikorsky invested more than $1 billion in X2 technology and another billion in digital technology and tooling. Its long-standing digital factory features automated tools, additive manufacturing, augmented reality and other advances to lower cost, improve quality and reduce time-to-market. Already used on the HH-60W Combat Rescue Helicopter and the CH-53K Heavy Lift Helicopter, Sikorsky’s digital thread concept drives affordability, producibility and reliability.
An 80-percent scale prototype of Sikorsky’s RAIDER X design, the S-97 RAIDER is the only prototype of a FARA competition design currently flying. Each flight provides data to challenge, refine and confirm the precision of Sikorsky’s virtual models. These reliable, physics-based simulations of the design enable early discovery and minimize redesign, reducing risk and increasing the efficiency and affordability of future aircraft.
“Test stands, test beds and other ground-based mechanical devices don’t give you load and performance information,” said Pete Germanowski, Sikorsky’s FARA chief engineer. “They can’t provide that integrated look at what the helicopter actually does in the air. Flying a prototype like the S-97 RAIDER is the low-risk way to make that happen.”
Providing a Transformational Solution
RAIDER X’s MOSA and digital backbone make it a dynamic aircraft capable of evolving to ensure rapid, seamless growth and relevance for decades. This approach will enable the smooth incorporation of the Army’s Improved Turbine Engine and future mission systems.
Sikorsky has already successfully demonstrated MOSA adaptability by engaging independent, third parties. Through these demonstrations, third parties have successfully completed capability updates and integration with Sikorsky’s technical and software data packages to realize the Army’s vision.
With RAIDER X, the Army’s inventory would add a weapon system that combines speed, range, maneuverability, survivability and operational flexibility – all to provide a decisive edge in the USINDOPACOM and future threat environments.
S-97 RAIDER®, RAIDER X®, X2™ technology and the X2 TECHNOLOGY™ Demonstrator are registered or unregistered trademarks of Lockheed Martin Corporation. CH-53K® is a registered trademark of the Department of the Navy.
United and Emirates Expand Market Presence Through New Agreement
CHICAGO and DUBAI, Sept. 14, 2022 — United and Emirates announced a historic commercial agreement today that will enhance each airline’s network and give their customers easier access to hundreds of destinations within the United States and around the world*.
United will launch a new direct flight between Newark/New York and Dubai starting in March 2023 – from there, customers can travel on Emirates or its sister airline flydubai to more than 100 different cities. Tickets for United’s new Dubai flight are now on sale.
Starting in November, Emirates customers flying into three of the nation’s biggest business hubs – Chicago, San Francisco and Houston – will have access to nearly 200 U.S. cities in the United network – most of which only require a one-stop connection. At eight other U.S. airports served by Emirates – Boston, Dallas, LA, Miami, JFK, Orlando, Seattle and Washington DC – both airlines will have an interline arrangement in place.
United and Emirates announced their agreement today at a ceremonial event at Dulles International Airport, hosted by United CEO Scott Kirby and Emirates President Sir Tim Clark, featuring United and Emirates Boeing 777-300ER aircraft and flight crews from each carrier.
“This agreement unites two iconic, flag carrier airlines who share a common commitment to creating the best customer experience in the skies,” said United CEO Scott Kirby. “United’s new flight to Dubai and our complementary networks will make global travel easier for millions of our customers, helping boost local economies and strengthen cultural ties. This is a proud moment for both United and Emirates employees, and I look forward to our journey together.”
“Two of the biggest, and best-known airlines in the world are joining hands to fly people better to more places, at a time when travel demand is rebounding with a vengeance. It’s a significant partnership that will unlock tremendous consumer benefit and bring the United Arab Emirates and the United States even closer,” said Sir Tim Clark, President Emirates Airline. “We welcome United’s return to Dubai next year, where our hub Dubai essentially becomes a gateway for United to reach Asia, Africa and the Middle East via the combined network of Emirates and flydubai. We look forward to developing our partnership with United for the long term.”
Soon customers of both airlines can book these connecting flights on a single ticket – making check-in and luggage transfer faster and easier. For example – travelers will be able to visit United.com or use the United app to book a flight from Newark/New York to Karachi, Pakistan or go to Emirates.com to book a flight from Dubai to Atlanta or Honolulu.
