Tag: United Airlines

United Airlines will cut up to 2,850 pilots without more federal aid

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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United Airlines said Thursday that it will furlough up to 2,850 pilots this fall unless the federal government provides more relief to help airlines cover their labour costs during a pandemic-fuelled downturn in travel. United’s figure is higher than the 1,941 pilots that Delta plans to furlough and the 1,600 targeted for termination at American.

The Chicago-based airline told pilots it will send furlough notices by US mail in the next few days, with the cuts taking effect between October 1 and November 30. The airlines and their labour unions are lobbying for another USD 25 billion to help the companies cover payroll costs for six more months, through next March.

However, talks between the White House and congressional Democrats over a larger virus-relief measure have stalled. Earlier this year, Washington set aside 50 billion in grants and loans for passenger airlines, including USD 25 billion to keep workers on the payroll through September.

Travel hasn’t rebounded as quickly as hoped, however, as the US has failed to control the coronavirus outbreak. Travel restrictions remain in place to prevent more spread. Delta, United, American and Southwest lost USD 10 billion between them in the second quarter.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

COVID-19 impact: United Airlines warns 36,000 workers they could be laid off

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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United Airlines is warning 36,000 employees — nearly half its US staff — they could be furloughed in October, the clearest signal yet of how deeply the virus pandemic is hurting the airline industry.

The outlook for a recovery in the airline industry has dimAll Postsmed in just the past two weeks, as infection rates rise in much of the US and some states impose new quarantine requirements on travelers.

Airlines say they must shrink to match falling travel demand. American Airlines executives have said they could have 20,000 more employees than the airline will need this fall.

United told employees Wednesday that not everyone who gets a layoff notice will be furloughed. The company said job losses could be reduced if enough employees accept buyouts or early retirement by a deadline next week.

The buyouts come at a price too, however. United said it would take a USD 300 million charge in the second quarter to cover voluntary departures so far. The company said it was unable to estimate the cost of workforce reductions for the rest of the year.

If every US airline matched United’s worst-case scenario of furloughs, it could be extrapolated to about 240,000 lost jobs nationwide, given United’s share of the domestic market.

Helane Becker, an analyst for Cowen, predicted Wednesday that US airlines will end 2020 with 150,000 to 200,000 fewer employees than they had at the end of 2019 — much bigger losses than she expected back in April.

The notices that United sent out are meant to comply with a law requiring employers warn workers at least 60 days before mass job cuts.

The furloughs could include up to 15,000 flight attendants, 11,000 customer service and gate agents, 5,500 maintenance workers and 2,250 pilots.

“The United Airlines projected furlough numbers are a gut punch, but they are also the most honest assessment we’ve seen on the state of the industry,” said Sara Nelson, president of the Association of Flight Attendants. “This crisis dwarfs all others in aviation history, and there’s no end in sight.”

United executives said any furloughs will take effect on or shortly after Oct. 1. United can’t lay off workers any sooner — that’s a condition of the USD 5 billion it got as its share of USD 25 billion in federal aid to help airlines cover payroll costs for six months.

The flight attendants’ union and other airline labor groups are lobbying Congress for another USD 25 billion to protect jobs through next March. But a senior United executive expressed doubt that Congress would approve the spending in an election year.

United has already cut capital spending by USD 2.5 billion and convinced thousands of employees to take unpaid leave. It has hoarded cash after raising billions in new borrowing — including mortgaging its MileagePlus frequent-flyer program.

But with ticket sales sagging again, the Chicago-based airline is still losing about USD 40 million a day, executives said.

Layoffs are “the last option left to protect the long-term interests of the company,” said the senior United official, who spoke to reporters on condition of anonymity.

Executives said the notices covered 45 percent of the airline’s US staff, most of whom are represented by unions. They would have reinstatement rights if United’s fortunes improve. Another 1,300 management and support staff will be laid off Oct. 1, the company said. Including international employees, United has a work force of about 95,000.

Air travel in the US plunged about 95 percent from March 1 until mid-April, then began a slow recovery. The number of US air travelers around the July 4 weekend was the highest since mid-March, but was still down about 70 percent from a year ago.

In recent weeks, the number of new reported cases of COVID-19 has roughly doubled to about 50,000 a day, with cases rising in Texas, Florida and California. Last month, New York, New Jersey, Connecticut and Chicago announced requirements that people arriving from states with high infection rates go into quarantine for 14 days, throwing up a new roadblock to travel.

