Is it time to let Spirit Airlines go?
Although President Trump on Tuesday morning mused that the federal government could get involved in a Spirit Airlines bailout I did not take this seriously. It would be clearly illegal though that on its own might not prevent the effort. Simply put, people take the President too literally in his musings.
Secretary of Transportation Sean Duffy has said that ‘the President would decide’ in the context of airline mergers, but he also pointed out just how dumb a federal government takeover of Spirit Airlines would be.
Duffy said it appears no one wants to buy Spirit and it is not clear how Spirit’s customer base feels about the airline. “What would someone buy?” Duffy asked. “If no one else wants to buy them, why would we buy them?”
…”By the way if you do do Spirit, who comes next? Who is the third?”
Frontier Airlines did make a play for Spirit, but Spirit felt the price wasn’t high enough and a deal did not get done.
The problem for Spirit is that they really have very little of actual value for an investor or acquirer.
- They still may own about 48 of their planes and 18 spare engines, but they’ve borrowed against those.
- 22 New York LaGuardia slots and 6 gates in the Marine Air Terminal.
- 16 peak Newark runway timings, however “schedule approvals are not transferrable like slots” so value is ambiguous without buying the whole airline.
Those once famous Banana-Yellow #SpiritAirlines Airbus aircraft now are starting to pile up at #VCV with the airline facing many many problem's . These airframes fate is currently unknown… #AvGeek 04-21-26 pic.twitter.com/ikjwvwFIHv
— Matt Hartman (@ShorealoneFilms) April 22, 2026
Buying Spirit Airlines would be of greatest benefit to a new airline startup because the most valuable other asset that it has is an Air Operator’s Certificate. It would take a new airline probably 2-3 years and tens of millions or dollars (or longer, and more) to gain FAA approval.
You need to show competent personnel (‘the five wise men’) plus adequate facilities, equipment, and spares. That’s a management team, manuals, training, conformity, proving runs, maintenance program, dispatch and operational control, systems, facilities, insurance, and working capital. The Five Wise Men are:
- Director of Safety
- Director of Operations
- Chief Pilot
- Director of Maintenance
- Chief Inspector
There are almost no new part 121 commercial airline startups. And those that do start usually buy the bones of an existing one. Xtra Airways preserved a single Boeing 737-400 to retain its Part 121 certification, and sold to startup Avelo Airlines. But Xtra Airways – a private transaction with undisclosed purchase price – likely didn’t cost tens of millions. Breeze began certification as a new airline, raised $100 million, and actually then bought the certificate from Compass.
A brand new Airbus operator would value Spirit’s manuals, operational leadership, and regulatory approval. But that’s really it. A new operator would also rid itself of the Spirit Airlines name and brand – it’s toxic! They don’t need Spirit’s 7,500 employees or South Florida corporate campus.
Investors put money into a Spirit Airlines first bankruptcy and are being wiped out. It wasn’t ever clear how they’d get their money back when the carrier’s exit plan didn’t really make meaningful changes to its business. That was before current oil prices.
I actually love that Spirit Airlines exists. (1) They help drive down airfare costs (2) The Big Front Seat can represent great value (3) Their primary business seems to be creating viral online passenger content.
Spirit Airlines brawl pic.twitter.com/CmpBDjr4Zq
— Clown World ™ 🤡 (@ClownWorld) June 2, 2024
'SPIRIT' OF THE MOMENT: Dozens were caught on camera throwing punches and kicking at a Spirit Airlines terminal in a video that has since gone viral. "This is embarrassing," one witness was heard saying. https://t.co/LwZf6Zn3fZ pic.twitter.com/qvVQYvVBGW
— Fox News (@FoxNews) February 23, 2025
Doesn’t letting them go, though, help make Frontier Airlines more viable? And isn’t that good for low fares and jobs? Spirit’s planes, gates and pilots still exist. Some of those planes wouldn’t stay in the United States, but total Spirit capacity is less than 2% of the industry and much of that capacity would remain flying after an adjustment period.
