Spirit Airways filed on Monday for Chapter 11 chapter safety, months after a federal decide blocked the funds airline’s proposed merger with JetBlue.
The corporate, which is predicated in Florida, revealed on Monday an open letter to those that’ve booked tickets for future flights. Flights, ticket gross sales and different operations will proceed as regular, the airline stated.
“Crucial factor to know is which you can proceed to e book and fly now and sooner or later,” the letter stated.
The airline filed in U.S. Chapter Court docket for the Southern District of New York, saying in an accompanying press launch that it sought to restructure and cut back its debt.
JetBlue and Spirit had proposed a merger, signing an settlement in July 2022, a deal that the low cost airways stated would enhance their potential to draw clients away from bigger rivals.
However they collectively introduced in March 2024 that they’d terminate the deal, saying they had been unlikely to realize authorized and regulatory approval previous to the July 2024 merger deadline. The Division of Justice had sued to dam the merger.
A supermajority of the corporate’s bondholders had voted in favor of the submitting, CEO and President Ted Christie stated in a press release.
He positioned the restructuring as a “vote of confidence” in Spirit and its long-term planning.
“This set of transactions will materially strengthen our steadiness sheet and place Spirit for the long run whereas we proceed executing on our strategic initiatives to rework our Visitor expertise, offering new enhanced journey choices, larger worth and elevated flexibility,” he stated.
Spirit stated it expects the restructuring course of to be accomplished by the primary quarter of 2025.
