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Some pilots at Spirit Airlines are worried and scouring for other opportunities after a judge last month blocked the low-cost air carrier’s proposed merger with competitor JetBlue Airways, throwing its future into doubt.

Spirit pilots, recruiters and industry sources told Reuters that the ruling has led to increased job applications at other places of employment. Spirit Chief Financial Officer Scott Haralson last week said the company was looking into “right sizing” its labor costs, adding to the uneasiness.

A Spirit spokesperson said attrition levels are not out of the ordinary and pilot resignations this year have trended below its forecast for 2024.

“We remain confident about Spirit’s future and are committed to the well-being of our team members,” the spokesperson said.

The ultra-low-cost carrier has struggled to return to sustainable profitability due to softer demand in core markets and the grounding of dozens of its aircraft due to a snag with RTX’s Pratt & Whitney Geared Turbofan engines.

Analysts are not sure about Spirit’s ability to survive if the $3.8 billion merger deal remains blocked. Some analysts have suggested that the company could face bankruptcy if it cannot shore up its finances, and S&P Global, Moody’s and Fitch all downgraded the airline’s credit ratings after the ruling, citing higher default and refinancing risks.

“It’s very stressful,” said one Spirit pilot with more than five years of experience who has applied for jobs at Delta Air Lines, United  and American Airlines. Another Spirit pilot said he’s spoken to numerous colleagues who are looking for other opportunities. The pilots spoke on the condition of anonymity.

Spirit’s pilot union declined to comment.

Job applications at United from Spirit pilots have increased since the court decision, two industry sources told Reuters. United, which plans to hire 2,000 pilots in 2024, down from 2,350 in 2023, in a statement said it has “a strong applicant pool.”

The job market for pilots has cooled after a two-year boom. Hiring has slowed for five straight months, data from Future & Active Pilot Advisors show, as major carriers have mostly caught up with staffing needs. Hiring in January was down 18% from a year ago.

Flying for United, Delta or American Airlines is seen as an upgrade for pilots at regional and budget carriers like Spirit, but the rise in interest reflects growing worry about Spirit’s future.

“With a seniority-based system you don’t normally move between companies and only in times of failure or real hardship would you even consider it,” said Kit Darby, a US aviation consultant who specializes in pilot career development.

Darby said he has recently spoken to half a dozen Spirit pilots seeking new jobs or career advice.

An exodus of pilots could hurt Spirit’s operations but also reduce costs. The airline had about 3,500 pilots at the end of 2023.

Spirit last week dismissed speculation about its future as a “misguided narrative,” saying it has boosted liquidity to survive even if the merger fails to close.

The Florida-based airline has cut its capacity growth plans. Spirit late last year slowed pilot hiring and promotions to the captain’s chair. It also suspended training for new pilots and flight attendants and offered voluntary time off for cabin crew members.

Spirit last week said it was working on solutions for its labor costs as it has “a lot of staffing” across the board. A spokesperson declined to provide more details.

Those comments left pilots with more questions. One said he was not sure how Spirit would resolve over-staffing, saying he hoped enough pilots would leave voluntarily to avoid potential furloughs.

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Collapsed crypto firm Ziglu faces $2.7M deficit amid special administration

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Collapsed crypto firm Ziglu faces .7M deficit amid special administration

Collapsed crypto firm Ziglu faces .7M deficit amid special administration

Thousands of savers face potential losses after a $2.7 million shortfall was discovered at Ziglu, a British crypto fintech that entered special administration.

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Heidi Alexander says ‘fairness’ will be government’s ‘guiding principle’ when it comes to taxes at next budget

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Heidi Alexander says 'fairness' will be government's 'guiding principle' when it comes to taxes at next budget

Another hint that tax rises are coming in this autumn’s budget has been given by a senior minister.

Speaking to Sunday Morning with Trevor Phillips, Transport Secretary Heidi Alexander was asked if Sir Keir Starmer and the rest of the cabinet had discussed hiking taxes in the wake of the government’s failed welfare reforms, which were shot down by their own MPs.

Trevor Phillips asked specifically if tax rises were discussed among the cabinet last week – including on an away day on Friday.

