Spirit Airlines preparing to file for bankruptcy: Report

Nov 14, 2024

Craig Nigrelli Reporter

By Craig Nigrelli (Reporter), Brock Koller (Senior Producer), Jack Henry (Video Editor)

Spirit Airlines is preparing to file for bankruptcy, according to a report from The Wall Street Journal. The low-cost airliner has been dealing with mounting losses and debt.

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Spirit 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 supposedly in talks with bondholders to come up with a bankruptcy plan that would be satisfactory for creditors.

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Spirit’s bankruptcy filing could happen in the next few weeks, according to the WSJ report. That report also said Spirit representatives had been in talks with management of Frontier Airlines about a possible merger. However, Frontier backed out of negotiations.

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 DOJ claimed such a merger would cause travelers to have fewer choices and pay higher prices. A federal judge agreed and the merger was stopped.

Spirit was once a fast growing, no-frills airline in which customers bought a spot on a flight then paid piecemeal for everything else, such as a seat assignment and checked baggage. However, those surcharges became typical in the airline industry and Spirit is now struggling amidst lots of competition.

Tags: Bankruptcy, Frontier airlines, Jet Blue, Spirit, Wall Street Journal

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

Spirit Airlines preparing to file for bankruptcy: Report

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