Beep
Well-Known Member
I hope it works out for them then, the employees.
Spirit back in chapter 11
- Thread starter DropTank
- Start date
I hope it works out for them then, the employees.
Sculprit
Well-Known Member
Hurry up Chasen. He’s almost at the finish line.
It sucks when the union sends the emails explaining that if liquidation happens, the self-funded health insurance stops. so employees are on the hook for paying the insurance claims if the airline doesn't.
HRA/FSA balances are forfeited upon liquidation.
No COBRA in liquidation.
LTD/STD terminate in liquidation.
everything in the employer's 401k plan goes into a trust that is protected from other creditors.
although all active pilots become immediately 100% vested if they aren't fully vested (been on property less than 6 years)
however any employer contributions 16% direct contribution and any employee contributions that haven't been transferred from employer to 401k trust... at the time of liquidation, well those amounts become a creditor in bankruptcy , you'll have to get in line with all the other creditors to get them...
401k loans become immediately repayable in full upon termination of the 401k plan in liquidation.
So if you've left and still have your 401k with Spirit, strongly consider rolling them over to your new employer's 401k.
so is that a run on the bank?
HRA/FSA balances are forfeited upon liquidation.
No COBRA in liquidation.
LTD/STD terminate in liquidation.
everything in the employer's 401k plan goes into a trust that is protected from other creditors.
although all active pilots become immediately 100% vested if they aren't fully vested (been on property less than 6 years)
however any employer contributions 16% direct contribution and any employee contributions that haven't been transferred from employer to 401k trust... at the time of liquidation, well those amounts become a creditor in bankruptcy , you'll have to get in line with all the other creditors to get them...
401k loans become immediately repayable in full upon termination of the 401k plan in liquidation.
So if you've left and still have your 401k with Spirit, strongly consider rolling them over to your new employer's 401k.
so is that a run on the bank?
Honestly…a good pair of dice or a Ouija board.
I don’t remember much from my below-average state school education, but I remember an airline operations class where we split into groups and ran a simulated airline. My group went bankrupt and got an A. Definitely unrelated, the prof went into teaching after his airline went away.
CoffeeIcePapers
Well-Hung Member
Banks run on fractional reserves, meaning they loan out most of the money and don't have it on hand to cover a bank run. 401k should have all of the money/assets in hand.
Box hauler
Well-Known Member
Well if C suite bonuses say anything, going into chapter 11 gives you an A in the real world too.
You’re not wrong…ugh.
Autothrust Blue
”…trusting ze process…”
I read a book about the saga of the American bankruptcy (Airlines; I suppose I had to be more specific) and I remember agreeing, disturbingly, with Bob Crandall. They invited him to their “yay, we did it” party and Crandall said something to the effect/along the lines of of “sorry - what exactly are we celebrating here? You ran the company into bankruptcy, broke every deal you had with everyone, and we’re having a party?”
Indeed.
jtrain609
Antisocial Monster
How many pilots per aircraft does Spirit staff?
ahw01
Well-Known Member
Lets start with the sign on the door
skypilot6
Well-Known Member
16-17 currently
ClearedForOption
Displaced... again.
It’s hard to read, but it pretty sure that I flew like 15 legs with the name at the bottom of that sign back @ Mesa like a million years ago.
