My reply was in reply to a guy who said Spirit liquidating won't affect his paycheck.. sure there's a million economic dynamics that go into whether UAs hiring went down this year because of reason X or Y or Z.. all conjecture is fair. But my question that was "does Spirit liquidating have an upward or downward pressure on wages?", the reply was "it won't affect mine".. and maybe your points are valid, maybe Spirit will liquidate and the job market won't destabilize.. but the point is, any excess of pilots looking for a job, without an equivalent excess of jobs.. is a downward pressure on wages.. so no, celebrating Spirits demise because you think it's good for your seniority or something, does ignore the total pressures that puts on the job market, even if it is just 2,000 pilots.. (then add in if creditors cut off high risk airlines right now, that's when things spiral where Avelo and Breeze lose the ability to get any funding to continue operations, F9 and JB spiral into furloughing 50%, Allegiant and Sun Country, Alaska, hell even AA and WN, need access to credit right now).. so am I engaging in hyperbole? Perhaps.. perhaps exaggerating broader market risk... But what if it does happen?? You just say "woops, cheered for the wrong team" from the furlough line?? Just saying.. it's a low risk, sure, but a risk that should be acknowledged..

As for the math about Ted Cruz's district alone could suffer $500mil+ in damages if Spirit liquidates? Sure, also hyperbole, perhaps.. I have no way of knowing how many Spirit pilots, gate agents, baggage handlers, etc live in his district.. but once unemployed, none of them pay federal/state/local income taxes, and all of them collect unemployment (a budget positive item becomes budget negative).. then take the number of flights Spirit operates near his district, times 176 seats, times 80-90% load factor.. and that's the number of people not flying to his district on any given day.. multiply that number by what the average tourist spends when visiting his district (lodging, food, entertainment, business, and commerce).. that's a dollar amount that Spirit brings no longer visiting his district.. "oh but pax will fly someone else".. if his home airport has an airline with seats to spare to bring them.. and then his constituents that will travel in the future, will spend 50-100% more on their tickets (based on the studies of Den, Phx, Msp) and that's hundreds of dollars times however many airline travellers live in his district, that go from being spent on local things to spending on necessary air travel..

So yes, his district is halfway between SAT and AUS, and it's not inconceivable to see hundreds of millions of dollars leave (or not come) to his district because of the demise of Spirit airlines...

so Spirits been losing money for 61 months (to be fair first 2 years of Covid everyone was losing money) and you think in 2 months by July they can turn it around?

White House mulls using Defence Production Act in Spirit takeover

New details from CBS...Getting crazier by the headline.

Most surprising aspect is Spirit and United already went to the White House early April to sell Newark slots in a liquidation plan but white house rejected it

Yeah - that Defense Production Act scenario (if true and not fake news) doesn't even pass the smirk test. In no way is Spirit even tangentially connected to any element of national defense unless it becomes a military charter airline.

“Trump officials rejected that idea. The federal government owns slots, which would be preserved to make Spirit more attractive for a future owner, one of the sources said.”

“The Pentagon would use Spirit's excess capacity for transporting troops, military cargo or other missions, sources told CBS News.”

You forgot the last line of that article "Until they are acquired".

Essentially the government is going to subsidize NK until someone buys them.

Yes, you’re right and the other debtors will most likely only agree if there seems to be a high probability of a sale before liquidation, so they can get their money back.

“Under a bailout plan being discussed for Spirit, the government would lend Spirit $500 million and become the top debtor in the bankruptcy pecking order”

JetBlue could get them for pennies on the dollar.

It does not…
His first paragraph is complete garbage that makes no logical sense.
The second paragraph is the typical virtue signal that anyone who dares comment on anything spirit and isn’t overly positive is a scumbag POS. I have not seen one person gloating or celebrating Spirit going down on any forum btw.
This is followed by an incoherent diatribe about more made up crap that makes no sense.

The actual point of the comment was that he wants you to know what a great person he is because he calls out the “haters”.

jetblue is next one out......

this will age as well as the "emergency" tariffs did...

Next one out? They have lots of assets, they aren’t going anywhere.

so confident your ceo had to publicly deny ch11 plans. reminds me terribly about ted in court....

I don’t work there. If they go to chapter 11, they’ll be bought. They aren’t going chapter 7

Cold Hard Reality: NK is negligible in the grand scheme of the industry and economy. Only reason this is even on the table is political optics related to the Iran war.

No Iran war, no bailout.

If NK was another company in a less high profile industry, also no bailout. This is not 2008, and NK isn't GM or CitiGroup.

But if no Iran War Spirit would not need a bailout right now. The confirmation plan (not saying it wouldn't have led Spirit right back here) was on track before the high oil prices.

Could be. The point was that the reason is political optics, not "doing the right thing" or because if NK fails it will quickly drag all of the legacies into liquidation within a few weeks. This is not 2008 and NK is not a megabank.

It is political optics now…….as was the merger blockage between JetBlue and Spirit. Neither then nor now was it about “doing the right thing.”

Lol no was not. Not even close. You are funny guy

The final nail has been positioned on the "coffin" for some time now.

The Iran war and fuel prices doubling is not the demise of Spirit. Incompetent management, declaring bankruptcy and swindling the shareholders twice, Pratt engine issues, terrible customer service and reliability, that’s what brought Spirit down. People think twice when booking their flights on Spirit because they’re not sure if they’ll actually make it to their destination.

The high fuel prices just sped up the inevitable

it will be interesting to see if Spirit can manage to swindle the government as well.