I agree. If NK goes into CH13, can the judge change the contract/compesation and lower pay/benefits without a union vote?

YES.
Filler

It would be Chapter 11. Yes, pretty much all union contracts are vaporized in bankruptcy proceedings.

They’re open for renegotiation like all agreements in ch 11. Not vaporized. Point being rates/retirement are the easiest targets. It’s not hard to show the reorganization math on a balance sheet to investors. Work rules normally come out pretty much intact. Making them even more valuable to hold on to in normal sec 6.

Well that is a bunch of BS. Im sure the C Suite Execs will get a golden parachute and labor takes it in the rear....Hope it does not come to that.

No No No No

No absolute lie

Finally! Something industry standard that we can actually achieve!

Chapter 11 is voluntary reorganization.

Chapter 7 is go out of business. Divide up all the assets and turn off the lights.

Look. I’m well aware of the current financial status of the company. Everyone is. Fact is, a human that works for Spirit airlines, possibly management-type, determines the numbers and how they pertain to the balance sheet. Simply put, the same people that release the information regarding the financial statistics of the company, have said nothing about being unable to pay the bills.

So, why do some take the companies word on the loss, but don’t take their word when they say they have a plan to return to profitability? Believe one story but not the other? Makes no sense.

because negativities sells excitement. And negativity breeds more negativity. I’ve said that from the beginning. Why do we believe them when they come with bad news but we absolutely don’t believe them when they come with good news? But I would also say it’s probably the same reason that keeps the people who have moved on to other airlines, coming back here to stir the pot. That I don’t understand at all.

Very good news. Nice chunk of cash for this year.

I can't speak for people who have an agenda, but I wouldn't listen to what anyone says on the matter. You can do the math yourself. Spirit currently burns roughly 100 million per quarter, and has been pretty consistent in that number since Covid. They currently have roughly 900m in cash and 1.5m in current assets. That gives them a runway of 9-15 quarters at the current burn rate. They have a large debt payment of 1.1B due in 2025 that will need to get refinanced at astronimcal rates or it could potentially sink the company. I think it is possible to turn it around, get to profitability, and then figure out that 1.1B debt payment, but I don't think this management team is capable of doing it. They've already sold and leased back some of their aircraft, so they are running out of assets to leverage.

I am curious about the NK order book timeline now that some have been deferred, the current status of the 319s they were giving back, and the ratio of leased vs owned now. But it’s not my company so I haven’t taken the time to look it up.

Ted’s email made my weekend. Happy Easter fellow yellow friends.

For the 319s: 10 are still in the fleet, still being retired this year.

20 or so deliveries this year, mostly 321neo. More and more neos being pulled from service for engine AD.

I guess there’s absolutely no way to extend the life of those A319’s is just a wee bit more until those NEO inspections wrap up?

like a little more duct tape or WD-40 or whatever can get the job done??

My understanding is that the planes are already sold and they can't cancel those sales. The planes themselves can fly indefinitely as long as they pass heavy checks. The 320 series has no hard life limit.

Pratt money is old news. Ted's words were put into a 8k filing is all that happened. That money has already been included in the outlook. Going to be a lot of tears soon when the bad news hits.

You the Excargo of Spirit now???

How in the world is it $150-200m in liquidity. How do they not know how much cash they are getting??

Reminds me of the old Mitch Hedberg joke:

"I saw a billboard for the lottery. It said, "Estimated lottery jackpot 55 million dollars." I did not know that was estimated. That would suck if you won and they said, "Oh, we were off by two zeroes. We estimate that you are angry."


But on a more serious note, it's probably because the days each plane is out of service varies and it seems like it is a variable payout based on that. From the SEC filing: "The estimated impact of the Agreement on Spirit’s liquidity is currently expected to be between $150 million and $200 million, primarily determined by the number of days accumulated in 2024 in which Spirit aircraft are unavailable for operational service due to GTF engine issues."

right? I don’t understand why these people keep showing up on our page when they work for
other Airlines now. We know that they did a lease back, but which aircraft did they sell? Which orders did they defer? These things with all have to be made public! Where is it written? Which orders or deferred? How many of them or deferred? Which aircraft were sold? I think there’s a lot of speculation going on here. I think today’s news was news in the right direction. Anyone that says any different, needs to pick up their books and go home

agreed! Todays news was good, it was nice to hear from management. It sounds like they have the ship pointed in the right direction.

The Titanic was pointed towards New York when it went under.

thanks for the awesome update there. Not sure what we would’ve done without it.

When is the date of the next earnings call? I tried looking at Yahoo Finance SAVE but didn't see it on there.

The 150-200 million for the GTF engine issue is good news BUT it's just one piece of the plan to return to profitability. Also probably not a suprise to management or people following things closely. It would just be nice to finally know what the plan is going to be though..

Late April, somewhere around the 24th I believe? But not officially announced yet; not anywhere I can see anyway.

Maybe we can get our accounts current now since over half of NK accout payables are 30+ days in arrears.

https://www.thestreet.com/travel/rep...-11-bankruptcy

Except it doesn’t solve the issue that nobody wants to fly on Spirit unless they have to.

Then I guess lucky for Spirit. New poors are being minted on the daily in this country.

I’m gonna guess you have no idea how many people “have” to fly Spirit. Would you be offended if someone called you poor? The majority in this nation don’t even make a 3rd of what you do. If you’re a pilot that is. Being part of the upper middle, can skew one’s view of what’s affordable.

Still not enough if that’s going to continue to be our target market. We need more people that buy tickets on airplanes to choose spirit. We don’t have that hence why we don’t make money. To get people to fly on us we have to sell tickets at a loss and hope to make it up scamming them with fees later. It’s not happening. Planes are fulliah but still not profitable. We need more demand so we can raise prices. Except when we raise prices demand goes down when you sell a garbage product. You have to make it up in customer service like southwest does. We think we can yell at people and have them waiting a half hour for a gate and an hour for their bags. Not going to work.

Yes. A majority of the flying population has voted with their wallets, they’d rather pay more and get more frequency, more destinations, loyalty rewards, and less up-charging. For those that say mergers haven’t been a good thing, the flying public disagrees with you.

Exactly this! ^^^ Spirit is the most hated airline in the world and the most hated publically traded company in the US. This is what happens when you sh!t in your customers mouths for the better part of a decade.

Michael O’Leary takes offense to your comments.

Wonder why Ryan can’t die purely from customer dissatisfaction. Pilot discounting themselves seems to make up for it.

****s on employees not the customers

Our management did this and refused to adapt when forced to look in the mirror. Merger has been dead for two months and still no adapting. Same story. They WILL get retention bonuses to pull the plug on the ship and watch it safely sink. Watch

There is no way a 200 plane airline that owns nothing is too cumbersome to change strategy on a dime. Mismanagement period. Zero leadership.