This agreement will also give the loyalty program members of both airlines more opportunities for more rewards: United MileagePlus® members flying on United’s Newark/New York to Dubai flight can soon earn and redeem miles when connecting beyond on Emirates and flydubai and Emirates Skywards members will be able to earn miles when they travel on United operated flights. Eligible United customers will also soon have access to Emirates lounges when connecting to and from United’s new Dubai flight.
Both airlines have recently announced significant investments in the customer experience. Emirates will retrofit more than 120 aircraft as part of a $2 billion effort that includes elevated meal choices, a brand-new vegan menu, a ‘cinema in the sky’ experience, cabin interior upgrades, and sustainable choices. At United, the airline will add 500 new Boeing and Airbus aircraft to its fleet with a focus on a new signature interior that includes seat-back screens in every seat, larger overhead bins, Bluetooth connectivity throughout, and the industry’s fastest available in-flight WiFi.
* Codeshare activities and United’s new flight to Dubai are subject to government approvals.
About United
United’s shared purpose is “Connecting People. Uniting the World.” From our U.S. hubs in Chicago, Denver, Houston, Los Angeles, Newark/New York, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers. United is bringing back our customers’ favorite destinations and adding new ones on its way to becoming the world’s best airline. For more about how to join the United team, please visit www.united.com/careers and more information about the company is at www.united.com. United Airlines Holdings, Inc., the parent company of United Airlines, Inc., is traded on the Nasdaq under the symbol “UAL”.
Air Canada and United Airlines Expand Relationship to Make Transborder Travel Easier, With More Choice
MONTREAL, – Air Canada and United Airlines today announced a joint business agreement for the Canada-U.S. transborder market, building on their long-standing alliance, that will give more flight options and better flight schedules to customers traveling between the two countries. Customers will be able to connect to 38 codeshare destinations in the U.S. and eight of the most popular cities in Canada — all while enjoying the benefits of the carriers’ MileagePlus® and Aeroplan loyalty programs. The agreement will also strengthen and grow both carriers’ networks and help accelerate their COVID-19 recovery.
Air Canada and United Airlines Expand Relationship to Make Transborder Travel Easier, With More Choice (CNW Group/Air Canada)
Air Canada and United Airlines Expand Relationship to Make Transborder Travel Easier, With More Choice (CNW Group/Air Canada)
“United is a world-class airline and we are pleased to significantly expand our well-established partnership to further enhance the customer journey between Canada and the U.S. by offering more choice, greater convenience and an improved airport experience,” said Mark Galardo, Senior Vice President of Network Planning and Revenue Management at Air Canada. “This agreement marks a new phase in our evolving relationship that will speed the recovery from the pandemic and strengthen both carriers. It will also enable us to optimize our hubs and schedules and to broaden our global network connectivity to maintain our leadership in the market.”
“With this new agreement, we are further strengthening our long-standing partnership with Air Canada,” said Patrick Quayle, Senior Vice President of Global Network Planning and Alliances at United. “As international travel continues to recover, this expanded partnership will provide an enhanced experience for all transborder travel.”
Customers who search for flights between the U.S. and Canada on United’s or Air Canada’s websites and apps will find more flight options scheduled at more convenient times. Codeshare between the two carriers will also be expanded and members of both the MileagePlus and Aeroplan programs will have more accrual and redemption options.
In 2019, the U.S.-Canada transborder market was the second largest international passenger air transportation market in the world and the largest international market for both Canada and the U.S., as measured by seats.
Air Canada and United already cooperate in the transborder market, according to the terms of their existing U.S. antitrust immunity. Under the joint business agreement, subject to compliance with U.S. and Canadian regulatory and antitrust requirements, the two airlines will now be able to:
Coordinate their networks and schedules, enabling the carriers to offer customers more choice, including more flights throughout the day and more access to each airline’s seat inventory.
Enhance codeshare on transborder flights, excluding certain U.S. leisure markets and territories. The carriers anticipate customers will be able to connect to 46 transborder codeshare destinations with more than 400 daily frequencies in 2022 – with opportunities to add more codeshare destinations for domestic routes within Canada and the U.S.
Sell seats on each other’s transborder flights and share revenue on flights between hub markets (where regulatory authorities and antitrust requirements allow), allowing the carriers to grow their overall capacities.
Align customer policies for greater consistency and enable the seamless provision of onboard products, establish airport co-locations where available and provide extra value to each carriers’ frequent flyer programs.
