AVIATION BUSINESS MANAGEMENT

  Key Takeaways from Spirit Airlines’ Bankruptcy Filing: Chapter 11 Bankruptcy Protection Spirit Airlines filed for bankruptcy on November 18, 2024, citing challenges such as a slow post-pandemic recovery, a failed merger with JetBlue, and difficulty renegotiating debts. Restructuring and Recovery Plans The airline has a shareholder-approved plan to restructure debts and secure funding, targeting an exit from bankruptcy by Q1 2025. Customers can still use their tickets and loyalty points as normal. Operational Challenges Operational struggles include engine issues affecting over 200 Pratt & Whitney-powered A320 aircraft, heightened competition, and rising operational costs. Cost-Cutting Measures Steps include delaying aircraft deliveries, furloughing staff, and selling planes to generate cash flow. Historical Context and Business Model Spirit, a pioneer of the ultra-low-cost carrier model since 1992, sustained profitability until 2019. The pandemic disrupted its operations, com...