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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.
A Spirit Airlines passenger discovered someone else occupying her front-row seat, 1A, which she had paid extra for. It’s a “Big Front Seat” and starting next week the airline will try to turn it into a ‘real’ first class.
Spirit Airlines isn’t going to be more successful by offering a less desirable product than American Airlines at a higher price.
The Spirit Airlines Big Front Seat used to be the best deal in travel at a modest upcharge. The idea that it’s worth more than double or even five times the base price is insane.
Consumers haven’t wanted what Spirit and Frontier have been selling. Those airlines have struggled. They’ve responded by shifting the routes that they fly, and the products they sell. Frontier has upended its fares and now sells a premium product with both extra legroom and blocked middle seats. Now Spirit is moving in that same direction.
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 »