They adjourned their disclosure statement hearing yesterday afternoon sine die (without date). Absent the Orange person turning the Yellow airline into something Gold-plated (no president wants 14k jobs to liquidate, but felt like a very half hearted statement yesterday), it’s done. There will be some competition for the LGA slots, perhaps. No one wants to fly out of the old and dilapidated LGA Marine Air Terminal. And whomever buys the “most” will put out some press release to appease the Orange person that says that they’ve acquired the ‘spirit’ of Spirit and will have a job fair to hire as many ex-Spirit employees as possible (without actually committing to hire any).
I’m no fan of Spirit but 7,500 jobs are at stake. That’s not chicken feed.
None of this is great. Loss of jobs, options for consumers. And fuel prices still rising, shortages likely. And pretty sure DHS, TSA, etc. still isn’t fully resolved. (And, Gary, in addition to that SW near-midair at BNA, there was another near-midair at JFK between AA/AC.)
the problem was that the US handed out aid to the economy and the airline industry in 2020 and that started w/ the current national leader’s first administration. Duffy seems to have a better grasp of reality in saying that NK isn’t worth saving. Given that NK has already pulled a couple percent of domestic US total capacity by returning airplanes – that is why the planes are piling up in the desert – and UA just said it would pull 5% of capacity – essentially making them no growth – the US can probably get through this crisis through capacity cuts.
A sad situation for those involved, not to mention ticket holders who hopefully will be reimbursed rather than left hanging as unsecured creditors. But the century-long history of airlines is that of many, many mergers and failures. To use an old expression, it does sound like it is time for Spirit to give up the ghost.
I’m just concerned that some of the customers might end up on my United flight.
@Dan — I hope so; you know, so they can get to where they’re going. (It’d be an added bonus if they annoy you.)
1990 thrives on this “sky is falling” theme. Should we save every job everywhere when companies make bad decisions? I don’t see your same concern for the individual fast food workers of a closing chain vs these poor suffering airline workers. Bad decisions have prices to pay.
I hope the aoc doesn’t go to waste. Despite spirit, frontier and JetBlue’s difficulties, there is still room for a novel startup. After all, the US domestic flying experience can only be described as awful.
My proposal:
– assigned overhead bin space (for a fee or with J or elite status). No more rush to board to get bin space.
– Fast boarding process(window, then middle, then aisle)
– In airports with significant presence, the airline gate area is the lounge. Controlled access to gate area, then once inside, comfortable seating, complimentary snack and drinks, upsell for alcohol and better food.
-And most importantly, no unions.
Guaranteed profitable and great customer experience.
Why are there only legacy carriers and the ULCC models? Time to manuver into a “basic” fare carrier. Luggage & Luxury are out of touch for a 3 hour domestic flight. While many will. gasp, get over it. We’re spending a billion day for ballrooms sculptures and a war. Shake up the grifters and make them save jobs.
If under-performing airlines closed up shop, would that really be such a bad thing?
Reducing flights and increasing fares would move business travelers to teleconferencing. Leisure passengers would stay closer to home, likely boosting local economies in the process. Load on the ATC system would drop to more manageable levels, with a likely emphasis on the freight carriers. Wins all around.
@ANAL — Did you not-see that ‘unverified’ story about how He almost nuked ’em, but-for JCS Caine’s ‘gettin’ him outta the room’… dude, if that’s true, the sky almost did fall, recently… (lemme guess, not true, according to you? Lies! Alternative facts!)
@Mantis — I also hope AOC doesn’t go to waste, both the Air Operator Certificate, and, also, the beloved Congresswoman. *wink*
That’s the Spirit.
They are now on ILS approach to doom.
@Denver Refugee — Naw, still bad for workers and consumers. You still assume the market is actually ‘free’ and ‘rational’ (or, at least ‘self-interested’), but, clearly in this era, little is rational anymore, and, both specifically and generally, markets are regularly corrupted by insiders, regulatory capture, and outright monopolies. So, time will tell if Papa lets ’em fail, or bail ’em out, probably only if they give Him ‘golden shares’ personally and rename it after Himself. Sadly, it seems actually up to Him. Psh.
