Spirit files for bankruptcy

Sucks, but expected. I think the ULCC model hit a limit. I think with the right management team and some reductions, they can make it out ok. First order of business is to clean house and sweep out their inept management team.
 
CoffeeIcePapers said:
Sucks, but expected. I think the ULCC model hit a limit. I think with the right management team and some reductions, they can make it out ok. First order of business is to clean house and sweep out their inept management team.
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From the perspective of an industry analyst/consultant, I think many of us were concerned about both NK and F9's continuing growth strategies. Even in large hub markets, demand has a ceiling, and legacy basic economy products cut into that pretty significantly - particularly in the hubs. Neither F9 nor NK can downgrade and focus on mid-sized and smaller markets because of their strategy of increasing gauge. Meanwhile, Breeze can serve a lot of these markets with 139 seats that the others simply have too much gauge to serve. Allegiant was rightfully conservative in their growth strategy, while Avelo has found some niche markets the other carriers missed that are doing surprisingly well.

The NK business model isn't bad, there's just too much ULCC capacity out there, and too many of those carriers are deeply Florida exposed. When Florida was shut down for the hurricane last month, that resulted in a cancellation of 63% of G4's total operations and 47% of those for Breeze.
 
Murdoughnut said:
From the perspective of an industry analyst/consultant, I think many of us were concerned about both NK and F9's continuing growth strategies. Even in large hub markets, demand has a ceiling, and legacy basic economy products cut into that pretty significantly - particularly in the hubs. Neither F9 nor NK can downgrade and focus on mid-sized and smaller markets because of their strategy of increasing gauge. Meanwhile, Breeze can serve a lot of these markets with 139 seats that the others simply have too much gauge to serve. Allegiant was rightfully conservative in their growth strategy, while Avelo has found some niche markets the other carriers missed that are doing surprisingly well.

The NK business model isn't bad, there's just too much ULCC capacity out there, and too many of those carriers are deeply Florida exposed. When Florida was shut down for the hurricane last month, that resulted in a cancellation of 63% of G4's total operations and 47% of those for Breeze.
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Spirit actually doubled down on Florida. They displaced a bunch of pilots to Florida bases, opened an Orlando and Miami base, after Covid. One of many mistakes management has made since then. Every earnings call since blames Florida weather and ATC.
 
CoffeeIcePapers said:
Spirit actually doubled down on Florida. They displaced a bunch of pilots to Florida bases, opened an Orlando and Miami base, after Covid. One of many mistakes management has made since then. Every earnings call since blames Florida weather and ATC.
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Yeah, Florida yields are garbage right now, and it's bringing everyone down. You have some large hub markets where you have upward of six carriers serving Orlando. Good for the consumer - not so much for the carriers.
 
CoffeeIcePapers said:
Spirit actually doubled down on Florida. They displaced a bunch of pilots to Florida bases, opened an Orlando and Miami base, after Covid. One of many mistakes management has made since then. Every earnings call since blames Florida weather and ATC.
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And it appears they MAY have learned their lesson, about 80% of the reductions and furloughs have come from the FL bases.

In other news, BK has been a long time coming, and IMO should have happened months ago. I'm happy we are "making progress" in dealing with our issues, but still worried what that progress will ultimately look like.
 
mikecweb said:
As someone born and raised in florida, i fixed that for you.
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There's a reason (probably more than one) you live as far away as you can while still being within the continental U.S...

1Q 2025 exit, and:
The chapter 11 process itself will not impact Team Member wages or benefits, which are continuing to be paid and honored for those employed by Spirit. Vendors, aircraft lessors and holders of secured aircraft indebtedness will continue to be paid in the ordinary course and will not be impaired.
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See: Spirit Airlines Announces Comprehensive Agreement to Deleverage Balance Sheet and Position the Company for Long-Term Success as a Leading Low-Fare Carrier
 
mikecweb said:
As someone born and raised in florida, i fixed that for you.

I have a ton of close friends that fly for spirit that this will greatly affect. I hope they make it through the other side or find someplace else to continue their career.
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I don’t disagree. But also the FL I moved to from Colorado in 2003 is vastly different in almost every way now. Politically, cost of living, population, etc.

I left FL in 2011, and had some good memories. But that version of FL is dead. My wife is a FL native, and she absolutely refuses to set foot back there unless it’s for someone’s funeral.
 
Autothrust Blue said:
We cancelled our December Florida trip, too (my partner's from the panhandle and we just don't need to go there rn).
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We were down in Tampa Bay over the weekend - I had a work event, but it was a chance for my wife and I to spend a night in St. Pete where we lived for 15-years. I had seen pictures of the debris, but wasn't prepared for just how much of it there was. Our old house was boarded up with a pile of cabinets and belongings out front. Yesterday we had brunch with two of our closest friends - they sold their Treasure Island home a month before Helene put 4' of water in their former house. It was going to be torn down for a mcmansion anyways, but still hard to see the house you raised your kids in get destroyed by nature like that.
 
it’s going to be painful… the fleet plan is to shed all CEOs and the only planes yellow will have left are the No Engine Option planes. Since that is a reduction from the 215 total / 96 CEO and 119 NEO planes currently on property to just 125 NEOs…
 
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