Spirt filed for Chapter 11 again

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12-03-2025 | 06:50 AM

#461

rickair7777

Prime Minister/Moderator

Joined: Jan 2006

Posts: 44,841

Likes: 652

From: Engines Turn or People Swim

Quote:

Originally Posted by nene

Mgmts try to juggle all the balls until they start hitting the floor. Miss/late payroll, lease payments, etc. Then one day a fueler realizes they aren't being paid and planes start getting repo'd.

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.

12-03-2025 | 06:58 AM

#462

FLYBOYMATTHEW

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Joined: Oct 2005

Posts: 730

Likes: 58

From: Office Chair

Quote:

Originally Posted by DirkDiggler9999

I think there’s an argument to speak about pay rates and the decline of airline performance at NK. Pay rates climbed drastically to keep employees on property. Fares did not climb to the level pay rates did and arguably helped put NK into a bad financial situation. Fares are very sensitive regardless what airline we talk about. A small fare increase can easily chase customers away. The product itself is an issue too. Outside factors like fuel, ancillary revenues (which NK highly depends on), lease agreements, fees, maintenance, etc… are factors that also can contribute to negative financial performance. We can all pick out factors that hurt along the way. I do think pay rates, while good for the employees, hurt the bottom line but there were many other factors also.

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.

12-03-2025 | 10:20 AM

#463

DirkDiggler9999

On Reserve

Joined: Oct 2024

Posts: 168

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Quote:

Originally Posted by FLYBOYMATTHEW

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.

12-03-2025 | 12:12 PM

#464

JulesWinfield

Gets Weekends Off

Joined: Jan 2018

Posts: 2,817

Likes: 220

Quote:

Originally Posted by DirkDiggler9999

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.

12-04-2025 | 10:28 AM

#465

RiddleEagle18

Gets Weekends Off

Joined: Nov 2005

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Likes: 28

Additional 11 lease terminations announced this week.

current fleet plan 118.

sorry if this was posted already.

12-07-2025 | 10:31 AM

#466

RiddleEagle18

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Joined: Nov 2005

Posts: 2,689

Likes: 28

American Airlines requests notices in Spirit bankruptcy proceedings.

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

12-07-2025 | 10:41 AM

#467

SkyGodKing

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Joined: Sep 2025

Posts: 323

Likes: 210

Quote:

Originally Posted by RiddleEagle18

American Airlines requests notices in Spirit bankruptcy proceedings.

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

what does that mean?

12-07-2025 | 10:56 AM

#468

RiddleEagle18

Gets Weekends Off

Joined: Nov 2005

Posts: 2,689

Likes: 28

Quote:

Originally Posted by SkyGodKing

what does that mean?

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

12-07-2025 | 12:19 PM

#469

HoustonRockets

On Reserve

Joined: Jun 2025

Posts: 106

Likes: 33

Quote:

Originally Posted by RiddleEagle18

American Airlines requests notices in Spirit bankruptcy proceedings.

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

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

12-07-2025 | 02:59 PM

#470

FriendlyPilot

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Joined: Sep 2020

Posts: 1,556

Likes: 335

Quote:

Originally Posted by HoustonRockets

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.