They are basing getting profitable by raising market share in the $200 class from 15% to 20%, sloping to the $600 class from 1.5% to 15%. Maybe getting another 5% @ $200 is achievable, but getting 10 times as many people @ $600 and over 15% of everyone in between without a new pitch & more BFSs, new gate people, food in the airplanes, better reservations options (person you can talk to) is not going to happen. I heard UAL didn't want NK planes because it would take too long and expensive to reconfigure them.

Napkin math: for the first 6 months of the year, NK lost $350M, flying 12M people at $108/person. Breaking even would have required another $30/person. Focussing on getting an extra $50 has a better chance than focussing on an extra $500...

You’re right increased seat pitch was mentioned. That would probably require fewer seats. I think it would take actually offering different seats in addition to the added leg room. We have two hour seats. They are absolutely miserable beyond that amount of time.

This is all smoke and mirrors. The bond holders know then’ll make more money selling the assets piecemeal than all at once via chapter 7 liquidation. So they injected some money to keep the operation going while they figure out how to lose less money.

This injection was to avoid chapt 7 and was a lifeline. Now they actually take control of the company, which is a big deal; they can start selling off everything. Ted's job is to get $3.8m bonus to ride it to the end and keep order here, not create panic

Ted got his parachute ahead of time.

What assets?

Full company fire-sale would be hard to accomplish and get divided many ways. If the bondholders take the company, they get full access to divertable cash flow, the headquarters and the opportunity to more deliberately burn the furniture.

As for dollar general vs target. True, the old crowd didn't pay all the bills, but they paid 95%. Throw them out and now nobody is paying the bills UNTIL the target shoppers show up.

This 100x over. The damage to the brand is done. You need a new name and new paint, otherwise too much damage done to change your audience.

I don’t see it going this way. Explain how they control the company? Are they getting 51% of the equity for their forgiven $800m in debt and $300M in cash? Are they taking the company private? It’s also not one bond holder. It’s a collective so they each have smaller pieces of the pie of the new equity not one entity w one controlling chunk. I’ll have to go back and read the RSA

I think they're getting all of it. That's the deal. Current stock goes away - new stock goes to bondholders.

I tried to go back and understand it. Way to complex for me to understand. They are definitely getting 100% of a $350M equity offering but I’m not sure what that means in regards to control of the business. I couldn’t find an answer.

It would be nice if ALPA could break down the ownership of the company in “the plan” upon exiting bankruptcy in March.

Yep that’s basically it. And Spirit put up the HQ as collateral. If it all goes as smoothly as planned the bondholders will come out with a fantastic deal.

Maybe the company should do that. Why is that the union's job?

They are going to issue millions and millions of new shares of stock if they emerge. The bondholders doen't want control they want $$$$.

How do you go about rebranding a 200 airplane airline, new paint, new interiors, new airport branding, with limited resources, in a timeframe that allows the targeted customer to forget its spirit?

endeavor can call itself something new every month and no one cares because it’s still delta connection.

BC now they don’t have to answer to anyone. They don’t have to give an explanation so they won’t. All the answers are in a couple 300+ page documents of legalese. Alpa has lawyer that are familiar and versed in this stuff. Breaking it down for us non-lawyers would be nice

This is kind of what I thought but couldn’t find an answer skimming the docs

[double post

The main reason you wont see any meaningful business travel on Spirit is that most major company travel policies specifically prohibit booking ULCC.
For example, my airline (and we are nr3 company in the country in travel spend) can not book Spirit or Frontier unless we specifically request it, Southwest is allowed in certain city pairs.
Most companies that spend heavily on travel have similar restrictions.
That is the hurdle NK has to figure out if they want to cater for the heavy hitter business travelers.

huh???

——

I’m pretty sure alpa does not have any bankruptcy or corporate finance attorneys on staff.

Huh what?

2022 we spent $212 million in travel and half the world was still shut down. This year we'll exceed $300 million.
This year I've spent over $100k and that doesn't include direct-bill hotels (which are probably around 90% of my hotel stays).

As a comparison, Coca Cola Company spent $27.5 million in 2023.

He gets airlined positive space around the globe all the time. And not in economy.

And I'm sure we're all very impressed. Glad you finally got to tell us. You've been trying to get asked that for days now.

So anyhow...

Anybody know specifics of Project Bravo?

just seems pretty vague what they have online.