United’s bookings for flights at its hub in Newark, New Jersey, have slumped badly since the region’s governors announced the quarantine requirements, falling 84 percent from a year earlier. That compares with a 73 percent decline in bookings for United’s other destinations.

Executives of other airlines have predicted their companies will be much smaller in October, and that air travel might not return to pre-pandemic levels for several years.

Delta Air Lines recently told employees that it will send layoff notices to more than 2,500 of its 14,000 pilots, but it has not publicly discussed the outlook for other workers. American has not said whether it has issued layoff notices, but executives have encouraged workers to take buyouts. Southwest Airlines said Wednesday it has not issued layoff warnings.

Germany’s Lufthansa has warned that it might cut 22,000 jobs, Air France last week announced plans to eliminate 7,500 jobs, and Latin America’s two largest carriers have filed for bankruptcy protection.

The International Air Transport Association estimates that global carriers could lose USD 84 billion this year. The airline trade group is lobbying governments to provide more financial help for carriers.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

United Airlines to send furlough warnings to 36,000 employees

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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United Airlines said on Wednesday it was preparing to send notices of potential furloughs to 36,000 U.S.-based frontline employees, or about 45% of staff, as demand hit by the coronavirus pandemic struggles to recover.

The final number of furloughs, which would be effective starting Oct. 1, will depend on how demand evolves and how many employees accept early exit packages and temporary leaves, United executives said.

Chicago-based United continues to burn through about $40 million of cash every day, with a number of efforts to cut costs and raise liquidity failing to compensate for the drastic drop-off in travel demand as COVID-19 cases continue to rise.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

China easing airline access amid conflict with Washington

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Chinese regulators said Thursday more foreign airlines will be allowed to fly to China as anti-coronavirus controls ease but it was unclear whether the change will defuse a fresh conflict with the Trump administration over air travel.

The announcement came after Washington said Wednesday it would bar four Chinese airlines from the United States because Beijing was failing to allow United Airlines and Delta Air Lines to resume flights to China.

Airlines that were flying to China when controls were imposed in March were allowed to keep making one flight per week. United and Delta had suspended their flights before that and asked permission to resume.

Airlines that aren’t on the March list can make one flight per week starting Monday, the Civil Aviation Administration of China said on its website.

The announcement appeared to open the door to United and Delta but CAAC gave no indication which carriers were affected. An employee who answered the phone at CAAC said she had no details. She would give only her surname, Yan.

Asked what it heard from Chinese regulators about its status, United said in a statement, “We look forward to resuming passenger service between the United States and China when the regulatory environment allows us to do so.”

The dispute adds to US-Chinese strains over trade, technology, Taiwan, human rights and the status of Hong Kong.

All foreign carriers authorized to fly to China will be allowed to increase to two flights per week if they go three weeks with no passengers testing positive for the virus, CAAC said. It said a route will be suspended for one week if the number of passengers who test positive reaches five.

Ahead of the Chinese announcement, the US Transportation Department accused Beijing of violating a 1980 agreement on air travel. It said in response, Chinese carriers would be allowed the same number of flights as Beijing permitted for US airlines.

The department said President Donald Trump could put the order into effect before June 16. The department protested last month that Beijing was preventing US airlines from competing fairly against Chinese carriers.

The four airlines affected by the order are Air China, China Eastern Airlines, China Southern Airlines and Xiamen Airlines.

The Chinese ministries of commerce and transportation didn’t immediately respond to questions about how Beijing might react.

Before the pandemic, there were about 325 passenger flights a week between the United States and China, including ones operated by United, Delta and American Airlines. While US carriers stopped flying, Chinese airlines made 20 weekly flights in mid-February and 34 by mid-March.

The Transportation Department said it objected to China’s March limit but Beijing responded last week that it was not violating the air-travel treaty because the same one-flight limit applies to Chinese airlines.

United and Delta announced last month that they hoped to resume flights to China in June, as air travel has begun to recover recently. United wants to fly from San Francisco to Shanghai and Beijing and from Newark, New Jersey, to Shanghai. Delta seeks to resume flights via Seoul to Shanghai from Seattle and Detroit.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

United Airlines to cut 30% of management in October, preparing pilot changes too

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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United Airlines Holdings Inc plans to cut at least 3,400 management and administrative positions in October as the coronavirus pandemic crushes air travel demand, and has told pilots to brace for changes as well, according to two memos seen by Reuters.