Allow the two carriers to work closer together to advance their sustainability objectives.
The implementation of an expanded partnership builds on the existing close cooperation of the two carriers and previously acquired regulatory approvals. United and Air Canada are also founding members of Star Alliance and a transatlantic joint business agreement with the Lufthansa Group.
About Air Canada
Air Canada is Canada’s largest airline, the country’s flag carrier and a founding member of Star Alliance, the world’s most comprehensive air transportation network celebrating its 25th anniversary in 2022. Air Canada provides scheduled passenger service directly to 51 airports in Canada, 51 in the United States and 86 internationally. It is the only international network carrier in North America to receive a Four-Star ranking from Skytrax, which in 2021 gave Air Canada awards for the Best Airline Staff in North America, Best Airline Staff in Canada, Best Business Class Lounge in North America, and an excellence award for managing COVID-19. Through its leading travel loyalty Aeroplan program, Air Canada offers the ability to earn or redeem points on the world’s largest airline partner network of 45 airlines, plus through an extensive range of merchandise, hotel and car rental rewards. Its freight division, Air Canada Cargo, provides air freight lift and connectivity to hundreds of destinations across six continents using Air Canada’s passenger flights and cargo-only flights with its fleet of Boeing 767-300 freighters. Air Canada has committed to a net zero emissions goal from all global operations by 2050.
About United
United’s shared purpose is “Connecting People. Uniting the World.” From our U.S. hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers. United is bringing back our customers’ favorite destinations and adding new ones on its way to becoming the world’s best airline. For more about how to join the United team, please visit www.united.com/careers and more information about the company is at www.united.com. United Airlines Holdings, Inc., the parent company of United Airlines, Inc., is traded on the Nasdaq under the symbol “UAL”.
National Flight School Offers Financing Solution to Help Aspiring Pilots Access Careers in Commercial Aviation
PHOENIX, — AeroGuard Flight Training Center, a flight school on a mission to expand access to careers in commercial aviation space with four campus hubs across the United States, today announced a tuition partnership that is helping close the aviation skills gap by making flight training more affordable and accessible for aspiring pilots. In collaboration with Meritize, a pioneer in financing solutions for skills-based education and training, pilots-in-training can qualify for merit-based financing, which can in many cases reward individual borrowers for their past academic and military experiences.
“As many as half of learners who want to become pilots aren’t able to access these careers–solely because of the cost. If you have the skills, passion, and drive, you should have the opportunity to be a pilot,” said Joel Davidson, CEO of AeroGuard. “This innovative financing option helps make pilot training more affordable and put aviation careers within reach for more candidates from a variety of personal and professional backgrounds.”
The commercial aviation industry is facing a growing pilot shortage. More than 7,200 of the 15,000 American commercial airline pilots are set to turn 65 over the next decade. As airline demand rebounds from the record lows of the pandemic, transportation industry analysts forecast a global shortfall of at least 34,000 commercial pilots by 2025. Meanwhile, demand for commercial airline pilots is expected to increase 13 percent from 2020 to 2030, much faster than the average growth rate for all occupations. The median annual wage for airline pilots, copilots, and flight engineers was $202,180 in May 2021.
AeroGuard helps to ensure job placement through strategic partnerships with regional airline SkyWest and its network of major airline agreements, which provide a clear path from flight training to careers at four top commercial airlines. After completing required flight training hours, AeroGuard students are guaranteed a First Officer Final Interview with SkyWest, where they receive tuition reimbursement of up to $17,500 for their training after completing SkyWest’s Initial Operating Experience. Through SkyWest’s Guaranteed Pilot Interview program, students then receive interviews with SkyWest commercial airline partners, including Alaska, Delta, Southwest and United Airlines.
In addition to merit-based financing, AeroGuard’s lower tuition and shorter timeframe for completing required flight hours helps students more easily access training for careers in commercial aviation. Other aviation training programs can range anywhere from $60,000 to $125,000 or more and take 2-4 years to complete, making these in-demand careers inaccessible to career changers and individuals from under-resourced backgrounds. AeroGuard students typically finance their tuition through loans, although other options can exist including scholarship options, G.I. Bill benefits, or federal education and training funds through select degree programs.
