In this day and age the FAA will intervene with certificate action before that really happens. They know what happens when truly broke airlines try to keep flying. Maybe they can default on corporate finance obligations but they need to keep some cash (or equivalent) on hand to keep the feds happy.

I'm going to point fingers at decisions like building a crystal palace, a mostly empty training center, a non-contractually compliant company hotel, and the inability to attract and retain customers long before I'm going to blame sub-industry standard pilot compensation for the current financial health of the company.

My post is very clear that I am not basing NK demise on pilot wages. I clearly agree that there are many factors. It is funny to read how employee compensation should have nothing to do with profitability of a company. To extract large wage increases from a continuously unprofitable business is pure suicide. NK is seeing it now. Puffing one’s chest and declaring worth is surely true in the sense of one on the receiving end. The reality is that collecting compensation as a company continues to bleed becomes a contributing factor. I think all pilots are highly valuable but when a business model does not substantiate the expenses, the cards start to fall. I think NK management made some terrible business decisions and here we are.

The pilots didn't unilaterally decide to pay themselves more. The company and the union agreed to a CBA. The pilots took a discount for exactly the reasons you are alluding to, by taking below average pay. It is management's job to turn a profit. They failed miserably and continue to fail.

Additional 11 lease terminations announced this week.

current fleet plan 118.



sorry if this was posted already.

American Airlines requests notices in Spirit bankruptcy proceedings.

https://www.reuters.com/business/ame...gs-2025-12-07/

what does that mean?

my opinion, they are looking for additional chances to
Purchase parts and pieces like the Chicago gates.

Front of the queue in the liquidation sale ? I’d speculate there’s no way AA would be allowed to acquire the entire business in an acquisition

First of all American can't afford the $3B+ in added debt that would come with a full acquisition as they can't even afford to make interest payments on their existing debt. With margins so tight right now in the industry, this is the worst time in the last 15 years for airline debt acquisitions. Certainly there are some assets worth buying from Spirit, but acquiring the whole entity is just dumb for the cost in an industry where everyone fights for 1% more margins. Plus the creditors aren't going to just let the assets go to another airline for below liquidation value because they have some sentimental feelings about "selling Spirit whole".

It will be easier for airlines to just make offers for what they want, instead of acquiring the entire financial mess.