Chicago-based United is among the U.S. airlines that have accepted U.S. government payroll aid that bans job or pay cuts before Sept. 30. However, United and other carriers have warned that demand is unlikely to recover to pre-crisis levels by that date, forcing them to shrink in the fall.
The United memos are the first indication of just how much major airlines might downsize due to the health crisis.

“We have to acknowledge that there will be serious consequences to our company if we don’t continue to take strong and decisive action, which includes making decisions that none of us ever wanted or expected to make,” Kate Gebo, Executive Vice President Human Resources and Labor Relations, said in the memo to some 11,500 management and administrative employees.

Affected employees will be notified in mid to late July for an Oct. 1 effective date, she said, while encouraging employees to consider a voluntary separation before that date.
In a separate memo seen by Reuters, pilots were told to prepare for a “displacement” that will affect roughly 30% of roughly 12,250 pilots.

One pilot union official said the group was interpreting the message to mean a 30% reduction as soon as Oct. 1.

United sent memos on Monday to a number of work groups about near-term changes and potential long-term implications, spokeswoman Leslie Scott said.

“Travel demand is essentially zero for the foreseeable future and, even with federal assistance that covers a portion of our payroll expense through Sept. 30, we anticipate spending billions of dollars more than we take in for the next several months, while continuing to employ 100% of our workforce,” United spokesman Frank Benenati said in an email. “That’s not sustainable for any company.”

United and other airlines, which only months ago were mapping out growth plans, have parked jets and drastically cut flight schedules in an effort to reduce costs and shore up cash until demand recovers

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Airlines slash schedules, jobs and pay after new travel restrictions

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Airlines around the world announced they would make more drastic reductions to their flying schedules, cut jobs and seek government aid after countries further tightened border restrictions due to the fast spreading coronavirus.

United Airlines Holdings Inc booked $1.5 billion less revenue in March than the same time last year and warned employees that planes could be flying nearly empty into the summer, even after severe flight cuts.

United said it would cut corporate officers’ salaries by 50 percent and reduce flight capacity by about 50 percent in April and May, with deep capacity cuts also expected into the summer travel period.

“This crisis is moving really quickly,” United Chief Executive Oscar Munoz and President Scott Kirby said in a memo to employees on Sunday.

Things worsened over the weekend as Spain declared a state of emergency, the Trump administration added Britain and Ireland to its list of countries facing travel curbs, and Australia and New Zealand said all travellers would have to self-isolate for 14 days.

“We call on Congress and the White House to take all measures available to protect the health and payroll of American workers,” said Sara Nelson, president of the Association of Flight Attendants-CWA, which represents 50,000 U.S. flight attendants at 20 airlines, including United.

CAPA Centre for Aviation, an airline analysis and consulting firm, said most airlines globally will be bankrupt by the end of May without coordinated government and industry action to avoid such a catastrophe.

“Demand is drying up in ways that are completely unprecedented,” CAPA said in a report. “Normality is not yet on the horizon.”

UK airlines called on the British government to help ensure their survival, while Germany’s Tui AG and Scandinavian carrier SAS said they would suspend the vast majority of operations due to the COVID-19 outbreak and apply for government support.

Icelandair Group hf said it was cutting capacity and working with labour unions to reduce its salary cost “significantly”.

Air New Zealand Ltd said job losses would be necessary as it cut long-haul capacity by 85 percent over the coming months.

“We are now accepting that for the coming months at least Air New Zealand will be a smaller airline requiring fewer resources, including people,” Air New Zealand Chief Executive Greg Foran said in a statement.

The airline has halted trading in its shares until Wednesday.

Qantas Airways Ltd said it would be making fresh cuts to its flying schedule beyond the 25 percent reduction in international capacity announced last week due to the new travel restrictions.

UBS analysts said the latest travel restrictions would have a significant effect on Qantas’ international traffic, which historically accounted for around 45 percent of revenue and 25 percent of earnings before interest and tax.

“A downside scenario where international traffic is down 50 percent for a whole year and domestic down 30 percent could result in cash burn of up to A$200 million ($123.60 million) per month after incorporating changes to the business,” UBS said of Qantas.

Smaller rival Virgin Australia Holdings Ltd, which has a weaker balance sheet but a heavier domestic focus, said it was assessing its response to the new travel restrictions.

Virgin said on Friday it would make deeper capacity cuts, suspend financial guidance, freeze hiring and offer leave without pay to staff.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vistara and United Airlines launch codeshare operations

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Vistara and United Airlines have implemented the codeshare agreement signed in June 2019, with effect from February 14, 2020, Tata-SIA joint venture airline Vistara said in a statement on Monday. The agreement enables United Airlines to codeshare on Vistara-operated Indian domestic flights starting February 28, 2020.

