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Spirit Airlines will shrink its fleet to a third of the size it was before bankruptcy
Spirit Aviation Holdings, the parent of Spirit Airlines, announced on Friday that it planned to "shrink" its fleet by about one-third, according to court documents. After filing for bankruptcy two times in a single year, the?low-cost airline, which has been selling aircraft and contacting potential buyers, is pursuing a major restructuring to cut costs and stabilize its finances. Spirit Airlines entered Chapter 11 protection with 214 aircraft in August of last year. In October, they cut about 100 aircraft through lease refusals and retirements. A bankruptcy judge in the United States approved Spirit's request earlier this week to "launch an auction for approximately 20 additional aircraft from the 114 that the airline currently operates." The announcement on Friday furthers its fleet-cutting plan. In a press release, Dave Davis, the president and CEO of Spirit, said, "We are pleased to have achieved another milestone, which reflects our lenders' and noteholders' confidence in our future. Our plan will better position Spirit to continue delivering value to American customers." Spirit announced on Friday that it plans to reduce its fleet by 76-80 aircraft, mostly Airbus A320 or A321ceo jets. Spirit's debt obligations and lease obligations are expected to drop to $2 billion, down from $7.4 before the filing. On Wednesday, the carrier said that fuel price volatility linked to war with Iran had complicated negotiations for its exit from Chapter 11 The airline filed with the U.S. Bankruptcy Court of the Southern District of New York a restructuring agreement and a proposed plan of reorganization. The U.S. Bankruptcy Court Judge Sean Lane approved Spirit's bid-procedure on Wednesday. CSDS Asset Management will be a "stalking horse" bidder. A floor price of $530 million has been set, and other potential buyers can submit higher offers until April 20. Marshall Huebner, Spirit's attorney, of Davis Polk & Wardwell said during the hearing that negotiations took longer than expected, in part, because fuel costs - a major expense to airlines -?have been harder to forecast due to geopolitical uncertainties linked to the Iran War. This volatility, said Huebner, has led creditors to question Spirit's cash-flow and liquidity assumptions. Judge Lane stated that these concerns are?understandable', pointing out that airlines are especially vulnerable to fluctuations in fuel prices caused by global events. Lane stated that "global uncertainty?regarding the fuel price is a reality for any airline." Spirit will confirm a Chapter 11 bankruptcy by the end May or possibly June, Huebner stated. The airline stated that it will focus on its best routes and markets including Fort Lauderdale, Orlando, Detroit, and the New York City Area. Spirit said that it also expects to increase its aircraft fleet between 2027 and 3030, based on profitable growth opportunities. It plans to expand the Spirit First and Premium Economy product lines, as well as continue to roll out premium economy seats across its entire fleet. (Reporting and editing by Parth Chandna, Sahal Muhammed, and Alistair Bell).
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Chemical smell causes DC airports to stop flights
The U.S. Federal Aviation Administration announced that it halted?traffic? at the?three main Washington-area airports, on Friday. Air traffic controllers in a Virginia facility were forced to stop work due to a?strong chemical smell. The FAA stated that the problem 'disrupted the operations at Potomac Consolidated Terminal Radar Approach Control, which controls the airspace of numerous airports within the Washington -region. This forced the 'agency to stop traffic at Reagan Washington National Airport Washington Dulles International Airport, and Baltimore-Washington International Airport. Airlines informed the FAA that they were relocating Potomac Controllers to a training facility, and some planes would be diverted 'because of congestion. As the ground'stops' are lifted, controllers will have a?reduced? radar scope. This means that there are more delays. FlightAware, an online flight tracking site, reported that about 30% of flights were delayed at Reagan. (Reporting and editing by Scott Malone, Rosalba o'Brien and Scott Malone in Washington.
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Early findings indicate that the US-owned tanker near Iraq was attacked by unmanned vessels
Two explosive-laden unmanned boats rammed a Safesea 'Vishnu' tanker in an Iraqi port on Wednesday. The explosion engulfed vessel's portside in flames, and the crew had only seconds to respond, according to a preliminary assessment by the vessel’s U.S. operator and owner. The?Safesea Group, based in New Jersey, said that after speaking with the crew members who survived the attack, it appeared to be deliberate and calculated. At least 16 vessels, including tankers and other vessels, have been attacked in the?Gulf as a result of the U.S./Israeli war against Iran. The threat by Tehran to attack vessels in or near the Strait of Hormuz - which transports roughly one fifth of the world's crude oil - has led to hundreds of ships dropping anchor. Safesea Vishnu, a Marshall Islands flagged vessel, was anchored in the Iraqi port Khor Al Zubair at the time of the attack and engaged in ship to ship loading of 53,000 metric tons of naphtha. Without time to deploy the lifeboats, the vessel's 28 members of crew jumped into water to escape from the burning vessel. Safesea reported that one crew member died, but the other 27 are still alive and are receiving help from the Embassy of India. Safesea said that the tanker was reported to be 'listing in the water. A salvage team has now been dispatched to stabilize the ship and ensure the safety of the marine environment. Safesea stated that the attack should serve as a warning to governments, maritime authorities and the international community. It said that "Commercial shipping lanes cannot be turned into battle zones." Zefyros, a ship flying the Malta flag, was the second vessel?involved with the transfer. The manager of the ship's Greece-based base said that a projectile hit this vessel during Wednesday night's assault. The Zefyros' 23 crew members were all safely evacuated. According to the World Shipping Council, 20,000 seafarers on vessels operating in this region are facing "a dangerous and highly uncertain security situation." Donald Trump, the U.S. president, has stated that the United States will escort oil tankers through the Strait of Hormuz if necessary. However, the U.S. Navy, which is in charge of military escorts, has refused to do so almost daily since the beginning of the war against Iran. They say the risks of attack are too high. (Reporting and editing by David Gaffen; Lisa Baertlein)
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Refiner MOL files complaint with EU regarding Croatian pipeline charges
Hungarian refiner MOL announced on Friday that it and its subsidiary Slovnaft filed a complaint to the European Commission over a Croatian pipeline operator JANAF's price policy. This follows a complaint MOL made last week to the EU's Competition Watchdog about JANAF refusing to deliver Russian crude oil to MOL and its Slovak subsidiary. A January outage on the Druzhba oil pipeline that delivers Russian oil via Ukraine left Hungary and Slovakia, which are landlocked countries, reliant on JANAF for oil supplies. MOL's latest complaint stated that "JANAF consistently applied abusive pricing practices" and added that its orders had increased one-and-a-half times by volume, while JANAF fees had almost doubled. The fee increases that JANAF imposes are excessive in comparison to the costs of its operations and cannot objectively be justified. Janaf didn't immediately respond to a comment request. Hungary and Slovakia are exempt from EU restrictions on Russian crude imports. MOL can source 'Russian seaborne oil' if the Druzhba pipeline is not operational, according to the company. Croatia has expressed its willingness to?supply?crude, but has balked at sending Russian oil via JANAF's pipe. (Reporting and writing by Anita Komuves, Anna WlodarczakSemczuk and Jason Neely).
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Peru launches natural gas distribution and aims to normalize by Saturday
Government officials announced on Friday that the?energy distribution in Peru is expected to return to normality on Saturday, as a major gas transport company resumes its operations. The rupture of the Transportadora de Gas del Peru pipeline (TGP) triggered the worst?energy crisis of the past two decades. This was at the same time that oil prices were surging due to the U.S. and Israeli war against Iran, which effectively closed the Strait of Hormuz shipping lane. Jose Balcazar, the President of TGP, said at a press briefing that TGP had restarted gas supplies that morning. Denisse Miralles, the Economy Minister, said that distribution would normalize on Saturday. This is ahead of schedule. In a separate presentation on monetary policy for journalists, central bank economist Adrian Armas stated that shortages affect everything from factories to electricity utilities. He said: "We've had an unfortunate coincidence, where the rise of the international oil price coincided with a serious shock." There's never been a gas supply disruption of this magnitude before. Armas stated that the impacts could continue until the end of the month. The priority, he said, was to meet the internal demand. He predicted that there would be a slight impact on inflation in March. The central bank said on Thursday that inflation will edge towards the upper limit of its target range?of 1% to 3.0% but remain within established guidelines. Armas estimates that the gross domestic product grew by around 3.5% in January compared to the same month last year. Peru's Statistics Office is set to release the monthly GDP figures on Sunday. Reporting by Marco Aquino from Lima, and Sarah Morland from Mexico City. Editing by Natalia Siniawski & Daina Beth Solow.
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Panama minister hopes China's COSCO resumes operations at Balboa Port
Jose Ramon Icaza said that the Panamanian government hopes China's COSCO Shipping will reconsider their decision to not 'use the Balboa port at the 'entrance' of the Panama Canal. La Prensa, a local newspaper in the area, published an announcement from COSCO to its clients that it had suspended operations at Balboa. COSCO didn't?respond to an earlier request for comments about the suspension of operations. Icaza, a reporter at an event, said that COSCO is responsible for a mere 4% of the cargo that passes through Balboa. "All cargo is valuable, but COSCO's is particularly important to us and Panama. We hope they reconsider their decision not use the port of Balboa." Balboa, one of two ports in the middle of a saga that has lasted for a year and involved Washington, Beijing, and the 'Panamanian Government. The?move comes after a ruling from Panama's Supreme Court late in January, which?annulled a contract for the?port operated by a Hong Kong-based unit. APM Terminals - a Maersk unit - has recently started temporarily operating the port for up to 18 months.
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Sources say that Iran has allowed two gas tankers to sail through Hormuz to India.
Four?sources who have direct knowledge of this matter confirmed that Iran allowed two Indian-flagged LNG carriers to pass through the Strait of Hormuz. This is a rare exception from the Iranian blockade? that has disrupted the global energy supply. Two sources confirmed that the?Indian flagged LPG tanker Shivalik had crossed the Strait with?escort? from the Indian Navy. The second vessel, Nanda Devi, is expected to be cleared in the next few minutes. Since the United States launched an air campaign against Iran, Tehran has stopped traffic in the Strait of Hormuz, which runs along its coast. It supplies 20% of the world's oil and seaborne liquid natural gas. India has asked for exemptions. Narendra Modi, Prime Minister of India, said that he spoke to Iran's president Masoud Pezeshkian on Thursday and they discussed the transit of goods?and energy out the Gulf. India also granted safe harbour to 183 Iranians from a ship that docked in India after the outbreak of war. The vessel was one of three that participated in exercises in India. One of the other vessels was sunk off Sri Lanka by a U.S. Torpedo. India is experiencing its worst gas shortage in decades. The government has cut off supplies to industries so as to protect households from any shortages of cooking gas. Shivalik and Nanda Devi belong to the state-owned Shipping Corp of India. According to tracking data from MarineTraffic, Shivalik had entered Qatari waters in February 25. It last reported its location on March 12, indicating that it was within the exclusive zone waters up 24 miles away from the United Arab Emirates. MarineTraffic data shows that Nanda Dev was last spotted on Friday, in Iranian waters near the Strait of Hormuz. The data revealed that it had stopped at Qatar's Ras Laffan Anchorage on February 27, before sailing into UAE waters. According to data and two sources, an oil?tanker carrying Saudi Arabian crude is expected to arrive in India this Saturday after passing through the Strait on March 1. The Liberia-flagged Smyrni crude tanker with a capacity of up to 1 million barrels is expected at a port in India for the state refiner Hindustan Petroleum Corp. After business hours, emails sent to India's Foreign Ministry, Navy, Shipping Corp, and HPCL were not responded to. India imported about 60% of the cooking gas it consumed last year. Around 90% of these imports were from the Middle East. India reported on Thursday that 24 Indian-flagged ships were stuck in Gulf past the narrow strait. (Reporting and editing by Ros Russell, Nidhi verma, Jonathan Saul)
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France continues to push forward with its Hormuz plans, but there are no secret Iran discussions, according to sources
