Originally Posted by nene

its not a judge that has to approve, it's the creditors committee that is formed to represent the creditors. They have to be convinced that a rejuvenated Spirit will pay them back more money than just letting them be liquidated. The judge just oversees the process to make sure the laws are followed.

Originally Posted by CatPilot1

You two need a vacation together; though make it quick if trying to nonrev, bc we selling middle seats?

Originally Posted by BlueWater

With Q3 estimates so grim, somewhere in the ballpark of -300m, what’s next?



Product:

They say profits from new products can take upwards of a year to realize. I hope the new products do well, I’m not sure it is enough to be honest. It doesn’t quite seem as premium as they think it is, and our operational performance will shy away potential new customers.



If the brand wants to be looked at as more premium the customer service must follow. WIth contracted employees above and below the wing everywhere except FLL, this seems difficult to standardize. The employees don’t quite have as much skin in the game and don’t have as much of an incentive to create a nice experience.



Fleet:

Orders for 2025/26 are deferred until after 2030. This is probably needed while we get our financials in order, however, I think it could have helped with all the groundings next two years. Fly the new deliveries with the new product and make money, while Pratt pays a daily fee for the parked airplanes. Now we have to scale back the network and hope they do it right.


We’ve already performed sale lease backs on many planes. This does give additional liquidity now, and one could say this is just a financial transaction. However, if it were to come do bankruptcy we really don’t have many assets. Previously, If a bankruptcy acquisition occurred, we had a larger order book. Now, with the recent sale leaseback agreement of our 27/28 orders to AerCap we have even less assets and order book.. so less appealing to another airline looking to acquire us as a whole naturally or in a bankruptcy. This isn’t a good position to be in asset wise.



Faulty Engines:

-2024 EOY, there will be 30-35 parked

-2025 High of 67, with an average of 50 parked

-2026 According to the town hall, an average of 50 parked through the end of 2026


Pilots:

End of 2024 we will have 215 A/C, 35 parked, 15 pilots per plane is 2760.

2025/26 we will have 219 A/C, avg of 50 parked, 15 pilots per plane is 2535.

With 3450 pilots on property today, we are clearly overstaffed. Attrition isn’t as high as planned with most airlines not hiring for the remainder of the year. I can’t help but think there will be further furloughs?



Debt:

In addition to Quarterly losses for the foreseeable future, we have ALOT of debt coming due. If it’s not refinanced, we’ll be on a path to bankruptcy to reorganize. If it is refinanced and pushed down the road, we are still on a path to bankruptcy with the current trend and forecast of losses.



I just don’t see how this can work. Am I missing something? Can someone make this work?

Originally Posted by Ed Force One

Because when they lost their sweetheart deal with Frontier, they cried like babies, said "I'm not playing anymore, poopyheads" and stopped caring at all. Those of us that were here saw the results of that. And still are.

Why we're not back with Frontier again, I don't know. But they completely checked out during the B6 merger and the damage was done.

Originally Posted by Alexjones

As we approach Chapter 11 bankruptcy proceedings and engage in refinancing negotiations, it is crucial to recognize that this process represents our sole opportunity to restructure and refinance our debt. Implementing additional pilot furloughs, especially for a second time, would significantly undermine confidence among creditors and jeopardize our refinancing efforts.

Pilots are a critical resource, and further furloughs would exacerbate the challenges related, Demonstrating a clear path to profitability is essential, regardless of the number of grounded aircraft. The forthcoming transformation plan, while intended to showcase progress, may be perceived as largely symbolic and might not fully address stakeholder concerns.

Without Chapter 11, other potential outcomes for the business could include liquidation, where assets are sold off to pay creditors, or a prepackaged bankruptcy, which involves negotiating a restructuring plan with creditors before filing.

To ensure the success of our restructuring efforts and maintain operational stability, we must avoid any further layoffs. Additional furloughs could signal deeper systemic issues and risk undermining our negotiations and overall viability.

Originally Posted by Alexjones

As we approach Chapter 11 bankruptcy proceedings and engage in refinancing negotiations, it is crucial to recognize that this process represents our sole opportunity to restructure and refinance our debt. Implementing additional pilot furloughs, especially for a second time, would significantly undermine confidence among creditors and jeopardize our refinancing efforts.

Pilots are a critical resource, and further furloughs would exacerbate the challenges related, Demonstrating a clear path to profitability is essential, regardless of the number of grounded aircraft. The forthcoming transformation plan, while intended to showcase progress, may be perceived as largely symbolic and might not fully address stakeholder concerns.

Without Chapter 11, other potential outcomes for the business could include liquidation, where assets are sold off to pay creditors, or a prepackaged bankruptcy, which involves negotiating a restructuring plan with creditors before filing.

To ensure the success of our restructuring efforts and maintain operational stability, we must avoid any further layoffs. Additional furloughs could signal deeper systemic issues and risk undermining our negotiations and overall viability.

Originally Posted by checkgear

This reads like ChatGPT lol

Stop sucking on the hopium. More furloughs are all but guaranteed with 60+ aircraft getting parked.

Originally Posted by nene

its not a judge that has to approve, it's the creditors committee that is formed to represent the creditors. They have to be convinced that a rejuvenated Spirit will pay them back more money than just letting them be liquidated. The judge just oversees the process to make sure the laws are followed.

Originally Posted by Busbuster

Not exactly,

The company will propose an exit plan, the debtors need to PROVE liquidation would return more to their pockets.

Here’s where it gets interesting, operating cash and leased aircraft cannot be put into the liquidation formula.

So you see exactly what’s going on, assets are being put under lease and the cash is moved to the operating fund.

Operating cash can be used for the company’s exit plan.

Ted has put a few airlines into CH11, he’s a pro.