Tag Archives for bankruptcy.
The airline has seen its costs rise – and not just post-pandemic labor cost increases. They inauguarated a new four-building, 11-acre corporate campus last year. Spirit!
Spirit Airlines has hired PJT Partners to help “explore strategic alternatives.”
There seems to be concern about their proper handling of money, including government-mandated payments.
The airline’s stock will be wiped out, $795 million in debt will be reduced, and the new owners will inject $350 million into the carrier. That won’t last long.
Silver Airways filed Chapter 11 bankruptcy in the Southern District of Florida on Monday, listing both assets and liabilities of $100 to $500 million each and doesn’t expect anything to be left for unsecured creditors after administrative expenses of the bankruptcy are paid.
With their bankruptcy filing, they’ve laid out the changes they believe are necessary to turn around the airline’s performance. And it’s taking further the notion that they need a different product to appeal to today’s consumers, especially in an environment of higher costs. They plan free wifi; free water and snacks for all; and improved customer service. They’re also planning improved upgrades for elite frequent flyers.
Spirit Airlines has filed for bankruptcy after merger talks with Frontier fell through, citing $8.99 billion in debt and plans to restructure through creditor agreements while continuing operations, though travelers may face higher fares and route adjustments in the future.
Spirit has been trying to put off bankruptcy by route cuts, getting rid of aircraft and shedding workers.
Frontier was looking to buy them, despite all of their troubles.
Spirit Airlines is in talks with bondholders about a pre-packaged bankruptcy that would allow the airline to reduce debt in exchange for equity. This move would potentially allow the carrier to reject leases on aircraft grounded due to engine problems. Twenty one Airbus narrowbodies are currently in storage (or heavy maintenance) out of 94 with Pratt & Whitney Geared Turbo Fan engines, according to Cirium fleet tracking data.
Out of $3.3 billion in debt, one third of that comes due in under a year, and it must refinance or extend the debt by October 21 under covenants with its credit card processor agreement.
Garuda has now filed for bankruptcy in the U.S.. A Chapter 15 filing prevents any creditor lawsuits here, as well as seizure of assets. Garuda restructured $9.5 billion in debt this year, and has $5.1 billion remaining. Boeing did not participate in the restructuring in Indonesia.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
