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Castlelake begins talks with bankrupt Spirit after Frontier's bid is deemed inviable
Four people with knowledge of the situation say that Castlelake, an investment firm, has entered 'talks' to buy Spirit Airlines after a rival offer from Frontier Group Holdings in November was deemed to be unviable. Castlelake's discussions with Spirit Airlines may not lead to a viable deal or offer, but they have revived hope that Spirit, which has filed for bankruptcy twice in less than one year, could still find a way out through a sale, rather than risking liquidation or becoming a much smaller airline. CNBC was the first to report Castlelake's interest. Spirit and Frontier declined to comment. Castlelake didn't immediately respond to an inquiry for comment. "A VERY DIFFERENT SENSE OF SPIRIT" The company's survival is at stake. Marshall Huebner of Davis Polk & Wardwell, representing Spirit at a hearing held on Wednesday in the U.S. Bankruptcy Court of the Southern District of New York said: "It's fair to state that the airline was substantially reimagined and almost completely re-invented over the past several months." "This is an entirely different spirit. He said that the Spirit is smaller, tighter and better. Spirit's creditors kept the carrier afloat in its second Chapter 11 through emergency financing, including a lifeline of $100 million secured in December for operations and restructuring. The next steps could determine if Spirit is acquired or disappears. The union of pilots is publicly pressing bondholders to release additional financing in order to avoid liquidation. In a letter sent to bondholders on January 13, the Air Line Pilots Association (the union that represents Spirit's Pilots) said: "What remains unclear is whether or not its bondholders are willing to honor their funding commitments to allow a restructuring, or if they would rather force a liquidation, which would destroy South Florida's hometown carrier." Spirit's problems are partly due to the tougher environment that discount airlines face: excessive?capacity and tepid leisure demand, as well as fare pressure from legacy carriers who flood the market with cheap seats. Spirit's financial officer Fred Cromer said that the industry did not see a hoped-for recovery in 2025. This left Spirit overextended, and forced to make drastic cost cuts. This combination undermined Spirit’s turnaround following its first bankruptcy. In October, the airline reduced its fleet by almost 100 aircraft and exited more than a dozen U.S. market and suspended around 40 routes in its restructuring plan. Spirit's financial future is becoming increasingly uncertain as its bankruptcy proceedings began in August. This was its second filing within a year. Castlelake launched Merit AirFinance in August. The platform is backed by $1.8billion of deployable capital and aims to provide debt funding to airlines and aircraft lessees for both new and used assets. Reporting by Sabrina Valle in New York and Doyinsola Oladipo in Bengaluru, with additional reporting by Shivansh Tiwary in Bengaluru, Abhinav Paramar in Bengaluru, and Nathan Gomes at Bengaluru. Editing by Shailesh Kuber, Vijay Kishore and Rod Nickel.
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Largest US electric grid expects all-time record winter demand
The PJM 'Interconnection', the U.S. largest power grid, is expected to reach a new record next week. This is as the United States prepares for a blast of Arctic cold. PJM's forecast for the next seven days, published on Thursday morning, predicted 144 465 megawatts on demand on 27 January. This would be a new?winter record for PJM, surpassing the 143.700 megawatts set in January 2025. PJM, the largest grid operator in North America, serves 67 million customers?in thirteen states and Washington, D.C. PJM struggles to keep up 'with the booming demand resulting from the proliferation of 'Big Techs power-hungry?data?centers required for the rapid growth of artificial intelligence. PJM did not respond to a request for comment. The grid operator stated in November that it would be able to provide enough resources to service the 67,000,000 people?in its footprint?this winter, under the expected conditions. PJM anticipates having a total of?180.800 megawatts operational capacity. This is enough to meet peak demand. The National Weather Service has predicted that a cold front will bring sub-zero temperatures to the Eastern two-thirds.
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EU diplomat: EU-Mercosur agreement likely to come into effect from March.
