Originally Posted by
Hedley
Not very familiar with the 363 rules, but my understanding is that it allows the sale of certain assets, not necessarily the whole company. If someone were to come in and offer to take 30% of the aircraft and a few slots (made up number) would that technically be an acquisition? Is there any requirement to take the pilots, if so how many and which ones? Also, acquisitions are very time consuming, expensive, and messy. Considering Spirit’s current financial situation, wouldn’t someone like Frontier be better served just waiting for an opportunity to take over the leases of only the aircraft that they want in a CH7 situation? The legacies aren’t likely going to be bidding on them and the substantial merger/acquisition cost could be avoided. Mergers take years to complete, and practically all analysts agree that Spirit doesn’t have years, even in CH 11. If a 363 asset sale requires purchasing company to absorb the numerous parts that they don’t want, how is that an advantage to them?
Spirit ALPA CBA currently lacks fragmentation/transfer of assets protection. The MEC/NC reportedly did not peruse that protection because NK simply has very little assets,
most everything is leased and owned by banks which would not trigger frag language.
Merger and Fragmentation is when airline A transfers assets to airline B. This is a case where airline A has planes taken back by Bank A, and then sells to Airline B
This is what was told to me directly by the MEC when I asked them