Politics Hub: Catch up on the latest

Tax increases were not discussed “directly”, Ms Alexander said, but ministers were “cognisant” of the challenges facing them.

Asked what this means, Ms Alexander added: “I think your viewers would be surprised if we didn’t recognise that at the budget, the chancellor will need to look at the OBR forecast that is given to her and will make decisions in line with the fiscal rules that she has set out.

“We made a commitment in our manifesto not to be putting up taxes on people on modest incomes, working people. We have stuck to that.”

Ms Alexander said she wouldn’t comment directly on taxes and the budget at this point, adding: “So, the chancellor will set her budget. I’m not going to sit in a TV studio today and speculate on what the contents of that budget might be.

“When it comes to taxation, fairness is going to be our guiding principle.”

Read more:
Reeves won’t rule out tax rises

What is a wealth tax and how would it work?

👉Listen to Politics at Sam and Anne’s on your podcast app👈      

Afterwards, shadow home secretary Chris Philp told Phillips: “That sounds to me like a barely disguised reference to tax rises coming in the autumn.”

He then went on to repeat the Conservative attack lines that Labour are “crashing the economy”.

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Chris Philp also criticsed the government’s migration deal with France

Mr Philp then attacked the prime minister as “weak” for being unable to get his welfare reforms through the Commons.

Discussions about potential tax rises have come to the fore after the government had to gut its welfare reforms.

Sir Keir had wanted to change Personal Independence Payments (PIP), but a large Labour rebellion forced him to axe the changes.

With the savings from these proposed changes – around £5bn – already worked into the government’s sums, they will now need to find the money somewhere else.

The general belief is that this will take the form of tax rises, rather than spending cuts, with more money needed for military spending commitments, as well as other areas of priority for the government, such as the NHS.

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Heidi Alexander says ‘fairness’ will be government’s ‘guiding principle’ when it comes to taxes at next budget

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Heidi Alexander says 'fairness' will be government's 'guiding principle' when it comes to taxes at next budget

Another hint that tax rises are coming in this autumn’s budget has been given by a senior minister.

Speaking to Sunday Morning with Trevor Phillips, Transport Secretary Heidi Alexander was asked if Sir Keir Starmer and the rest of the cabinet had discussed hiking taxes in the wake of the government’s failed welfare reforms, which were shot down by their own MPs.

Trevor Phillips asked specifically if tax rises were discussed among the cabinet last week – including on an away day on Friday.

Politics Hub: Catch up on the latest

Tax increases were not discussed “directly”, Ms Alexander said, but ministers were “cognisant” of the challenges facing them.

Asked what this means, Ms Alexander added: “I think your viewers would be surprised if we didn’t recognise that at the budget, the chancellor will need to look at the OBR forecast that is given to her and will make decisions in line with the fiscal rules that she has set out.

“We made a commitment in our manifesto not to be putting up taxes on people on modest incomes, working people. We have stuck to that.”

Ms Alexander said she wouldn’t comment directly on taxes and the budget at this point, adding: “So, the chancellor will set her budget. I’m not going to sit in a TV studio today and speculate on what the contents of that budget might be.

“When it comes to taxation, fairness is going to be our guiding principle.”

Read more:
Reeves won’t rule out tax rises

What is a wealth tax and how would it work?

👉Listen to Politics at Sam and Anne’s on your podcast app👈      

Afterwards, shadow home secretary Chris Philp told Phillips: “That sounds to me like a barely disguised reference to tax rises coming in the autumn.”

He then went on to repeat the Conservative attack lines that Labour are “crashing the economy”.

Please use Chrome browser for a more accessible video player

Chris Philp also criticsed the government’s migration deal with France

Mr Philp then attacked the prime minister as “weak” for being unable to get his welfare reforms through the Commons.

Discussions about potential tax rises have come to the fore after the government had to gut its welfare reforms.

Sir Keir had wanted to change Personal Independence Payments (PIP), but a large Labour rebellion forced him to axe the changes.

With the savings from these proposed changes – around £5bn – already worked into the government’s sums, they will now need to find the money somewhere else.

The general belief is that this will take the form of tax rises, rather than spending cuts, with more money needed for military spending commitments, as well as other areas of priority for the government, such as the NHS.

Continue Reading

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