Codesharing allows an airline to book its passengers on its partner carriers and provide seamless travel to destinations where it has no presence.

As per the agreement, United Airlines will put its ‘UA’ designator code on 68 Vistara-operated flights to 26 destinations every day, including but not limited to Ahmedabad, Amritsar, Bengaluru, Bhubaneswar, Chandigarh, Chennai, Goa, Hyderabad, Jodhpur, Kolkata, Lucknow, Pune, Raipur, Ranchi, Srinagar, Thiruvananthapuram, Udaipur, and Varanasi.

The codeshare agreement, also, means Club Vistara members will be able to earn and redeem CV Points on flights operated by United Airlines, and vice versa.

“The US continues to be one of the biggest source markets for foreign travellers into India and the region, and this partnership allows us to provide a seamless travel offering for customers to and from the US,” Vinod Kannan, Chief Commercial Officer, Vistara, said in a media statement.

“We are excited to offer our shared customers the option of building a seamless itinerary when planning travel to cities beyond New Delhi and Mumbai,” said John Gebo, senior vice-president (alliances) at United Airlines.

The two airlines had in June 2019 signed the codeshare pact that allows United Airlines to book seats for its passengers on Vistara’s flights in India.

(With inputs from PTI)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

United Airlines buys flight academy to gain source of pilots

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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United Airlines said Wednesday it is buying a flight academy to help produce a new supply of trained pilots, an unusual approach to deal with the wave of retirements now hitting the airline industry.

United will take over the Westwind School of Aeronautics in Phoenix. The airline said it expects the academy to produce about 300 graduates in its first year, who would then build experience at smaller operators before flying for United.

The academy’s graduates could help — but will not fully solve — United’s need for pilots in the future. The airline forecasts that it will need to hire more than 10,000 pilots by 2029, as thousands of its baby-boom pilots hit the mandatory retirement age of 65.

United and rivals including Delta and American have enough pilots for now because they recruit from smaller, regional carriers where pay is far lower.

However, several regional airlines have suffered shortages — bad enough for some to reduce flying. They have had to boost wages and signing bonuses. Regional carriers operate smaller planes under banners including United Express, Delta Connection and American Eagle.

United said it will be the only major US airline to own a flight-training academy, although other airlines have arrangements with flight schools to give their students a quicker path to a pilot job.

One reason for the pilot shortage is the high cost of training and gaining experience — it can top USD 100,000. Most applicants need a minimum of 1,500 hours to be hired by an airline. Chicago-based United said it is talking to financial institutions about helping the trainees with financing terms, but it gave no specifics, and a spokesman declined to say what the academy will charge for tuition.

The spokesman, Charles Hobart, said the academy course will last nine to 12 months with a curriculum that must be approved by the Federal Aviation Administration. After students graduate from the academy and gain enough flight hours for an airline pilot’s license, they will be assigned to a regional airline such as ExpressJet, Air Wisconsin or Mesa Airlines to gain more experience before flying for United, he said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

How bankruptcy works for companies and creditors

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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More than 20,000 companies file for bankruptcy every year.

Although companies follow many different paths to bankruptcy, each one encounters a process that is carefully designed to balance the rights of debtors and creditors.

As I have learned from studying and practising bankruptcy law, the system is not perfect, and sometimes outcomes seem unfair. But bankruptcy is definitely not a “get out of jail free” card for companies deep in debt.

Making the best of a grim situation

To most people, bankruptcy has a negative image. And for good reason: A filing almost always means there’s not enough money to go around.

But the system makes the best of a grim situation by imposing an orderly and open process that preserves value and encourages negotiation. Bankruptcy reorganisations by well-known brands such as Delta and General Motors show that it can bring parties together and resurrect struggling companies.

At the most fundamental level, the Bankruptcy Code creates an estate to collect all assets in one place, identify and categorise claims against the debtor in terms of priority and then distribute the assets accordingly.

Exactly how this plays out depends largely on what type of bankruptcy case the debtor files.

Chapter 7 vs. Chapter 11

Large business debtors have two bankruptcy options: liquidation or reorganisation.

Chapter 7 cases are designed to liquidate the company, meaning it will no longer exist, and any remaining value is divided up and distributed to creditors.

In contrast, a Chapter 11 reorganisation allows a debtor to sell some or all of its assets or propose a reorganisation plan that aims to resolve and satisfy enough creditors to re-emerge as a going concern.

