Continued from page 48


current pace of depletion is not sustainable.” This is the reason no one can


issue a categorical assurance of the availability of jet fuel beyond about six weeks. Lufthansa chief Carsten


Spohr made plain last week: “We don’t see any bottleneck in supplies through June. However, we are preparing for alternative scenarios. Beyond six weeks we can’t really plan.” The government’s relaxation


of slot rules at major airports, “to allow airlines to consolidate schedules”, will help. So will relaxing restrictions on the use of Jet A fuel, mostly used in the US where it is produced, as a substitute for the Jet A-1 fuel used in Europe – much of it imported from the Gulf. The difference lies in Jet A’s higher freezing point, which Spohr points out “is not an issue in the summer”. Iata made the case for this


substitution last week, and Spohr urged the EU to follow the UK’s lead on slots. He argued: “We need the slot


rules suspended. The UK took a step in this direction. We hope the EU will follow.” Spohr also called for the


certification of Jet A and urged the suspension of ‘anti-tankering’ rules to allow aircraft to carry fuel for both legs of a return flight. The EC has so far rejected


calls to relax slot rules other than on “a case-by-case basis” in the event of cancellations due to airport fuel shortages. We must hope EU transport


commissioner Apostolos Tzitzikostas was right to insist last week that Europe “can sustain jet fuel supplies for a


long period”. i Jet fuel supplies, page 47


Spirit creditors opted to reject federal cash loan


Ian Taylor


US carrier Spirit Airlines abruptly ceased flying last week after major creditors rejected a federal government proposal to inject up to $500 million. Spirit, which at one time seemed


destined to merge with JetBlue, went into bankruptcy protection at the end of last August having only emerged from Chapter 11 protection five months earlier in March 2025. The budget carrier announced


“an orderly wind-down” of operations “effective immediately” on May 2 after creditors failed to agree a bailout, despite the Trump administration confirming it was considering investing $500 million to help Spirit restructure its debt. The carrier said the increased cost


of jet fuel had left it with “no way out” of bankruptcy and announced: “All flights have been cancelled. Customer service is no longer available.”


before the hike in fuel prices driven by the war on Iran. A representative of one creditor


was quoted as saying: “You can’t breathe life into a corpse.” Spirit Airlines chief executive


Spirit Airlines had 10,000 staff Rescue talks collapsed after


the airline’s bondholders balked at having repayment of the proposed government loan take precedence over payment of the $3 billion in debt owed to them. Holders of a $275 million


revolving credit facility and a committee of unsecured creditors with claims running into billions of dollars had been willing to sign off on the rescue deal. But the bondholders – primarily investment funds – opted for the carrier’s liquidation rather than another restructuring, noting Spirit’s losses were piling up even


Dave Davis, who took over in April last year, explained the return to Chapter 11 last August so soon after emerging from bankruptcy protection by saying: “It has become clear there is much more work to be done.” The carrier first entered Chapter


11 protection in November 2022 to restructure $7 billion in debt while awaiting sign-off on a $3.8 billion takeover by JetBlue, although Spirit’s board had favoured a counter bid by US rival Frontier Airlines. The JetBlue deal would have


created the fifth-largest carrier in the US, but regulators filed an anti-trust lawsuit against the takeover on competition grounds and a federal judge blocked the deal in January 2024, leading JetBlue to terminate the deal.


Amex GBT set for $6.3bn takeover by Long Lake


American Express Global Business Travel, the world’s largest travel management company, is to be acquired by US investment management group Long Lake Capital Management. Amex GBT owner Global


Business Travel Group announced it had agreed a $6.3 billion takeover by Long Lake, supported by


46 14 MAY 2026


investment fund General Catalyst and asset manager Alpha Wave, last week. The acquirers have significant investments in AI companies including Anthropic and Open AI. Major shareholders in Amex


GBT, including American Express, Expedia, the Qatar Investment Authority and asset management giant BlackRock, have backed the takeover which will see the company delist from the New York Stock Exchange. Amex GBT chief executive Paul Abbott described the takeover as “a compelling outcome for shareholders”. Long Lake co-founder and chief


Paul Abbott


executive Alex Taubman said: “The future of business travel will be defined by AI and human agents working seamlessly together”. Amex reported the transaction is


expected to close in the second half of 2026, subject to regulatory approval.


travelweekly.co.uk


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