Tag Archives for bankruptcy.
Two major U.S. airlines are quietly drawing up contingency plans in case Spirit can’t secure its next $100 million lifeline and has to shut down operations. A crucial cash deadline hits as soon as Saturday, and with no sale or standalone reorganization plan yet on file, Spirit’s future now depends on what its lenders are willing to accept.
Spirit Airlines has landed back in bankruptcy and is now facing securities fraud claims from investors who say the carrier overstated its turnaround prospects after emerging from its first restructuring. As usual in these cases, the only clear winners appear to be the lawyers gearing up to litigate the airline’s latest collapse.
Spirit Airlines is in bankruptcy for the second time in less than a year. A lot of ink has been spilled over the reasons why, but I do think a part of it is something simple everyone is missing.
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.
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 »