An EU diplomat said that the EU's free-trade agreement with South American nations will likely?be implemented on a temporary basis as early as March. On?Thursday a challenge to the EU's highest court is looming. On Wednesday, EU lawmakers sent the controversial trade agreement between the EU and Brazil, Argentina Paraguay, and Uruguay to the European Court of Justice. This could delay the deal by up to two years. An EU diplomat said that the EU-Mercosur Agreement would be implemented provisionally after the first Mercosur nation ratifies it. The diplomat said that "Paraguay is likely to be the next country in March." MERZ, CHANCELLOR OF THE GERMAN BUSINESSES, CONDEMNS DELAY After 25 years of negotiation, the EU has signed its largest ever trade pact. This delay has angered many German businesses and government officials. Supporters say that the agreement is crucial to counterbalance business lost due to U.S. Tariffs and reduce reliance on China. They worry that a delay could hurt Europe's economic situation. Tobias Meyer is the CEO of logistics group DHL. He said: "The setback undermines Europe’s competitiveness, and threatens European jobs and prosper" He said that it would be good to have the pact implemented while the court investigates. "Europe cannot afford to fall further behind," he said. On Thursday, Chancellor Friedrich Merz said that he regretted European Parliament's decision to the delegates of the World Economic Forum held in Davos, the Swiss Alpine resort. But rest assured, we will not stop. The Mercosur agreement is fair and balanced. "There is no other alternative if we are to achieve higher growth in Europe," Merz stated. The deal is being criticized by critics, including France, who say that it will lead to an increase in the importation of beef, poultry, sugar, and other cheap products. French farmers staged major protests against the trade agreement in Paris with hundreds of tractors blocking the roads and landmarks like the Eiffel tower. France says that the provisional implementation would be undemocratic The French sugar beet lobby, the?CGB, has rejected any possibility that the agreement could take effect only provisionally. "That's a denial to democracy." Unacceptable!" Franck Sander said?. A spokesperson for France’s agriculture minister declined to comment. The likely political backlash could make it difficult to apply the pact in the interim, while awaiting the final ruling and approval by the parliament. And the European Parliament would retain the right to revoke the pact later. Maud Bregeon, spokesperson for the French government, told?CNews TV that if (European Commission president) Ursula von der Leyen - the European Union - were to force a provisional application through, given the Strasbourg vote, it would be a democratic violation. The European Commission said that it would engage with EU government and legislators before deciding on its next move. The EU leaders will meet in Brussels later this Thursday to discuss the strained transatlantic relationship in light of U.S. president Donald Trump's demand over Greenland
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Defence stocks dip on Ukraine peace hopes, but Ukraine-exposed stocks rise
European stocks that would benefit from the end of Russia's conflict in Ukraine rose?on Friday, while defence stocks fell?after Ukrainian President Volodymyr Zelenskiy announced that Ukrainian and Russian teams would have their first trilateral meetings with U.S. officials. During his meeting with U.S. president Donald Trump, Zelenskiy talked about security guarantees and a post-war recovery plan. Austrian 'bank Raiffeisen' gained 6%. Wizz Air and travel company Tui rose 9% and respectively 4%. Ukraine-exposed miner Ferrexpo surged 19%. Buzzi, Heidelberg Materials, and Rockwool were among the best-performing stocks in an index of European construction and materials stocks. All rally when the markets are more optimistic about a possible deal to end the war. An index of European defence stocks fell 2.3% on the day, its largest daily drop since early December. Saab fell?4,3%, and Rheinmetall?3,7%. Defence stocks were already under pressure after Trump backtracked on tariff threats to Europe and decided against taking Greenland militarily. (Reporting and editing by Danilo Maosi; Alun John)
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Trump says Greenland agreement framework has been reached, and rules out tariffs