For example, airlines United, Delta and American all filed for Chapter 11 protection in the mid-2000s and managed to unload enough debt to stay aloft. More recent filings seeking reorganisation include those by Sears, Pacific Gas and Electric Company and Toys R Us.

Once a Chapter 11 plan of reorganisation is finalised and approved, a debtor emerges from bankruptcy and continues operating, usually in a stronger position than before.

Benefits of bankruptcy for debtors

Bankruptcy provides at least two valuable benefits to all debtors: time and space.

The moment a debtor files its petition, an automatic stay is imposed on creditors, which operates like a pause button on any collection efforts, litigation or similar actions. Creditors can ask the court to lift the stay under certain circumstances, but the standard for doing so is often difficult to meet.

The bankruptcy court has broad authority to control all matters involving the debtor’s estate, including claims that are distantly related to the main bankruptcy case. The debtor may ask the court to pause other lawsuits outside of the bankruptcy case if they affect the estate. By bringing together all those with a stake in the company’s assets in one place, a debtor can more efficiently deal with all claims against it.

Debtors then evaluate their problems and make the necessary changes to succeed after reorganising. This includes deciding which contracts they want to carry forward and which to abandon.

To avoid a contested process, savvy debtors seek a global settlement with as many stakeholders as possible and offer “sweeteners” to sway undecided creditors to support their plan.

Benefits for creditors

Clearly, bankruptcy provides debtors with significant power to rearrange their business affairs.

What many people misunderstand, however, is that this power is balanced by strong creditor protections For example, the Bankruptcy Code requires a debtor to publicly file information about all of its assets and liabilities, sit for a bankruptcy deposition with creditors and seek the court’s permission before taking any actions outside of the ordinary course of business.

The code provides for additional checks on the debtor, including the unsecured creditors’ committee and the U.S. Trustee. Creditors that are concerned about the debtor’s ability to preserve the estate’s value may ask the court to appoint an examiner or trustee to take possession of the estate, and creditors may even move to dismiss the case if they believe the debtor is abusing the bankruptcy process.

These and other features add a degree of fairness to an inherently unjust situation. The debtor may be sitting in the driver’s seat, but numerous other stakeholders have the power to make sure that the company follows the rules of the road.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Spirit Airlines unveils Whatsapp service for reservations, booking changes

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Spirit US-based carrier Spirit Airlines is debuting Whatsapp communication for flight reservations, booking modifications, and basic questions in English and Spanish, for $25.

Starting September 1, the Florida-headquartered airline will initiate a service to allow customers to chat with representatives from the company, according to the Washington Post. Queries will first be received by a chatbox capable of providing basic information, and as the conversation progress, a Spirit agent can take over, reported CNBC. To complete bookings, guests will be sent an external link via Whatsapp.

The ultra-low-cost carrier, which recently landed in hot water after a bat was found lodged in an overhead bin, said there is a $25 charge associated with new bookings or modifications of old ones made through Whatsapp, which is similar to what it would cost if done on the phone. It added that booking fees waived for online reservations.

The move provides more accessible options to customers for booking flights, with the upside being that customers do not have to wait on hold to get through to an agent and asking questions about travel is free.

“We launched this service to better connect with our Guests, both domestically and abroad, as many have told us that they would rather communicate on a familiar and convenient service like WhatsApp,” said Bobby Schroeter, Spirit’s vice president of sales and marketing, in a press release. “This new messaging service allows Guests to communicate with us in English and Spanish and to opt in to WhatsApp messaging. It is all part of our goal to elevate and improve our Guest experience.”

Due to its extremely low fares, Spirit is notorious for putting additional fees for basic facilities like ordering water, selecting a seat, carrying a bag, or even checking in with a human agent. This explains why the airline was the lowest-ranking in terms of passenger satisfaction, according to the American Customer Satisfaction Index.

But the carrier boasts making strides in the industry, a claim corroborated by an ‘airline scorecard’ by the Wall Street Journal, which listed Spirit among the top American airlines based on overall performance, which included delays, cancellations, complaints and mishandled baggage data. It ranked four out of eight airlines, a significant improvement after its near-to-bottom placement years ago.

Spirit’s foray into this customer service model is the latest in a series of trends among air carriers to connect more directly with their customers. In June, Delta Air Lines began testing a text messaging feature for Apple devices. A United Airlines spokeswoman told CNBC that it was considering a chat platform too.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow