Southwest Airlines Merger Speculation Grows, and More

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Southwest Airlines Merger Buzz Ignited by Union Poll Favoring JetBlue, Spirit and Breeze Airways

Speculation about Southwest Airlines potentially acquiring another carrier has intensified following a social media poll by flight attendants' union board member Chris Click on February 13, 2025.

The poll, conducted after an executive board meeting, showed JetBlue leading as the favored acquisition target, with Spirit and Breeze Airways also emerging as a strong contender.

This development follows months of merger discussion speculations and the airline's pilot union seeking legal counsel last year in preparation for a possible deal.

However, Southwest has made no official confirmation of any merger plans as of now.

Key Points

• Southwest board member Chris Click plans to share details about "important initiatives" during a fireside chat on February 18, further fueling acquisition speculation

• 46% of respondents picked JetBlue, while Click advocated for Breeze Airways

• Southwest has a history of absorbing smaller rivals like Morris Air (1990s) and AirTran (2011)

• Historical ties exist between Southwest and potential target Breeze Airways, as Breeze's founder David Neeleman previously sold Morris Air to Southwest

• The airline's pilot union proactively sought legal advice in 2024 regarding potential merger implications

• JetBlue’s consistent Spirit bid and Alaska’s Hawaiian Airlines acquisition highlight that there's an appetite for sector consolidation.

What It Means

As of now, there's no official confirmation from Southwest. Also, Southwest’s focus on modernizing operations and appeasing Elliott Capital might clash with the complexity of integrating JetBlue, Spirit, or Breeze.

But never say never. Southwest is under a lot of pressure to evolve beyond its traditional model. And it could make some unexpected move.

And there are some strategic angles. For example, Breeze’s Airbus A220s could address Southwest’s fleet shortages (but complicate Southwest's all-Boeing fleet strategy).

We might know more tomorrow.

Other Key Aviation and Aerospace Industry Updates for Today 👇

2. Musk's SpaceX Team Heads to FAA Command Center Today for Aviation System Overhaul

SpaceX engineers are visiting the FAA's Air Traffic Control Command Center in Virginia today to assess and modernize the nation's aviation system.

Transportation Secretary Sean Duffy announced this visit follows January's fatal collision near Reagan Airport that killed 67 people.

The visit comes amid staffing shortages, with the FAA currently short 3,500 controllers.

While some question potential conflicts given SpaceX's past tensions with the FAA, Musk maintains air safety is "non-partisan".

3. Qantas Boosts Regional Capacity with Q400 Fleet Upgrade

Qantas today launched larger 74-seat Q400 turboprop aircraft on all Adelaide regional routes, replacing smaller 50-seat Q300s.

The upgrade serves Port Lincoln, Whyalla, Mount Gambier, and Kangaroo Island, marking the Q400's return to Adelaide after 10 years.

As part of a broader fleet modernization with 14 new Q400s, three will be based in South Australia.

The airline also plans to introduce eight new regional wines in March, with six from South Australian wineries.

4. British Airways Takes Over Boeing Hangar for Gatwick Operations

British Airways announced today it will acquire Boeing's maintenance facility at London Gatwick Airport, forming a new subsidiary called British Airways Engineering Gatwick.

The facility includes 160,000 sq ft of hangar space for aircraft maintenance.

The deal transfers Boeing's current workforce to BA and enables in-house maintenance of Boeing 777s and Airbus A320/321s.

The acquisition, expected to complete in Q2 2025, joins BA's existing engineering network in Cardiff and Glasgow.

5. Western Aviation Giants Shift Focus to India to Fill Critical Gaps in Aerospace Supply Chain

Major aerospace companies like Airbus, Collins, and Rolls-Royce are increasingly turning to Indian suppliers amid global supply chain challenges.

Bengaluru-based firms Hical Technologies and JJG Aero have seen substantial growth, with JJG's revenue jumping from $2M to $20M in six years.

The Asia-Pacific aerospace sector's revenue is now 54% above 2019 levels, while North America and Europe remain below pre-pandemic numbers.

Indian suppliers are producing critical components for landing gear, wings, and flight control systems.

6. New UAE Engine Maker Enters Global Aircraft Engine Manufacturing Arena

UAE's Edge Group has launched Powertech, a new aero engine manufacturer targeting both civil and defense markets.

Powertech will develop engines up to 35,000 lb. thrust, focusing on UAVs and autonomous systems.

The initiative supports UAE's industrial strategy and includes the P145I six-cylinder engine as its first project.

Edge aims to build local manufacturing capabilities while eyeing international markets.

7. Lufthansa Group Extends Status Points to ITA Airways Flights

Miles & More members can now earn status points on ITA Airways flights, following its integration into Lufthansa Group.

Points earned match the system used by other Lufthansa airlines. A welcome promotion offers up to 6,000 bonus miles for flights between March 1-April 15.

ITA Airways will leave SkyTeam by April 30 and join Star Alliance by mid-2026.

Starting March 30, passengers gain access to 130 lounges and 100+ codeshare routes.

8. Virgin Australia Opens 16 Routes to Air India Passengers

Air India and Virgin Australia entered into a codeshare partnership, giving Air India passengers access to 16 destinations across Australia and New Zealand from Delhi flights to Sydney and Melbourne.

Starting February 18, travelers can fly single-ticket journeys with through-checked baggage to cities including Brisbane, Perth, and Queenstown.

Air India operates 14 weekly Boeing 787 flights from Delhi, featuring 18 flat-bed Business and 238 Economy seats.

9. Russian Fifth-Generation Su-57 Fighters Secure First Foreign Buyer

Algeria has become the first foreign buyer of Russia's Su-57 stealth fighter, with deliveries starting this year. Algerian pilots are currently training in Russia.

The deal follows Rosoboronexport's November announcement of the first export contract.

The Su-57, capable of Mach 2 speeds and featuring advanced stealth technology, will significantly upgrade Algeria's air force.

While cost details remain private, earlier reports suggested 14 jets for approximately $2 billion.

10. All-Stock Deal Unites Two Major Charter Operators

flyExclusive has agreed to acquire Jet.AI's aviation business in an all-stock deal worth $12-22 million.

Jet.AI will spin off its aviation segment into "SpinCo" before the acquisition, while retaining its AI solutions business.

The deal gives Jet.AI shareholders new Class A common shares in flyExclusive.

Supported by a $50 million term sheet from Hexstone Capital, the transaction is set to close in Q2 2025, helping flyExclusive expand its fleet and market presence.