Tag Archives for spirit airlines.
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.
In a video now going viral, two Spirit Airlines check-in agents can be seen fighting. At the start of filming, they can be seen bumping, while one says to the other “do not play with me.” She just continues tap, tap, tapping away processing a check-in like it’s no big deal, just another day at Spirit Airlines.
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.
A Spirit Airlines plane was hit by bullets while flying over Port-au-Prince. They landed safely in Santiago, Dominican Republic, however a flight attendant was reportedly grazed by a bullet. Video from crew inside the aircraft show bullet holes.
Former Spirit Airlines CEO Ben Baldanza passed away last night from ALS. He was 62.
The business model isn’t working. They don’t have long haul international service that customers have wanted to buy. They don’t have airline partnerships to sell those products on other carriers, or pick up connecting traffic from other airlines either. And they’ve been the downmarket product that’s very much out of favor, as customers have increasingly been interested in paying more for a better experience. (Spirit has even shifted its business model chasing that business.)
Even if you don’t fly the two airlines, Frontier plus Spirit means a stronger airline flying more planes under an ultra low cost carrier model. That’s capacity charging lower fares driving down the prices that United, American and Delta can charge.
Buckle up because this may be the most Spirit Airlines story every that doesn’t involve a mass brawl.
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.
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 »