Spectrum Boy and Fatty, two peas in a pod. SB UA is lowering growth but not cutting it. I know you are triggered by them having higher revenues than Georgia Klan Air but Fatty’s disdain for the common man, typical of his ilk, does not mean NK is going anywhere. You two need to find a large and medicated safe space.
LOL: Denver Refugee. Trying to stir things up again.
Go on a travel website, and say it would be “Wins all around” if “increasing fares” fares make it too expensive for anyone to fly. It would not be a “bad thing” “ If [all] under-performing airlines closed up shop”. He, He, He, Chop,Chop.
Jim L
too bad you can’t read financial statements. None of your statements are correct.
NK may or may not survive. Duffy said “he would have a conversation w/ Trump about NK”
There should have been a conversation w/ 45 about the impact of all of the bailouts that were thrown out during covid; the blue team just expanded and extended them which drove record inflation and helped produce the K shaped economy we are in now.
No one wants to see any employee lose their job but Gary is correct; NK is of no value to the national aviation system which is why no one has expressed interest in buying them as is.
while you have to resort to name calling and still miss the point, there are people including Gary that can accurately see the industry for what it is
Jim L too bad you can’t read financial statements. None of your statements are correct. NK may or may not survive. Duffy said “he would have a conversation w/ his boss about NK” There should have been a conversation w/ 45 about the impact of all of the bailouts that were thrown out during covid; the blue team just expanded and extended them which drove record inflation and helped produce the K shaped economy we are in now. No one wants to see any employee lose their job but Gary is correct; NK is of no value to the national aviation system which is why no one has expressed interest in buying them as is. while you have to resort to name calling and still miss the point, there are people including Gary that can accurately see the industry for what it is
If that senile Biden had left businesses be able to do business. Both JetBlue and Spirit would be better off. But the parasites wanted to stop it.
@ Tim — Article not about Delta.
Gene,
address your comment to Jim L. He is the one that is on the spectrum and dragged other airlines – under their real names or not – into the conversation. No one else went on a name-calling and factually incorrect tangeant
The buying an operator certificate thing is a boondoggle and should be outlawed.
As Dr. McCoy often said: “he’s dead, Jim”.
Sums up Spirit’s fate perfectly.
@Tim Dunn, @Jim LeJeune — Do you all really need to keep calling each other dumb?
@Walter Barry — The billionaires and their corporations are the parasites, not the average citizen, worker or passenger. So, if you’re serious, let’s end taxpayer subsidies for already profitable industries, like oil and gas, and let’s also ensure that the Pentagon can actually pass an audit. You faux-conservatives used to pretend to care about fiscal responsibility… turns out, that was a lie. Also, turns out, Republicans are really bad for the overall, long-term economy. Psh. Buncha jokers.
@stogieguy7 — McCoy: “Dialysis? My god, what is this, the Dark Ages? My God, man… drilling holes in his head’s not the answer. The artery must be repaired!” Maybe, Spirit can be repaired…
@Other Just Saying – Not trying to stir up anything, but acknowledging some facts.
In 2026 (and for some years before that), that business meeting almost certainly could have been an email. That conference talk absolutely should have been a whitepaper or even a blog post. Tourism is rapidly becoming a scourge on the planet. Most “personal” trips are better served driving. And, finally, people can adapt; goods need to move.
Airlines are not charity or government entities. If they are not generating sufficient revenue to cover cost of operations there’s no viable business. It’s not a one time event that will pass and ALL airlines need assistance to get over the hump.
Management should have been serious about restructuring in the first bankruptcy but did not. Employees have known for over a year their employer was in trouble and should have been seeking alternatives.
The ULCC business model does not work in the US other than a couple of niche players. Frontier will likely go down this same path. You can’t make up for a loss on every fare by selling more fares. Nor can you make up for money losing fares by paying employees more. Despite what people that went to Sanders and Warren (S&W) University would like to believe.
