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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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Environment

Fiat launches beachy Topolino Vilebrequin as Stellantis ramps up EV production

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Fiat launches beachy Topolino Vilebrequin as Stellantis ramps up EV production

The Fiat Topolino Vilebrequin is a new beach town cruiser that captures the elegance, glamour, and relaxed vibe of the French Riviera. More significantly, the updated EV also heralds Stellantis’ plans to double EV production at its Kenitra Assembly Plant in Morocco.

Closer to a Mercury Villager Nautica or Ford F-150 Harley-Davidson than a new model on its own, the new Topolino Vilebrequin features colors and fabrics inspired by the French surfwear brand, and is based on the Dolcevita version of Stellantis’ electric microcar. With its open sides, a soft rollback roof, and turtle-tastic fabric prints, it’s ready to whisk you off on a carefree summer adventure in France or Italy – which are, coincidentally, the only two markets the “collector’s edition” Vilebrequin Topolino is currently available in.

“This encounter between the Fiat Topolino and our iconic sea turtle gave rise to a high-quality, lower-impact, and perfectly whimsical design,” says Roland Herlory, CEO of Vilebrequin. “(It is) the definitive summer toy, and the perfect witness to sun-soaked memories still to come.”

Like the standard Topolino, the new Vilebrequin model remains electronically limited to a top speed of 45 kph (just under 30 mph), and is equipped with a 5.5 kWh battery pack that ensures up to 75 km (about 45 miles) of electric range. Prices start at €13,490 ($15,810), and if you don’t want one you’re dead inside.

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Fiat Topolino Vilebrequin


The Vilebrequin Topolino is just the latest version of Stellantis’ electric microcar platform that underpins the Citroën Ami, Opel Rocks-e, and Fiat Topolino. Annual production of the little EVs has grown from 20,000 units and is reportedly on track for 70,000 in 2025.

Now, Mopar Insiders is reporting that number is about to get even bigger. Stellantis’ Chief Operating Officer (COO) for the Middle East & Africa (MEA) region, Samir Cherfan, announced plans to more than double the production capacity at the company’s Kenitra Assembly Plant in Morocco, from some 230,000 vehicles per year to more than 530,000.

The factory was opened in 2019, and the planned €1.2 billion ($1.4B) expansion is expected to add around 3,100 new jobs to the factory’s employee roster.

SOURCE | IMAGES: Stellantis.


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Business

Lakeland-owner Hilco eyes swoop for stricken jeweller Claire’s

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Lakeland-owner Hilco eyes swoop for stricken jeweller Claire's

The prolific high street investor which owns Lakeland and has backed chains including HMV and Superdry is sizing up a takeover of the UK operations of Claire’s, the struggling jewellery chain.

Sky News understands that Hilco Capital, which was also one of the recent bidders for Poundland, is among the parties expected to submit offers for Claire’s in the coming weeks, according to banking sources.

Other parties expected to examine offers for Claire’s British chain, which trades from about 280 stores, would include Alteri Investors and Modella Capital, which recently bought WH Smith’s high street chain.

The Telegraph reported earlier this month that Claire’s had hired Interpath Advisory to find a buyer for the UK business as it explores options – including bankruptcy – for its US-based operations.

Prospective buyers of the business have been told that a sale of the British chain could lead to significant numbers of store closures.

One retail industry boss speculated that as many as a third of the UK shops could be axed in a deal to salvage the rest of the chain, potentially putting hundreds of jobs at risk.

Claire’s has been a fixture in British shopping centres and on high streets for decades.

Houlihan Lokey, the investment bank, is advising on the sale of the US arm.

Claire’s, which is reported to trade from 2,000 stores globally, is owned by former creditors Elliott Management and Monarch Alternative Capital following a previous financial restructuring.

Hilco could not be reached for comment on Sunday.

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Politics

Embedding human rights into crypto isn’t optional, it’s foundational

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Embedding human rights into crypto isn’t optional, it’s foundational

Embedding human rights into crypto isn’t optional, it’s foundational

Embedding human rights into crypto systems is a necessity. Self-custody, privacy-by-default, and censorship-resistant personhood must be core design principles for any technology. The future of digital freedom depends on it.

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