Donald Trump, the U.S. president, abruptly reversed his position on Wednesday, saying that he would not use force to take 'Greenland. He also ruled out using tariffs to gain leverage. A deal is in sight for the resolution of the dispute over the Danish territory, which could have caused the biggest rupture in transatlantic ties in decades. Trump's retraction of his weeks-long rhetoric, which shook NATO and threatened a global trade war, came on a quick trip to Davos in Switzerland for the annual World Economic Forum meeting. Trump suggested that Western Arctic allies can forge a deal to satisfy his desire for the "Golden Dome", a missile-defense system, and gain access to vital minerals, while blocking Russia's and China’s ambitions in the Arctic. After a meeting with NATO Secretary-General Mark Rutte, Trump told reporters that "it's a contract with which everyone is very pleased." "It is a long-term deal. It's a long-term, ultimate deal. It puts everyone in a good position, particularly as it pertains minerals and security." He said: "It is a deal for life." A NATO spokesperson stated that seven NATO allies would work together in the Arctic to ensure their collective safety. The spokesperson stated that "Negotiations will continue between Denmark, Greenland and the United States to ensure that Russia and China do not gain a foothold in Greenland - either economically or militarily." DENMARK: RESPECT DANISH SOUVENIRITY, GREENLAND IS CRUCIAL Trump stated on his Truth Social platform that?the?U.S. NATO and the U.S. had "formed a framework for a future deal in respect of Greenland, and in fact the entire Arctic Region," Denmark stated that the issue should not be dealt with on social media but rather through private diplomacy. Lars Lokke Rasmussen, Denmark's foreign minister, told Danish public broadcaster DR that it was crucial to respect the integrity and sovereignty (of Denmark) as well as the right of Greenlandic people - to self-determination. Rasmussen confirmed that he spoke with Rutte, but refused to give details about what was agreed. Greenland’s government has not responded to a comment request. Trump claimed that he had asked Vice President JDVance, Secretary Marco Rubio and Special Envoy Steve Witkoff, to participate in further discussions. In a speech in a Swiss Alpine resort earlier in the day?the Republican U.S. President acknowledged the financial markets' discomfort over his threats and ruled force out. Trump said, "People thought that I would use violence. But I don't have to use it." "I don’t want to use violence." "I won't use any force." S&P 500 index rose 1.2% as a result of the change in stance on tariffs. This added to the recovery of the market after the steepest drop in equities for three months. NATO allies are unnerved at Trump's increased threats to take the territory of Denmark, a NATO ally that has been a U.S. ally for many years. In his first year as president, Trump has repeatedly issued severe threats, which spooked the markets, before rescinding them or watering them down. Steve Holland reported from Davos, Trevor Hunnicutt from Washington, and Dave Graham and Ariane Luthi contributed additional reporting. Terje Solsvik also contributed. Stine Jacobsen and Soren Jeppesen were interviewed.
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Oil prices settle higher on force majeure at Kazakh field, slow Venezuela exports
The oil prices rose 0.5% on Wednesday, as a result of optimism about tighter supplies after a temporary closure at two large Kazakh fields and the low volume?of Venezuelan oil exports that highlighted slow progress towards reversing production cuts in South America. Brent futures rose 32 cents or 0.5% to $65.24 per barrel. The U.S. West Texas intermediate crude contract rose by 26 cents or 0.4% to $60.62 per barrel. Both contracts closed 1.5% higher than the previous session, after OPEC+ member Kazakhstan?halted production at its Tengiz oilfields and Korolev on Sunday because of power distribution problems. Four industry sources said on Wednesday that oil from the vast Kashagan fields was diverted for the first to the domestic market due to bottlenecks at the Black Sea CPC Terminal after drone attacks seriously damaged equipment. According to a letter from TCO, the operator of Tengiz Oilfield has declared force majeure on crude oil deliveries in the 'CPC pipeline system. On Tuesday, three industry sources were quoted as saying that oil production could be stopped at two Kazakh fields for seven to ten days. PDVSA vessel tracking data and documents showed that the volume of Venezuelan crude oil exported to the U.S. under the $2 billion deal reached 7.8 million barrels Wednesday. This highlights the slow progress?that has prevented state-run oil companies from fully reversing the recent production cuts. A preliminary poll on Tuesday showed that U.S. crude and gasoline stocks were likely to have increased by about 1.7m barrels in the last week, while distillate stockpiles are expected to be down. In its latest oil market report on Wednesday, the International Energy Agency revised higher its 2026 global oil consumption growth forecasts. This suggests a slight reduction in surpluses for this year. Analyst Giovanni Staunovo at UBS said that the increased geopolitical risks, which put pressure on oil markets because?tariffs might slow economic growth, led to a risk-off attitude. The American Petroleum Institute will release its weekly inventory figures at 4:30 pm EST on Wednesday. Government data will be released on Thursday at 12 noon EST, a day after due to the U.S. federal holidays on Monday. Reporting by Stephanie Kelly, Katya Glubkova, and Emily Chow, in London; Editing by Mark Potter. Kirsten Donovan. Elaine Hardcastle. Paul Simao. Rod Nickel.