The financing option offered on the Meritize platform aims to create a more inclusive and affordable pathway to careers in the commercial aviation industry. Unlike traditional lenders that rely solely on FICO scores and other financial records to determine whether to lend to an individual, Meritize considers the full breadth and depth of an individual’s academic or military achievements to enhance credit evaluation and potentially improve loan options. Because many of AeroGuard’s trainees are veterans, and Meritize specifically takes into account military experiences in its funding decisions, merit-based financing can provide a significant source of financial and credit assistance for veterans transitioning into civilian careers.
“To unlock pathways to in-demand careers like aviation, we need to fix the broken economics of paying for education and training in this country,” said Chris Keaveney, CEO of Meritize. “By breaking down barriers to financial access and inclusion needed to train for roles in aviation, employers and training providers can open up opportunities for career advancement and long-term social and economic mobility–and address the ongoing pilot shortage.”
AeroGuard, a four-time recipient of the FAA Diamond Award of Excellence, is headquartered in Phoenix, Arizona, with campus locations in Chandler, Ariz., Austin, Tex., and Ft. Myers, Fla. To find out more information about AeroGuard’s available programs, visit FlyAeroGuard.com.
About AeroGuard Flight Training Center: AeroGuard Flight Training Center is one of the country’s most successful flight schools, offering accelerated commercial pilot training to candidates from all over the world. With a commitment to safety and student success, AeroGuard has a proven track record of training airline-ready pilots, with over 1 million flight hours of training experience and graduating over 7,000 cadets. To learn more, visit FlyAeroGuard.com.
About Meritize: Meritize is a leading provider of funding solutions for skills-based education and workforce development. The company’s proprietary merit-based lending program goes beyond traditional underwriting and uses an individual’s academic or military achievements to enhance credit evaluation and expand funding opportunities, resulting in increased access to educational funding and improved outcomes. Frisco, Texas-based Meritize is privately held. For more information visit www.meritize.com.
SOURCE Meritize
CONTACT: sonya.bessalel@whiteboardadvisors.com
Spirit Airlines Disagrees with ISS Recommendation on Proposed Transaction with Frontier
MIRAMAR, Fla., May 31, 2022 — Spirit Airlines, Inc. (“Spirit” or the “Company”) (NYSE: SAVE) today commented on a report from Institutional Shareholder Services (“ISS”) regarding the Company’s definitive merger agreement with Frontier Group Holdings, Inc. (“Frontier”) (NASDAQ: ULCC), parent company of Frontier Airlines, Inc.
“We disagree with ISS’ recommendation against the Frontier-Spirit merger, which we continue to believe is in the best interest of Spirit stockholders. ISS appears overfocused on the absence of a reverse termination fee in that deal, and we have consistently maintained (as ISS also acknowledges) that the JetBlue proposal carries significantly greater regulatory obstacles, and JetBlue absolutely should pay Spirit stockholders more to compensate for that risk,” said Ted Christie, President and CEO of Spirit. “During the extensive discussions held between Spirit and JetBlue, JetBlue admitted that a lawsuit from DOJ seeking to block a merger with Spirit was a 100% certainty; therefore, JetBlue would have to prevail in or settle DOJ litigation in order to consummate the deal. Moreover, ISS did not recognize the elevated business disruption that Spirit would face from a lengthy review and litigation process ultimately resulting from a failed transaction with JetBlue after 18-24 months, nor did it adequately weigh the loss of substantial value Spirit stockholders otherwise would have received in a merger between Spirit and Frontier. We continue to believe the reverse termination fee is a moot point because there is nothing stopping JetBlue from walking away after achieving their goal of disrupting the Spirit-Frontier combination.
“Further, we disagree with ISS’ characterization that stockholders can reinvest the cash proceeds from a JetBlue transaction to maintain exposure to the airline industry recovery. Spirit stockholders would not receive $30 of cash per share for up to two years, if ever, during which time the airline industry recovery may have delivered value for stockholders that far exceeds JetBlue’s capped, inadequate and highly opportunistic offer. In contrast, the Frontier combination presents a compelling value creation opportunity due to the combination of cash and stock consideration, which gives our stockholders the chance to participate in the upside of the post-pandemic recovery in the airline industry upon close and benefit from up to $500 million in annual run-rate operating synergies.
“ISS also recommends Spirit stockholders do not vote JetBlue’s proxy card, indicating ISS still sees a potential path forward for Spirit to merge with Frontier. Overall, we ask our stockholders not to be distracted by JetBlue’s highly conditional tender offer, and our Board continues to unanimously recommend that Spirit stockholders vote FOR the merger proposal with Frontier,” said Christie.
