"But now, according to a motion and an affidavit filed in U.S. Bankruptcy Court in New York, Spirit management and AerCap have resolved their disagreements and placed the airline on a clearer path toward restructuring its finances and slimming down its fleet. As part of the deal, AerCap would deliver an unspecified cash infusion to Spirit. The amount of cash involved is unknown as the figure is blacked out in the court filings, which are heavily redacted for competitive reasons."
"Both before and after filing the latest Chapter 11, Spirit has mounted a major assault on its costs, most recently making the painful decisions of furloughing one-third or 1,800 of its 5,200 flight attendants, furloughing 270 pilots and demoting 140 others, and shrinking its fleet and route system. When Spirit filed for Chapter 11, the airline had 214 planes in its fleet, with 166 of them leased, according to court papers."
Spirit Airlines filed for Chapter 11 bankruptcy protection on Aug. 29, marking a second filing in less than a year after AerCap declared the carrier in default on several Airbus jetliners. Spirit and AerCap negotiated weeks of talks and reached proposed deals that include a Global Restructuring agreement and an unspecified cash infusion to Spirit, though the cash amount is redacted in court filings. A court hearing on the motion is scheduled for Sept. 30. Spirit has cut costs sharply, furloughing roughly one-third of flight attendants, furloughing pilots, demoting others, and reducing its fleet and routes.
Read at Sun Sentinel
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