Spirit Airlines is making tough decisions in bankruptcy while struggling to survive.
On Thursday, Florida-based Dania Beach asked the bankruptcy court to allow the lease of 87 Airbus A320 family aircraft to be denied and returned to the lessor. The request covers 19 A320CEOs, 65 A320NEOS and 3 A321NEOs.
This is two days after Spirit seeks court approval for a separate agreement with aircraft leasing giant AERCAP, returning 27 A320Neo aircraft to the company.
In August, when it filed for Chapter 2, Chapter 11 bankruptcy in less than a year, there were 114 aircraft in total, or more than half of the Spirit 214-Aircraft-Strong fleet.
FAQ: Spirit Airlines bankruptcy and how it might affect your travel
In other words, the number of plans to cut the aircraft spirit is equivalent to the size of the entire airline, i.e., the Soviet airline that replaces air or Panama.
The lease rejection also covers the spirit of the entire fuel-fuel A320Neo aircraft that have been plagued by problems with Pratt and Whitney gear engines. In August, the airline took root by 38 Pratt and Whitney-powered aircraft due to engine issues.
“Rejecting these leases will reduce the burden of unprofitable leases for the spirit, as well as the expense of maintaining and storing several aircraft that have been discontinued,” Fred Cromer, chief financial officer of the spirit, said in court filing Thursday.
He estimates that his mental savings will reach “hundreds of millions of dollars” every year.
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The spirit is being cut dramatically in an effort to survive its double immersion bankruptcy. The airline has left at least 13 destinations, from small markets such as Boise, Idaho to big cities such as Minneapolis.
Spirit chief commercial officer Rana Ghosh told TPG staff on September 26.
A spirit spokesman said Friday that the lease refused to allow airlines to “align our fleet with previously announced network adjustments.”
In November, Spirit will cut flights by nearly 19% and seats by 16%.
Spirit is also seeking high cost savings from pilots by December 1 and seeking solutions for about 1,800 flight attendants (one-third of their cabin crew ranking).
If all lease rejections are approved, the spirit will run 100 aircraft based on the number of fleets at the end of August. These aircraft will include 43 A320CEOs, 29 A321CEOS and 29 A321NEOS. All A319 and A320Neos have retired or returned to the lessor.
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