Two French officials stated on Friday that France will continue to 'efforts to put a coalition together to secure the Strait of Hormuz once the security situation stabilizes, after a reported stating that 'Paris is negotiating safe passage for its ships. European countries have been largely ignored 'as?the U.S. and Israel war against Iran escalated. Iran carried out attacks against Israel, U.S. base, and Gulf state. The European powers are trying their best to protect themselves, but the shipping lanes have been affected by the conflict and oil prices have risen. In the last week, France has held consultations with European, Asian and Gulf Arab countries in order to develop a plan that will eventually see warships escorting tankers across the Strait. One official said: "In the present context, the conditions do not allow any mission to deploy forces. But we are first working on the diplomatic side so that we can enter into detail and eventually make it operational." The Financial Times reported France and Italy wanted to negotiate an agreement to ensure safe passage of their ships through this strait. The French 'presidency' did not reply to a comment request. A source in the Italian foreign ministry denied this report. Source: "In their diplomatic contacts, Italian leaders are trying to favor conditions that will lead to a general de-escalation of military tensions, but there's no secret negotiation meant to preserve only some merchant vessels at the expense others," said the source. Contacts with Iran Aspides is the main naval activity of the European Union in this region. It was launched in 2024 as a Red Sea mission to protect vessels from attacks by Iran-aligned Houthis. Emmanuel Macron, President of France, has stated that France will provide two warships to this mission. He said that France would deploy its aircraft carrier strike team, two helicopter carriers, and eight warships to the area. Macron stated this week that the Strait of Hormuz could be included in a future plan to help commercial vessels. France has maintained both direct and indirect contact with Iran. The presidents and the foreign ministers spoke and Paris kept its Tehran Embassy open. Unofficially, a French official stated that the focus was on the coalition and not on ensuring safe passage of French ships. Two diplomatic sources stated that there have been talks with several?European countries, India, Gulf Arab States, Canada, and others but nothing has been finalised. India is showing some resistance. A European diplomat said, "The French want to distance themselves from the American approach? because at the end of the day you'll need?to get a minimum approval?from Iran." The diplomat explained that the idea wasn't to force it, as some American officials had suggested. Reporting by John Irish from Paris, Chandni in Bengaluru, and Angelo Amante at Rome; Writing by John Irish with editing by Toby Chopra
Sable Offshore is directed by the Trump administration to restore Santa Ynez Oil Unit
The 'U.S. Department of Energy said that the Trump administration directed 'Sable Offshore on Friday to restore oil drilling activities off the southern California coast. Energy Department ?said.
The move is aimed at restarting oil production on a cluster offshore platforms, as fuel prices are continuing to rise following the war against Iran. The President Donald Trump signed an executive directive on Friday to allow the Secretary of Energy to take action under the Defense Production Act.
U.S. Secretary of Energy Chris Wright has instructed Sable to resume work on the 'Santa Ynez Unit and Santa Ynez Pipeline "to address the supply disruption risks that are caused by California policies which have left the region and U.S. Military Forces dependent?on?foreign oil", the Energy -Department stated in a press release.
Sable Offshore didn't immediately respond to our request for a comment.
Santa Ynez and the Santa Ynez Pipeline System have been a source of controversy in California. Santa Ynez's offshore platforms were closed in?2015 due to an oil spill. However, the company has now restarted production on one of these platforms.
Last year, a state judge ruled against the Houston-based company’s request to lift a cease and desist on repairs that it had made on an onshore pipe system.
In 'January, the California Attorney General announced that the state was suing Trump for asserting federal power over two pipelines in the state and allowing?Sable?to restart oil pumping through them.
The Energy Department stated that?Sable’s facility could produce around 50,000 barrels per day. Reporting by Ismail Shakil; Writing by Christian Martinez, Editing by Chris Reese and Sergio Non, Diane Craft
(source: Reuters)