Spirit back in chapter 11

Seems like the markets are predicting a Frontier merger. Sides met this week - would be massive help for spirit and frontier both. Granted that’s assuming spirit liquidates with the bad debt and frontier takes the good assets. Otherwise I have no idea how spirit survives. Surely they can’t think a quick restructure on aircraft leases is all they need.

frontier after hours shot up 10% on the report
 
“Spirit Airlines bosses want to cut pilots' union-negotiated pay as it seeks to recover from its second bankruptcy filing in under a year.

If the two sides can't reach a deal by October 1, Spirit could ask the courts to change or reject the union contract, under a section of Chapter 11 bankruptcy law.

[The MEC chair] said that past bankruptcy proceedings show there is "a significant advantage to reaching a consensual agreement" with the company, rather than letting the bankruptcy court impose terms.

‘Unfortunately, these are the tough calls we must make to emerge stronger,’ [CEO Dave] Davis said.”

The article calculates an average 30k per capita reduction in pay for the pilat group.

 
Executive NameYearBonus TypeAmount
Bendoraitis, John2023Performance Bonus (discretionary)$940,500
Bendoraitis, John2023Performance Non-Equity Incentive$579,616
Bendoraitis, John2024Performance Bonus$1,163,225
Bendoraitis, John2024Performance Non-Equity Incentive$639,858
Bendoraitis, John2025Bankruptcy Retention Bonus$1,000,000
Bendoraitis, John Total$4,323,199
Canfield, Thomas C.2024Performance Bonus$939,063
Canfield, Thomas C.2024Performance Non-Equity Incentive$506,870
Canfield, Thomas C. Total$1,445,933
Christie III, Edward M.2023Performance Bonus (discretionary)$1,771,875
Christie III, Edward M.2023Performance Non-Equity Incentive$1,134,573
Christie III, Edward M.2024Performance Bonus$4,390,759
Christie III, Edward M.2024Performance Non-Equity Incentive$1,440,570
Christie III, Edward M. Total$8,737,777
Cromer, Frederick S.2024Performance Bonus$375,492
Cromer, Frederick S.2024Performance Non-Equity Incentive$277,508
Cromer, Frederick S.2025Bankruptcy Retention Bonus$1,200,000
Cromer, Frederick S. Total$1,853,000
Davis, Dave2025Bankruptcy Retention Bonus$2,900,000
Davis, Dave Total$2,900,000
Haralson, Scott M.2023Performance Bonus (discretionary)$1,410,000
Haralson, Scott M.2023Performance Non-Equity Incentive$600,837
Haralson, Scott M.2024Performance Bonus$270,000
Haralson, Scott M.2024Performance Non-Equity Incentive$171,350
Haralson, Scott M. Total$2,452,187
Klein, Matthew H.2023Performance Bonus (discretionary)$855,000
Klein, Matthew H.2023Performance Non-Equity Incentive$574,571
Klein, Matthew H.2024Performance Bonus$534,937
Klein, Matthew H.2024Performance Non-Equity Incentive$527,036
Klein, Matthew H. Total$2,491,544
McMenamy, Brian J.2024Performance Bonus$105,750
McMenamy, Brian J. Total$105,750
Wiggins, Rocky2025Bankruptcy Retention Bonus$1,000,000
Wiggins, Rocky Total$1,000,000
Grand Total$25,309,390


Let’s start here.
 