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Spanish train drivers strike for three days after fatal derailments
Spain's largest train drivers' union called a nationwide three-day strike on February 9-11, demanding measures to ensure railway safety following three derailments within 48 hours that caused crashes which left dozens of people dead, including two drivers. The commuter train that derailed in Gelida, near Barcelona, on Tuesday was killed by the driver, and four other passengers were seriously injured. The announcement came after two trains collided near Adamuz, in the southern province Cordoba. It was one of Europe's most serious train accidents. One of the 43 victims was a train driver. Sources and experts have said that a large piece of machinery discovered near the Adamuz accident site could be the missing undercarriage. Investigators are searching for it to find out why the accident occurred. The Transport Minister Oscar Puente said that investigators have taken photos and analysed the fragment. He added that it seemed logical that the fragment would have flown into the stream after the collision between the two trains. Puente stated that authorities are working to resume the Madrid-Andalucia railway link, which was suspended after Sunday's accident on February 2. Adif, the rail network operator, said that a rock fell on the track during the same storm and caused a third derailment on Barcelona's regional train network on Tuesday. The train operators' union SEMAF stated that the fatal accidents in Adamuz, and Gelida were a turning point in demanding that all actions be taken to ensure the safety of rail operations. The statement added that "those who are responsible for the safety of railway infrastructure" would be held criminally liable. UNION HAD WARNED ABOUT WEAR AND TEAR According to a copy seen by?by, SEMAF warned Adif last August about the severe wear and tear on the railway track, where the two crashes occurred. The letter said that potholes, bumps and imbalances of overhead power lines were causing frequent breakdowns. Puente said to reporters that "we do not (share) the view that a general strikes is the best way forward", adding that he will meet with unions. He said that the Adamuz incident was not caused by human error, but the cause of the technical failure has yet to be determined. It is also very complex. He said that small marks were found in the front bogies on some older trains and the derailed train, but it would be premature for him to directly link them to infrastructure defects. PRISING APART CARRIAGE Rescuers found another body at the Adamuz crash scene, bringing the total to 43. They were tearing apart the second carriage belonging to the state operator Renfe which housed its cafeteria. Overnight, cranes were used to remove the last carriage of the derailed private train Iryo. Puente stated that the time between derailment and collision was only nine seconds. This left no time for the trains to brake. Authorities previously stated that the gap between derailment and collision was 20 seconds. The recordings of phone calls between the Iryo driver and the Madrid control center suggest that he, along with passengers in the five front carriages, didn't realize there was a collision. After climbing down the train to inspect the damage, he called again to request ambulances. Adif announced on Wednesday that it had imposed a "further" speed limit along the Madrid-Barcelona route after a driver reported poor track conditions in a stretch of 78 kilometers. It had told drivers on Tuesday to slow down because it was concerned about the condition of the track. Adif's maintenance team had inspected the track overnight and identified four points in need of repair. Adif announced on Wednesday that trains travelling between Madrid, the capital of Spain, and Valencia in the east have been instructed to limit their speed along a 1.8 km stretch of line. On Wednesday, regional trains in Catalonia were suspended to allow for inspections of the tracks following recent storms. Renfe published a picture of its President Alvaro Fernandez Heredia riding a replacement bus as he returned to Madrid from Adamuz. Reporting by Corina Pounds, Emma Pinedo and Jesus Calero. Writing by Charlie Devereux. Editing by Andrei Khalip and Sharon Singleton.
