Travelling can be very chaotic and exhausting during the holiday season. People are racing to return to their hometowns or take vacations, and you can see them everywhere, from bus stops to train stations and airports. Amidst this chaos, news of a US-based airline declaring bankruptcy is surfacing. As the holiday season gets near, there are worries about travel chaos as Spirit Airlines, a US-based airline, is apparently getting ready to declare bankruptcy.
Reason Behind The Airlines Filing For Bankruptcy
The Wall Street Journal has reported that Spirit Airlines is in advanced talks with bondholders and could declare bankruptcy in the coming weeks. Further, Frontier and Spirit, a company based in Dania Beach, Florida, were in discussions about renewing merger talks; however, Frontier has decided against it in the foreseeable future, as reported by Metro UK.
In 2022, Spirit and Frontier were reportedly discussing merging, but Spirit’s investors were persuaded by JetBlue’s greater offer. The $3.8 billion (approx. ₹3200 billion) acquisition of Spirit by JetBlue was blocked by a federal judge because of competition concerns. In October, Spirit Airlines sold 23 aircraft to GA Telesis for $519 million (approx. ₹4400 crore) after facing a shutdown and halting growth plans.
Moreover, Spirit Airlines’ stock dropped 39% to $1.8 (approx. ₹151) yesterday, bringing its total market decline this year to nearly 80%. The Spirit plane was hit by gang gunfire in Haiti, injuring a flight attendant and forcing the airline to divert to the Dominican Republic, which led to the bankruptcy report.
Also Read: Iconic Tupperware Files For Bankruptcy; Moms Worldwide Are Heartbroken
More About Spirit Airlines
Spirit Airlines is a prominent American ultra-low-cost airline that offers regular flights throughout the United States, the Caribbean, and Latin America. The airline’s headquarters are located in Dania Beach, Florida. It ranked eighth among North America’s passenger carriers as of 2023.
With crew bases in Atlanta, Chicago-O’Hare, Dallas/Fort Worth, Detroit, Fort Lauderdale, Houston-Intercontinental, Las Vegas, and more, Spirit also served 83 destinations in Central America, the Caribbean, South America, and the United States.
Free Spirit is the name of Spirit Airlines’ three-tiered frequent flyer status program, which consists of Free Spirit Member, Silver (2,000 points annually), and Gold (5,000 points annually).
If you’ve been to the US, have you ever travelled by Spirit Airlines?
Cover Image Credit: Wikimedia Commons
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