or so I hear.
Hope that doesn't affect anybody here...
Posted by
Freedonia
16937 posts
Ugh...not exactly.
Spirit has filed for Chapter 11 bankruptcy protection. That allows the airline to continue operating while restructuring its debt. It's estimated that will take until early 2025.
Posted by
Colorado Mountains, USA
8167 posts
I saw a few hours ago that they’d filed for bankruptcy.
Spirit has been a favorite target of U.S. late-night TV comic Stephen Colbert for a long time. If they’re not around in the future, he’ll have his hands (and more) full with material from D.C.
I wonder whether the bankruptcy is related to the gunfire incident in Haiti on one of their planes from a few days ago?
Posted by
Houston, Texas
1052 posts
I wonder whether the bankruptcy is related to the gunfire incident in Haiti on one of their planes from a few days ago?
Too much debt maturing in the couple of years along with a lot more competition from the legacy carriers.
Posted by
USA
145 posts
Airlines filing chapter 11 bankruptcy was so common in USA not long ago.
That should not affect current ticket holders.
In any case, one usually buys spirit or frontier or JetBlue ticket for the price point with eyes wide open about potential misery.
Chapter 11 bankruptcy filing in USA is nothing but punishing lender for stupid underwriting decisions
Incoming President has used it many times (rather proudly)
Posted by
Edmonds, WA 🌨 ☂
12335 posts
Faced with mounting losses and looming debt payments, Spirit furloughed hundreds of pilots and offered salaried workers buyouts. It also sold some of its Airbus fleet and cut routes. Ultimately, it filed for bankruptcy protection on Nov. 18.
Spirit Airlines says it will continue to operate as normal as it works through bankruptcy, a process it said it expects to exit in the first quarter of 2025. Analysts expect the airline to come out of the process a smaller airline with fewer routes.
https://www.cnbc.com/2025/01/05/spirit-airlines-what-went-wrong.html
I wonder how much notice ticket holders will get that their flight is on a cancelled route; how torturous will the refund process be?
Posted by
USA
145 posts
Chapter 11 filing is not true bankruptcy.
But if airline cancel the flight, law is pretty clear, you will get refund
Getting money back is not difficult, just contact your credit card company You will get immediate credit while they investigate.
Chapter 11 is more about restructuring debt with lenders taking some haircut
It is in best interest of airline to run operations as smooth as possible to make restructuring look viable to the lenders