"In an unusual appeal, the unionized pilots of Spirit Airlines have written to the company's bondholders to urge them to continue backing the company's reorganization in bankruptcy court, and to reject a liquidation "that would destroy South Florida's hometown airline." The open letter, written on behalf of the Spirit contingent of the Air Line Pilots Association, comes after the union and management settled on a revised contract late last year that provides economic concessions designed to cut labor costs."
"For the second time in less than a year, the Dania Beach-based budget carrier filed for Chapter 11 bankruptcy protection in August 2025 amid increased competition, a heavy debt load, and a default declaration by its largest aircraft lessor. Since then, the airline's management has made progress cutting costs by cancelling and renegotiating aircraft leases, revamping its route system and cutting Spirit's labor costs, among other measures. It also secured hundreds of millions in operating capital with the blessing of key lenders."
Pilots for Spirit Airlines sent a Jan. 13 letter to the carrier's bondholders urging continued support for the Chapter 11 reorganization and opposing liquidation. Pilots and flight attendants agreed to revised contracts that include economic concessions expected to save up to $100 million annually over the next two years. Spirit filed for Chapter 11 in August 2025 amid heavier competition, high debt and a lessor default. Management has pursued cost reductions by cancelling and renegotiating leases, altering routes and cutting labor costs, and secured hundreds of millions in operating capital with key lenders. The union signatories include Ryan P. Miller and Jason Ambrosi, and ALPA posted the letter on its homepage. ALPA and Spirit declined further comment, and no formal Chapter 11 exit date has been proposed.
Read at Sun Sentinel
Unable to calculate read time
Collection
[
|
...
]