Budgetary carrier Spirit Airlines On Friday, he said that it has filed for fresh insolvency conservation months after emerging from one. Chapter 11 Reorganization,
No-frills airline Said that it intends to conduct business normally during the reorganization process, which means that passengers can continue to book trips and use their tickets, credit and loyal points. The company said Employee and contractor Will still be paid.
Spirit Chairman and CEO Dave Davis said that the previous chapter 11 petition of the airline focused on reducing the loan and raising capital, and since exiting the process in March, “It has become clear that a lot of work is to be done and many more equipment are available for the future for the future.”
One in Quarterly report Earlier this month, Spirit Aviation Holdings, the original career company, stated that there was “adequate doubt” about its ability to continue as the next year’s concern-which is accounting to run out of money. Spirit cited “adverse market status”, the company faced its most recent restructuring and other attempts to revive its business.
This included weak demand for domestic holiday travel, which the soul said in the second quarter of its financial year, and “uncertainty in its business”, which Florida company hopes to continue to continue “for at least 2025”.
Known for its no -frills, low -cost flights on a fleet of bright yellow aircraft, the soul has struggled to recover and compete since the Kovid -19 epidemic. Increasing operation cost and rising loans eventually led the company Look for bankruptcy protection in November. By the time of that chapter 11 filing, the airline had lost more than $ 2.5 billion since the beginning of 2020.
When the airline emerged from insolvency protection in March, the company successfully restructured some of its debt obligations and received new financing for future operations. Spirit has continued other cost-cut efforts-which includes a plan of about 270 pilots and the first 140 captains have been downgrained in the coming months.
The company said in its quarterly report that Furlofes and Dowgrades announced last month, which came into effect on October 1 and November last month. They also followPrevious furlAndjob cutsLast year before the company’s bankruptcy filed.
Despite efforts to cut these and other costs, Spirit has said that it needs more cash. As a result, the company said that it could also sell some aircraft and real estate.
And as a discount carrierStruggle to competeAlong with big airlines-many of them have taken away budget-conscious customers through their own teard offerings-trying to tap in the growing market.For more Upskale tripsIt is now offering flight options with tier prices, high-value tickets are coming with more features.
Spirit’s aircraft fleet is relatively young, which has also made the airline an attractive acquisition target. But such purchase efforts from budget rivalsJetbAndMarginalEarlier both were unsuccessfulAnd duringInsolvency process.
According to travel search engine, US, Caribbean, Mexico, Central America, Panama and Colombia operates 5,013 flights for 88 destinationsSkyscanner.net
