Spirt filed for Chapter 11 again
09-12-2025 | 08:55 PM
#281
Line Holder
Joined: Sep 2020
Posts: 1,558
Likes: 335
The airline that’s in bankruptcy is asking the judge for permission to make certain deals with its lenders so it can keep using its airplanes during the bankruptcy. These deals are allowed under a special part of bankruptcy law (Section 1110), which basically gives airplane lenders extra protection.
I used my own intellect and not Ai to understand per the APC roe.
- Wait a second — if the court just lets the airline do this, all the planes could end up tied to debt, and if the airline fails again, there will be nothing left for shareholders.”
- Instead, you’re asking the judge to set aside 10 airplanes in a kind of “safe box” (you call it an Asset Trust).
- The idea is that if this reorganization fails and the case turns into a Chapter 7 liquidation (which means the airline is shut down and its stuff sold off), those 10 planes could be used to start a brand-new, debt-free luxury airline.
- That way, there’s at least a chance for shareholders to recover some of their investment, instead of losing everything after two failed attempts to reorganize.
I used my own intellect and not Ai to understand per the APC roe.
Obviously since the request was withdrawn, its a moot point.
09-12-2025 | 11:49 PM
#282
Line Holder
Joined: Jul 2017
Posts: 350
Likes: 66
It would not be a "debt free" airline. It would have to borrow for setup costs like certifications from the FAA, hiring and training employees, setting up maintenance programs and access to spare parts etc and other operating expenses until it can start generating revenue. Also I doubt 10 planes would be anywhere near enough value to provide anything to shareholders.
Obviously since the request was withdrawn, its a moot point.
Obviously since the request was withdrawn, its a moot point.
09-13-2025 | 07:10 AM
#283
Almost there
Joined: Apr 2021
Posts: 1,968
Likes: 109
Aercap said in its recent financial report it has a backlog for 335 planes. The idea that "not all will find a home" is ridiculous. Aercap will have those planes placed immediately. The idea they will get "pennies on the dollar" is ridiculous. Just because some US based ULCCs don't want the planes, there are other airlines in the world that need them and will take them as soon as they are available. Been to Asia recently? GDP growth is 4-5% throughout much of Asia. Southern and Eastern Asia is literally boomtown for airlines right now. That's where those planes will end up.
09-13-2025 | 07:40 AM
#284
Line Holder
Joined: Feb 2019
Posts: 1,226
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From: baller, shot caller
From my understanding, Spirit can't sue Pratt but what about Aerocap? They might be able to go after Pratt for additional compensation.
09-13-2025 | 01:19 PM
#285
Line Holder
Joined: Sep 2020
Posts: 1,558
Likes: 335
The engines are separate agreements than the planes. Aercap owns the planes, Spirit owns the engines.
09-13-2025 | 03:11 PM
#286
Gets Weekends Off
Joined: Feb 2008
Posts: 20,866
Likes: 178
The bondholders are not decision makers at the company. They don't decide these things. Management runs the company. Also the bondholders just got burned because they converted a bunch of their previous debt to equity during BK1 and that equity is already wiped out with this BK. No idea how much of their shares they sold, but likely not much.
I'm guessing other entities can see what Spirit management just did to a group that came in to help out and don't want the same thing to happen to themselves.
I'm guessing other entities can see what Spirit management just did to a group that came in to help out and don't want the same thing to happen to themselves.
09-13-2025 | 03:15 PM
#287
Gets Weekends Off
Joined: Feb 2008
Posts: 20,866
Likes: 178
The current examples we have of breeze and avelo don’t point to that being true. Or frontier.
basic economy looks like it won that battle.
there isn’t a ready supply of new (or used) low cost airframes. There isn’t a particular excess of low cost pilot labor. There isn’t tons of unused capacity at desirable airports. I don’t see economic inefficiency to exploit
basic economy looks like it won that battle.
there isn’t a ready supply of new (or used) low cost airframes. There isn’t a particular excess of low cost pilot labor. There isn’t tons of unused capacity at desirable airports. I don’t see economic inefficiency to exploit
09-13-2025 | 03:26 PM
#289
Line Holder
Joined: Apr 2007
Posts: 1,412
Likes: 12
From: A320
09-13-2025 | 04:08 PM
#290
On Reserve
Joined: Apr 2019
Posts: 57
Likes: 1
In what parallel universe was Spirit’s contract ever considered good? It had the lowest pay in the nation for years and the weakest 401k contribution compared to any of the decent career airlines. What am I missing?
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