ISS Acknowledges that Frontier Transaction Has “Robust Strategic Rationale” and
“Easier Glide Path to Obtain Regulatory Approval”; Calls JetBlue Offer “Defensive” and Opportunistic”
In its report, ISS highlights:
“The Frontier offer does have a sound strategic rationale, as the combined company will be the fifth largest U.S. airline and largest ultra-low cost carrier, and the equity component of the merger consideration would allow shareholders to participate in the potential upside of the combined company.”
“Spirit’s argument that the proposed transaction with Frontier has an easier glide path to obtain regulatory approval than JetBlue’s proposed transaction does appear reasonable. While a transaction with Frontier does eliminate the largest ULCC competitor to Frontier, it would create an overall larger ULCC with a more robust nationwide network.”
“JetBlue’s proposal arguably faces more complex regulatory headwinds, particularly given the ongoing DOJ lawsuit against the NEA.”
“JetBlue’s proposal would likewise remove the largest ULCC from the market, whose planes would be retrofitted to JetBlue standards, resulting in less seats per plane and therefore removing capacity from the market; JetBlue fares are also typically higher than Spirit’s.”
“[JetBlue’s offer] is clearly a defensive offer that may also prove to be opportunistic, given that Spirit traded above $33.00 for a sustained period in 2021.”
“The board’s view that more patient shareholders would reap greater benefits by staying invested in a combined Frontier/Spirit could prove out over time, as there is robust strategic rationale for the proposed merger.”
“Investors reacted positively to the merger announcement with Frontier, driving the SAVE share price up by 17.2 percent to close at $25.46 per share, compared to a 2.8 percent rise in the US Global Jets Index and a 0.3 percent decline in the Russell 3000 Index on the same day.”
Merger Agreement with Frontier
As previously announced, Spirit Airlines, Inc. entered into a merger agreement with Frontier Group Holdings, Inc. on February 5, 2022. The merger is expected to close in the second half of 2022, subject to satisfaction of customary closing conditions, including completion of the regulatory review process and approval by Spirit stockholders. The Spirit Board of Directors unanimously recommends that stockholders vote FOR all proposals relating to the transaction with Frontier.
Your Vote Is Important
The Spirit Board of Directors strongly recommends you vote “FOR” the merger on the WHITE proxy card today. For more information on how to vote for the merger, please call the Company’s proxy solicitor, Okapi Partners, on their toll-free number 855-208-8903 or email info@okapipartners.com.
About Spirit Airlines
Spirit Airlines (NYSE: SAVE) is committed to delivering the best value in the sky. We are the leader in providing customizable travel options starting with an unbundled fare. This allows our Guests to pay only for the options they choose — like bags, seat assignments and refreshments — something we call Á La Smarte. We make it possible for our Guests to venture further and discover more than ever before. Our Fit Fleet® is one of the youngest and most fuel-efficient in the U.S. We serve destinations throughout the U.S., Latin America and the Caribbean and are dedicated to giving back and improving those communities. Come save with us at spirit.com.
Spirit Airlines Disagrees with ISS Recommendation on Proposed Transaction with Frontier
MIRAMAR, Fla., May 31, 2022 — Spirit Airlines, Inc. (“Spirit” or the “Company”) (NYSE: SAVE) today commented on a report from Institutional Shareholder Services (“ISS”) regarding the Company’s definitive merger agreement with Frontier Group Holdings, Inc. (“Frontier”) (NASDAQ: ULCC), parent company of Frontier Airlines, Inc.
“We disagree with ISS’ recommendation against the Frontier-Spirit merger, which we continue to believe is in the best interest of Spirit stockholders. ISS appears overfocused on the absence of a reverse termination fee in that deal, and we have consistently maintained (as ISS also acknowledges) that the JetBlue proposal carries significantly greater regulatory obstacles, and JetBlue absolutely should pay Spirit stockholders more to compensate for that risk,” said Ted Christie, President and CEO of Spirit. “During the extensive discussions held between Spirit and JetBlue, JetBlue admitted that a lawsuit from DOJ seeking to block a merger with Spirit was a 100% certainty; therefore, JetBlue would have to prevail in or settle DOJ litigation in order to consummate the deal. Moreover, ISS did not recognize the elevated business disruption that Spirit would face from a lengthy review and litigation process ultimately resulting from a failed transaction with JetBlue after 18-24 months, nor did it adequately weigh the loss of substantial value Spirit stockholders otherwise would have received in a merger between Spirit and Frontier. We continue to believe the reverse termination fee is a moot point because there is nothing stopping JetBlue from walking away after achieving their goal of disrupting the Spirit-Frontier combination.