Spectrum Boy, you dance as Inpull the strings. Glorious! Every thing I posted is factually accurate kid. UA had more revenue than DL (reported yesterday so you are triggered) and Fatty has disdain for NK, which is a direct word quote he used in article less than three months ago. Contrary to your wishes, NK is not going anywhere anytime soon. As for Georgia Klan Air, they have more racial.bias complaints per annum than all other big four airlines COMBINED. Bummer.
We can’t make it better, faster stronger. We don’t have the technology.
@George Romey — This freakin’ lazy trope again… yeah, George, we get it, they aren’t charities, nor does the government run them, yet… but that’s not really the issue here… transportation services, common carriers, etc., are an inherent asset for the country. We don’t want them to fail, sir. The LCC/ULCC model does work in the US, and elsewhere; it just cannot get squeezed by bad government policy, like a new forever war on a whim that spikes global oil prices… thank ‘your’ guy.
Other Just Questions:
(1) Bankruptcy: Is Spirit worth more as a going concern or in liquidation?
(2) Is allowing Spirit to continue to operate in a financially damaged fashion dangerous to the flying public?
(3). Are there any airport concentration issues which would allow other airlines to have monopoly positions in certain markets?
(4) Is there a contagion risk? In other words, if there is no help for Spirit, does that mean the Frontier, Jetblue…etc will also be allowed to fail in short order? What about American Airlines?
(5) Which party will it help if Spirit goes out of business? What about geographically?
(6) Should we be worried about job loss?
(7). Is there a downside to moral hazard arguments in this case?
(8). Do the taxpayers already have a vested interest in Spirit via debt financing?
(9) Or to snark Denver Refugee, is flying morally bad (“a scourge on the planet”)? My girlfriend loves being a tourist. Apparently, he does not like my girlfriend. Maybe we should call you Cranky Refugee.
To be honest, I cannot answer any of the above questions. But I would enjoy reading the take of the commentators here.
@Denver Refugee — Just give Professor Scott a minute… after all, he’s come millions (no, thousands!) of miles… he might be able to offer something to you… (“hello computer…”) *click click click*… *ENTER* …transparent aluminum.
@Denver Refugee — …that may abandon the Prime Directive, though. Instead, we could always try ‘more colorful metaphors’…
@Other Just Saying – Flying is by no means “morally bad,” and I still fly a fair amount for work and personal reasons, but adopting a “Is this trip really necessary?” attitude never hurt anyone. My concerns are more about money and time, which are often better spent elsewhere.
Jim L
again, the fact that you can’t read a basic income statement speaks volumes about your ability to contribute anything on topics related to the business of aviation.
DL generated $1.2 more in operating revenue than UA. and you and others don’t need to start tearing those numbers apart to try to prove that UA is superior because investors can see the truth.
UA’s growth is coming to a near halt and they are selling new airplanes they paid cash for in sale/leaseback transations which adds to the balance sheet long term.
UA will be paying even more for fuel in the 2nd quarter as well as pay employees much more as, hopefully, UA FAs adopt the proposed labor agreement.
It is all as I predicted and you can’t admit that I am right.
UA is vastly improved but nowhere near closing the gap w/ DL
I wonder if President Trump bails out Spirit on the condition that they operate illegal alien repatriation flights as a lifeline, until NK can be absorbed or bought by someone maybe. That should protect some jobs.
The Wall Street Journal reports that the US government is working on a $500 million loan to NK.
The US esp. in an election year cannot let airlines fail even ones like NK that cannot come up w/ viable business plans.
Doing dumb things overseas and then badly damaging an industry to the point of needing taxpayer intervention is not good for anyone
Frontier will be the last ULCC standing. How much if any does this help?
@ 1990 — My friend, the ULCC model is NOT working in the U.S.
It enrages me that a taxpayer bailout is even being considered. End stage capitalism indeed.
Let Spirit die.
Let someone else take over that market.
Kill it
@Gene — Frontier, Allegiant, and others aren’t failing yet.
@Walter Barry -thanks for your invaluable input (sarc). The “Senile” Biden administration did allow AS to buy out/merge with HA. What happened there?
MAGA’s —->such gullible simpletons.
Spirit shpould covert their planes to homeless shelters, they’d feel right at home in those cabins.