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TSA reports that 6% of US travelers are not complying with ID requirements as a new $45 fee begins Feb 1
Senior Transportation Security Administration official said Wednesday that approximately?6% of U.S. airline passengers do not display IDs meeting stricter federal standards. The agency is preparing to charge $45 for passengers without enhanced identification to board flights starting February 1. The TSA will begin enforcing "REAL ID" standards in May 2025. Passengers without this new identification are given warnings and subjected to enhanced screening. TSA announced a new fee for passengers who do not have REAL IDs in December. They urged them to obtain the documents or pay the fee before they arrive at the airport. The $45 charge will cover travel within a 10-day time period. Ha Nguyen McNeil, TSA's Deputy Administrator, said that compliance had improved from 93% to 94% in the last year. She said that the Trump administration decided to 'raise the fee from $18 up to $45 following a re-evaluation of the costs associated with 'dealing with travellers without "REALID." About 2.5 million people fly daily in the United States. McNeil explained that the fee was set to cover the cost of processing passengers without valid ID, and to "ensure they don't pose a danger to our skies." If you don't pay in advance, it could take up to 30 minutes for you to pass through security. Children under the age of 18 are not required to show an ID at airport checkpoints. Most travelers use state-government-issued driver's licenses that meet the requirements but ?passports issued by any government are also acceptable, as are other forms of ID, including permanent resident cards, Department of ?Defense IDs and DHS trusted traveler cards. The Congress approved last year new federal standards that are?stricter for the issuing of identification cards, but enforcement has repeatedly been delayed. These IDs are also required to enter a federal building. The 2005 law implemented the recommendation of the 9/11 commission that the U.S. Government set standards for the issue of sources of ID, such as drivers licenses. The law establishes minimum security standards in the issuance of licenses and their production.
IndiGo, the Indian airline, warns that costs will increase after cancellations have hit profits.
IndiGo, India's largest airline, warned on Thursday of increased costs per passenger for the full year. It also said that it had taken a $63-million hit in the third quarter after one of India's worst aviation crises.
The airline's profit for the quarter fell 75%, to 6.13 billion rupees (66.9 millions dollars), due to an unplanned disruption that forced it to cancel thousands flights at the beginning of December.
On a call following earnings, Chief Financial officer?Gaurav Negi revealed that the country's biggest airline expects its unit costs (the average cost to fly an aircraft seat) to rise by a mid-single digit percentage for the year ending in March 2026. This is compared to an earlier projection which predicted no increase in costs.
IndiGo relies on damp-leased aircraft to meet demand. CFO Negi stated that several planes are still grounded due to Pratt & Whitney engines issues. This arrangement will increase costs.
IndiGo is responsible for the cabin crew, while the lessor provides the jet and the pilots.
Under Increasing Regulation Scrutiny
IndiGo faces a competition investigation and increased regulatory scrutiny. India's aviation regulator cut the carrier's capacity domestically by 10% during the winter schedule. It also warned its executives and fined the firm.
When asked if IndiGo's board discussed accountability with the CEO following the disruptions CEO Pieter Elbers replied, "The board is deliberating."
DUPRECIATING RUPEE IS DRIVING EXPENSES UP
IndiGo incurs over 60% of its costs in dollars. The depreciation of the local currency also drives up expenses.
IndiGo, the airline that controls nearly two-thirds of the aviation market in India, has seen its revenue increase by 6%. However, expenses have risen at a faster rate, increasing by 10%.
The airline's second largest expense, dollar-denominated aircraft leases, rose 19%.
The carrier incurred a charge of 14.67 billion rupees during the quarter. This included 5.77 billion for disruption costs, such as refunds to passengers and fines by the regulator. The rest of the charge is due to India's newly enacted labor code.
IndiGo expects that fourth-quarter seat-kilometre capacity will also grow by 10%. Unit revenues, however, are expected to fall by a "early to mid" single-digit percentage.
(source: Reuters)