Spirit Airlines files for bankruptcy but plans to continue flying

Spirit Airlines has filed for bankruptcy protection, but most flights are expected to continue as planned for now.
Passengers with existing Spirit reservations should monitor for notifications of possible changes to their itinerary.
The fate of Spirit’s planes depends on whether it owns them or is leased and whether the airline chooses to sell them during bankruptcy proceedings.

Spirit Airlines filed for bankruptcy protection on Monday, after the company long planned to continue flying despite struggling with quarterly losses, failed mergers and looming debt.

your soul troubles deepened That’s after a planned $3.8 billion merger with JetBlue Airways collapsed in January and a malfunction in RTX’s Pratt & Whitney Geared Turbofan engines grounded many of its planes, USA Today reported.

The airline listed its estimated assets and liabilities at between $1 billion and $10 billion each, according to a court filing Monday.

Soul One of 17 airlines There are flights to and from Detroit Metro Airport in Romulus. Spirit flights use the Evans terminal.

The airline does not list any flights to Michigan’s other major airports in Grand Rapids, Lansing, Midland-Bay City-Saginaw, Flint, Traverse City or Marquette.

The soul says you fly further 700 routes to 77 destinations. Flying to more than 60 destinations Detroit.

Soul It signed a deal with bondholders that is expected to reduce overall debt and increase financial flexibility, USA Today reported. The airline received commitments for a $350 million equity investment from existing bondholders as part of its prearranged Chapter 11 bankruptcy protection.

The carrier said it expects to continue flight operations throughout the proceedings and that customers will be able to book and fly without interruption.

Here’s what Michigan travelers need to know as Spirit enters bankruptcy.

What happens to flights booked in Michigan?

Most, but not all, flights will operate as planned in the near term.

Thanksgiving travel is particularly unlikely to be affected, but schedule changes and cancellations are possible later in the winter, said Robert W. Mann Jr., former airline executive officer and current president of R.W. Mann and Co. the independent airline consultancy told USA TODAY.

“It is quite likely that there will be other changes when it comes to the 45-day period at the end of the year,” Mann said.

Passengers with Spirit reservations should keep an eye out for notifications from Spirit regarding any changes to their itinerary as their departure date approaches.

The Department of Transport recently finalized guidelines requiring airlines to provide passengers with the following information: full refund If the flight is canceled or delayed for any reason by more than three hours in the domestic itinerary and six hours in the international itinerary. Passengers are eligible for refunds only if they choose not to travel on a delayed flight or on an alternative itinerary offered by the airline.

Can I transfer my Spirit loyalty miles to another airline?

Generally, airline loyalty points or miles are non-transferable, but Mann said frequent flyer programs are valuable assets that often survive bankruptcies.

“That’s an asset, at least in terms of people who can buy them. You also get a customer base,” he said. “This could actually be a source of funding going forward.”

It’s also possible that Spirit could emerge from bankruptcy through a merger.

If Spirit merges with another airline, its frequent flyer program is likely to be part of the package and be combined with the other airline’s program.

Who controls Spirit’s planes?

Spirit does not own all planes anyway. The lessor will keep the leased portion of its fleet and be free to re-lease it to Spirit or another airline, depending on the offers on the table.

Spirit-owned planes could be sold to raise cash during bankruptcy, but the airline may choose to sell other assets such as gates and airport slots instead if its executives think the planes are more likely to generate revenue by remaining in service.

Contributed by: Reuters

Jalen Williams is a trending reporter for the Detroit Free Press. Contact him at [email protected].

What happens to flights booked in Michigan?

Can I transfer my Spirit loyalty miles to another airline?

Who controls Spirit’s planes?

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