Spirit Airlines preparing to file for bankruptcy: Report

SPIRIT AIRLINES IS PREPARING TO FILE FOR BANKRUPTCY.
THE LOW-COST AIRLINER HAS BEEN DEALING WITH MOUNTING LOSSES AND DEBT.
SPIRIT HAS ALREADY FURLOUGHED PILOTS AND UNVEILED PLANS TO BEGIN SELLING CLOSE TO TWO DOZEN PLANES. IN ADDITION, SPIRIT IS EXPECTED TO CUT JOBS AS PART OF AN EFFORT TO SAVE TENS OF MILLIONS OF DOLLARS.
THE FLORIDA-BASED DISCOUNT AIRLINE IS NOW SUPPOSEDLY IN TALKS WITH BONDHOLDERS TO COME UP WITH A BANKRUPTCY PLAN THAT WOULD BE SATISFACTORY FOR CREDITORS.
THE WALL STREET JOURNAL IS REPORTING SUCH AS A FILING COULD HAPPEN IN THE NEXT FEW WEEKS.
SPIRIT REPS HAD BEEN IN TALKS WITH EXECUTIVES FROM FRONTIER AIRLINES ABOUT A POSSIBLE MERGER BUT APPARENTLY FRONTIER WAS NOT INTERESTED AT THIS TIME.
PLANS TO MERGE WITH JETBLUE, IN A DEAL WORTH ALMOST $4-BILLION, FAILED EARLIER THIS YEAR AFTER THE JUSTICE DEPARTMENT WENT TO COURT, TO BLOCK IT. THE D-O-J CLAIMED SUCH A MERGER WOULD CAUSE TRAVELERS TO HAVE FEWER CHOICES AND PAY HIGHER PRICES. A FEDERAL JUDGE AGREED AND THE MERGER WAS OFF.
SPIRIT WAS ONCE A FAST-GROWING NO-FRILLS AIRLINE WHERE CUSTOMERS PAID FOR A SEAT ON A FLIGHT AND PRETTY MUCH EVERYTHING ELSE HAD A COST ATTACHED TO IT. IN FACT, OTHER AIRLINES BEGAN USING THAT TYPE OF PRICING.
SOME OF WHAT SPIRIT HAD BEEN DOING FOR YEARS, SUCH AS CHARGING FOR CHECKED LUGGAGE, AS WELL AS SEAT ASSIGNMENTS, WORKED AT FIRST. BUT THOSE SURCHARGES BECAME COMMON IN THE AIRLINE INDUSTRY AS DID MORE COMPETITION AND SPIRIT IS NOW STRUGGLING. FOR MORE UNBIASED UPDATES DOWNLOAD THE STRAIGHT ARROW NEWS AP