Posted on 11/18/2024 9:34:39 AM PST by SeekAndFind
While the word "bankruptcy" brings to mind images of shuttered gates and liquidation (and that is indeed what happened to a number of low-cost airlines this year), filing for Chapter 11 protection is actually a way to keep the company going and reorganize finances amid rising debt.
For example, Scandinavian Airlines, the Copenhagen-based airline commonly known as SAS, filed for bankruptcy in February 2022 amid a drop in traveler numbers during the pandemic.
However, it was able to officially emerge from it after ownership was redivided ownership between several local investment firms, the Danish government, and Air France-KLM AFRAF.
The Florida-based airline has accumulated over $3.8 billion in debt while plans for another acquisition by fellow low-cost airline Frontier Airlines (ULCC) also fell through.
"Spirit has entered into an agreement with our bondholders that is expected to reduce our total debt, provide increased financial flexibility, position Spirit for long-term success and accelerate investments providing Guests with enhanced travel experiences and greater value," the company wrote in a letter to customers and shareholders. "Part of this financial restructuring includes filing a 'prearranged' chapter 11."
The filing includes securing an additional $300 million in additional financing; the airline will continue running flights according to its usual schedule and plans to re-emerge from bankruptcy by the first quarter of 2025 (a plan that sounds extremely ambitious given that emerging from bankruptcy can take years )
(Excerpt) Read more at yahoo.com ...
"The most important thing to know is that you can continue to book and fly now and in the future," Spirit wrote in a reassurance to passengers. "We also want to assure you can use all tickets, credits and loyalty points as normal."
I tried to book a Spirit flight two weeks ago. The site kept thowing an error and the tried to make me try again at a much higher price. I didn’t know if it was incompetence or a bait-and-switch but I gave up.
Merrick Garfinkel filed a lawsuit blocking the merger of JetBlue and Spirit
I will never fly Spirit again.
But I would like for it to continue to exist, for selfish reasons.
My wife and i went to Vegas for a week in June. I looked into Spirit. After junk fees and a plane change in Dallas, it was more expensive than a direct delta flight.
Crash and burn, Spirit.
“Spirit Airlines - we’re not to blame for the bullet holes!” It’s all about the marketing.
Were they from the inside or outside?............ 🙄
“I didn’t know if it was incompetence or a bait-and-switch but I gave up.”
You got lucky, it is a trash airline that attracts a cesspool of bottom feeding flyers. Not in any way worth the small savings you might get.
Spirit’s planes don’t need to be grounded by bankruptcy. They are grounded for a million other reasons every day. Its the worst airline ever.
Frontier Airlines gets my vote for the worst US carrier.
YOU can fly on it if you want.
If I’m going to be treated like livestock anyway I try to do it on a direct flight as cheaply as possible.
(you can still fly on it)
Never have, never will.
Does it cost more to sit in the non-fighting section?
Marko
Hey! We are bankrupt. Don’t worry about fixing the engine and wing on that airplane. May the LORD be with them!
LOL!
Since Biden, the left is now opposed to just about any merger regardless of the consequences.
Merrick Garland is the MOST USELESS POS I can not wait until I never have to hear his name again!!!
There is a free upgrade in the fighting section, if you wear boxing gloves! ;-)
DEI hires have doomed Spirit. SWA has been on a steroid plus hiring of DEI hires and subsequently service and quality has plummetted.
can Frontier be far behind? They are the absolute worst!
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