Executive NameYearBonus TypeAmount
Bendoraitis, John2023Performance Bonus (discretionary)$940,500
Bendoraitis, John2023Performance Non-Equity Incentive$579,616
Bendoraitis, John2024Performance Bonus$1,163,225
Bendoraitis, John2024Performance Non-Equity Incentive$639,858
Bendoraitis, John2025Bankruptcy Retention Bonus$1,000,000
Bendoraitis, John Total$4,323,199
Canfield, Thomas C.2024Performance Bonus$939,063
Canfield, Thomas C.2024Performance Non-Equity Incentive$506,870
Canfield, Thomas C. Total$1,445,933
Christie III, Edward M.2023Performance Bonus (discretionary)$1,771,875
Christie III, Edward M.2023Performance Non-Equity Incentive$1,134,573
Christie III, Edward M.2024Performance Bonus$4,390,759
Christie III, Edward M.2024Performance Non-Equity Incentive$1,440,570
Christie III, Edward M. Total$8,737,777
Cromer, Frederick S.2024Performance Bonus$375,492
Cromer, Frederick S.2024Performance Non-Equity Incentive$277,508
Cromer, Frederick S.2025Bankruptcy Retention Bonus$1,200,000
Cromer, Frederick S. Total$1,853,000
Davis, Dave2025Bankruptcy Retention Bonus$2,900,000
Davis, Dave Total$2,900,000
Haralson, Scott M.2023Performance Bonus (discretionary)$1,410,000
Haralson, Scott M.2023Performance Non-Equity Incentive$600,837
Haralson, Scott M.2024Performance Bonus$270,000
Haralson, Scott M.2024Performance Non-Equity Incentive$171,350
Haralson, Scott M. Total$2,452,187
Klein, Matthew H.2023Performance Bonus (discretionary)$855,000
Klein, Matthew H.2023Performance Non-Equity Incentive$574,571
Klein, Matthew H.2024Performance Bonus$534,937
Klein, Matthew H.2024Performance Non-Equity Incentive$527,036
Klein, Matthew H. Total$2,491,544
McMenamy, Brian J.2024Performance Bonus$105,750
McMenamy, Brian J. Total$105,750
Wiggins, Rocky2025Bankruptcy Retention Bonus$1,000,000
Wiggins, Rocky Total$1,000,000
Grand Total$25,309,390


Let’s start here.
I am with you "in spirit" on the full pay to the last day; however, it may be a necessity to explore concessions as a means to protect your retreat from the airline. I think it is much easier to get a job when you have a job. Just my thoughts today.
 
I am with you "in spirit" on the full pay to the last day; however, it may be a necessity to explore concessions as a means to protect your retreat from the airline. I think it is much easier to get a job when you have a job. Just my thoughts today.
It potentially harms your pay prospects at the next airline, as you now have to compete against that concessionary rate.
 
“Spirit Airlines bosses want to cut pilots' union-negotiated pay as it seeks to recover from its second bankruptcy filing in under a year.

If the two sides can't reach a deal by October 1, Spirit could ask the courts to change or reject the union contract, under a section of Chapter 11 bankruptcy law.

[The MEC chair] said that past bankruptcy proceedings show there is "a significant advantage to reaching a consensual agreement" with the company, rather than letting the bankruptcy court impose terms.

‘Unfortunately, these are the tough calls we must make to emerge stronger,’ [CEO Dave] Davis said.”

The article calculates an average 30k per capita reduction in pay for the pilat group.


They’re also furloughing 1,800 flight attendants, which is approximately a third of that bargaining unit. Evidently they’d been running time off schemes for some time (they never went away after covid-time) and now find themselves overstaffed with big benefit bills.
 
It potentially harms your pay prospects at the next airline, as you now have to compete against that concessionary rate.
When I was at XJT we were in the middle of contract negotiations and voted down a proposal. At the same time PSA had taken concessions to get more flying, in the middle of a profitable period for the industry. It nuked our leverage.
 
Also consider the damage if the pilot group agrees to the concessions, then Frontier buys the place up to operate as a separate entity as opposed to merging the two airlines, then uses the Spirit contract to whipsaw the still negotiating Frontier group?

Not a good situation either way it goes.
 
Also consider the damage if the pilot group agrees to the concessions, then Frontier buys the place up to operate as a separate entity as opposed to merging the two airlines, then uses the Spirit contract to whipsaw the still negotiating Frontier group?

Not a good situation either way it goes.

Never EVER trust management.

Full pay to the last day...
 
Also consider the damage if the pilot group agrees to the concessions, then Frontier buys the place up to operate as a separate entity as opposed to merging the two airlines, then uses the Spirit contract to whipsaw the still negotiating Frontier group?

Not a good situation either way it goes.

Both Frontier and Spirit have language in their CBA that compels a merged seniority list (and contract) in the event of a buyout or a merger.
 
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