Spirit Airlines Ch.11
#32
That is kind of funny. Everyone is screaming about inflation, the economy is awful, yet the legacies can't sell enough of their premium products. I swear it feels like we're living in the Upside Down sometimes.
#33
Gets Weekends Off
Joined APC: Dec 2021
Posts: 599
Consumers are more value oriented, they dont mind spending more until to get something that doesn't suck.
Chipotle is doing well McDonald's isn't, for example.
I'm sure our main customers (im f9) have been hurt by inflation much more than DL.
#35
Line Holder
Joined APC: Feb 2023
Posts: 63
The average consumer makes more money now than they did before covid. They also pay more for groceries at the store. It’s just that they blame the government for inflation and they credit themselves for wage increases, so the narrative is that they’re being crushed by the government. Airfare has *not* inflated significantly since covid, so more people are more able to afford it than they were before.
The economy is doing exceptionally well as a whole right now. Essentially every other country would prefer ours over theirs. However, there are always winners and losers, even when the economy is good. The winners are buying up premium products like crazy, and the losers are stuck in a bind of high inflation and low paying jobs. People doing well are going to be a lot quieter than people struggling. But the idea that the economy *as a whole* is struggling is complete nonsense.
#36
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Joined APC: Feb 2019
Position: baller, shot caller
Posts: 1,015
Millennials and gen z are very much into playing the status game, moreso than the older generations.
It looks cool on social media
#38
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Joined APC: Apr 2019
Posts: 226
There is no incentive for the lender to do a refinance. The lender has investors who are expecting that money and they have a fiduciary obligation to their clients over Spirit. Any refinance they did would be ridicoulously costly and just stave off BK for a short period of time.
Spirit can't raise money in the capital markets and they can't raise through a share offering. NK is in a tough position unfortunately.
Also the CEO has to say they aren't considering BK because if they said they did the number of people booking away or canceling would end the airline.
Spirit can't raise money in the capital markets and they can't raise through a share offering. NK is in a tough position unfortunately.
Also the CEO has to say they aren't considering BK because if they said they did the number of people booking away or canceling would end the airline.
Could they sell off planes to pay off the debt payment next year and let the airline bleed down to a smaller size. Maybe 150 planes and 2000-2200 pilots? Or would Chapter 11 or worse be next?
#39
If Spirit is unable to secure a refinance deal what would the airline look like if the doors don't close?
Could they sell off planes to pay off the debt payment next year and let the airline bleed down to a smaller size. Maybe 150 planes and 2000-2200 pilots? Or would Chapter 11 or worse be next?
Could they sell off planes to pay off the debt payment next year and let the airline bleed down to a smaller size. Maybe 150 planes and 2000-2200 pilots? Or would Chapter 11 or worse be next?
#40
Gets Weekends Off
Joined APC: Dec 2018
Posts: 461
Exactly! I’m sure the lenders would rather work out a financing deal that benefits them, rather than wait on chapter 11 where they might get 50c on the dollar.
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