“Further, we disagree with ISS’ characterization that stockholders can reinvest the cash proceeds from a JetBlue transaction to maintain exposure to the airline industry recovery. Spirit stockholders would not receive $30 of cash per share for up to two years, if ever, during which time the airline industry recovery may have delivered value for stockholders that far exceeds JetBlue’s capped, inadequate and highly opportunistic offer. In contrast, the Frontier combination presents a compelling value creation opportunity due to the combination of cash and stock consideration, which gives our stockholders the chance to participate in the upside of the post-pandemic recovery in the airline industry upon close and benefit from up to $500 million in annual run-rate operating synergies.
“ISS also recommends Spirit stockholders do not vote JetBlue’s proxy card, indicating ISS still sees a potential path forward for Spirit to merge with Frontier. Overall, we ask our stockholders not to be distracted by JetBlue’s highly conditional tender offer, and our Board continues to unanimously recommend that Spirit stockholders vote FOR the merger proposal with Frontier,” said Christie.
ISS Acknowledges that Frontier Transaction Has “Robust Strategic Rationale” and
“Easier Glide Path to Obtain Regulatory Approval”; Calls JetBlue Offer “Defensive” and Opportunistic”
In its report, ISS highlights:
“The Frontier offer does have a sound strategic rationale, as the combined company will be the fifth largest U.S. airline and largest ultra-low cost carrier, and the equity component of the merger consideration would allow shareholders to participate in the potential upside of the combined company.”
“Spirit’s argument that the proposed transaction with Frontier has an easier glide path to obtain regulatory approval than JetBlue’s proposed transaction does appear reasonable. While a transaction with Frontier does eliminate the largest ULCC competitor to Frontier, it would create an overall larger ULCC with a more robust nationwide network.”
“JetBlue’s proposal arguably faces more complex regulatory headwinds, particularly given the ongoing DOJ lawsuit against the NEA.”
“JetBlue’s proposal would likewise remove the largest ULCC from the market, whose planes would be retrofitted to JetBlue standards, resulting in less seats per plane and therefore removing capacity from the market; JetBlue fares are also typically higher than Spirit’s.”
“[JetBlue’s offer] is clearly a defensive offer that may also prove to be opportunistic, given that Spirit traded above $33.00 for a sustained period in 2021.”
“The board’s view that more patient shareholders would reap greater benefits by staying invested in a combined Frontier/Spirit could prove out over time, as there is robust strategic rationale for the proposed merger.”
“Investors reacted positively to the merger announcement with Frontier, driving the SAVE share price up by 17.2 percent to close at $25.46 per share, compared to a 2.8 percent rise in the US Global Jets Index and a 0.3 percent decline in the Russell 3000 Index on the same day.”
Merger Agreement with Frontier
As previously announced, Spirit Airlines, Inc. entered into a merger agreement with Frontier Group Holdings, Inc. on February 5, 2022. The merger is expected to close in the second half of 2022, subject to satisfaction of customary closing conditions, including completion of the regulatory review process and approval by Spirit stockholders. The Spirit Board of Directors unanimously recommends that stockholders vote FOR all proposals relating to the transaction with Frontier.
Your Vote Is Important
The Spirit Board of Directors strongly recommends you vote “FOR” the merger on the WHITE proxy card today. For more information on how to vote for the merger, please call the Company’s proxy solicitor, Okapi Partners, on their toll-free number 855-208-8903 or email info@okapipartners.com.
About Spirit Airlines
Spirit Airlines (NYSE: SAVE) is committed to delivering the best value in the sky. We are the leader in providing customizable travel options starting with an unbundled fare. This allows our Guests to pay only for the options they choose — like bags, seat assignments and refreshments — something we call Á La Smarte. We make it possible for our Guests to venture further and discover more than ever before. Our Fit Fleet® is one of the youngest and most fuel-efficient in the U.S. We serve destinations throughout the U.S., Latin America and the Caribbean and are dedicated to giving back and improving those communities. Come save with us at spirit.com.