Articles tagged “low-cost carriers”

Good morning from Skift. It's Tuesday, February 8, in New York City. Here's what you need to know about the business of travel today.

When Allegiant President John Redmond adds the CEO title in June, he'll have to deal with some of the same issues, such as the pandemic, that he's trying to handle now. Add one more thing to the list: Frontier could become a more formidable flight competitor if it gets the OK to merge with Spirit.

The rumors have come true with Spirit Airlines and Frontier Airlines unveiling plans to merge Monday. The deal would create a U.S. budget juggernaut and the country's fifth largest airline but likely faces a tough approvals process from the pro-competition Biden administration.

Most trans-border joint ventures are between major airlines, like Delta and Aeromexico. But Allegiant Air and Mexico's Viva Aerobus are proposing a low-cost-carrier alliance that they say would boost brand awareness for both airlines and give travelers more options.

All airlines are unhappy in the pandemic. But Azul is unhappy in its own way. Its strategic verve stands out.

If you're looking for flickers of hope, new data suggests that budget airlines are seeing better-than-expected rebounds in Europe. But routes serving some countries, like beleaguered Spain, remain weaker than others.

Legacy airlines are in trouble. Many deserve bailouts. But let's not take it too far. There's no reason to penalize low-cost airlines. If they can make money with cheap fares, let them.

Even the best-run airlines will eventually run out of cash if ticket sales dry up. Governments across the world are going to have to step in.