You mean besides the 55 page SEC filing? I doubt anybody does besides the ones at the head of the table.

https://file.io/LratGtR802Ey

https://send.vis.ee/download/dcaa9c4fe9c8e7cb/#To1_4kAKaT1Ur6D8dyrzUQ

Don't want to link my personal account, and these links expire... If someone knows a better way to share let me know

I especially doubt page 10 (#37 on the page itself) where they assume NK will capture over 20% of the domestic market in the $200-$400 segment, and between 20%-15% in the $400-$600 segment. Currently less than 5% in anything over $300. There is no way they can do that in a yellow bus with Spirit on the side. It would require a massive, lenghty and expensive overhaul. NK does not have the time, momey or managment to pull that off.

How do you spend $100K annually in travel excluding hotel costs?? Do you only eat at airport Panera while on the road??

If you spent $100 everyday 365 days a year at Panera, you’d still only be spending $36.5k a year.

is this guy not using the company hotels and transportation? Is he buying tickets instead of nonrevving/JS? Are you staying at the Ritz Carlton instead of a crash pad?

yeah this guy is def doing it wrong.

I took it to mean his company spends $100K a year on travel.

I doubt it. First quarter is a slow quarter for all the airlines. Does Spirt have the cash or ability to pay the bills until next summer when travel picks up? Can Spirt convince their passengers to pay a higher premium for tickets so they can make a profit? When Spirt ticket prices get close to the big 4’s ticket prices I would assume the majority of the general public would choose the airline with more frequency and a better reputation/brand.

Unfortunately I don’t believe Spirt will be around in two years. The Brand is associated with poor customer service (mainly gate agents) and historically with a none apologetic attitude towards customers trying to get a refunds for anything, along with brawls on their flights. I don’t think many people will ever see Spirt in a very good light. It’s the Dollar General of Airlines with typical customers. With all the talks about bankruptcy I can only assume more people would avoid buying tickets on an airline that might go chapter 7 right before their trip 3-6 months from
now. I have a few friends that are pilots at Spirt and are great people. Spirt has a lot of nice new planes with great pilots and a great safety record. I hope the best for them. My guess is they merge or go away unfortunately. This is just my opinion and it means absolutely nothing. I hope I’m wrong.

Tuning up the dress code...

https://www.foxbusiness.com/fox-news...ng-tattoos-fly

Would love for it to be enforced and enforced without causing a scene or fight

why, so we lose a third of our customers?

That’s the entire point of this Bravo plan, to get rid of the ratchet trash that pays the lowest cost and replace it with higher fare passengers who will pay for the extras.

Do I think this will work, heck no. Do I think this is basically their way to say Atlanta and Detroit folks, maybe you should take the bus, yes.

Don’t forget New Orleans and Baltimore

Actually 90% of NK flights

Corporate meeting of VP's and select departmental Directors:
Leader 1)
"Now that the COVID Mask Mandate fist fights are over, and the MAGA Hat consternation is dwindling, the Middle East buttons and support bling is simmering down, what can we possibly do to cause further delays, consternation, and disruptive behavior that earmarks us as the go to late night joke bumbling fools that we're known for?

Leader 2)
"I know, how about a new completely subjective policy that alienates and embarrasses our customers publicly on Social Media? Let's mandate the way people dress based on a single employee's feelings, mood, religious beliefs, and personal political affiliation? Heck, half our staff can barely read, instantly judge people based on attire, since we don't pay them enough to own homes, and they certainly don't understand irony or complex ideas that may mean the idea expressed on the front of a T-shirt may actually not be offensive since we hire based on needs of the moment and the whims of the team leader interviewing."

Leader3)
"But won't this cause operational problems that affect our A14, you know a percentage of Ted's bonus depends on that right?, It's the whole purpose of the "Feel Good Friday" newsletter isn't it? You know, more delays and irate passengers causing scenes and filling less seats?"

Leader 4)
"Are you crazy? We already billed their credit card"

Leader 1)
"Leader 3, we haven't had a single Passenger since 2005 when that smart guy we hired in Marketing proclaimed them as Customers, are you daft? Please see me after the meeting, have you even done the Empowerment PowerPoint?"
Leader 1)
So it is written, so shall it be done. Unless that phrase offends anyone. The point is to empower those Spirit Family Members that feel disenfranchised or morally obligated to judge something completely unrelated to their job at any company!


Leader 3)
"I'm sorry Leader 1 Sir/Madam/Them/They/It/Was , sounds good, we're the improved classier Spirit, Plan B or something, we'll show those scumbags that buy our tickets we ain't playin, I'll report for PowerPoint re-education immediately"