13.11.2024 15:52
The famous Spirit Airlines, based in the state of Florida, has been driven to bankruptcy after failing to reach a conclusion in its discussions with Frontier Airlines. According to sources close to the company, Spirit Airlines is preparing to file for bankruptcy protection due to the unsuccessful merger talks with Frontier Airlines.
The economic crisis affecting the world has negatively impacted companies. Especially with the ongoing wars and the persistent economic crisis, companies are being driven to bankruptcy, and the latest news from the U.S. has shaken the markets. The airline company, founded in 1983, has officially filed for bankruptcy. The bankruptcy decision has shocked millions, while thousands of employees are facing the risk of being laid off.
According to a report by the Wall Street Journal, the famous Spirit Airlines, based in Florida, USA, founded in 1983, was driven to bankruptcy after failing to reach a result in discussions with Frontier Airlines. According to sources close to the company, Spirit Airlines is preparing to file for bankruptcy protection due to the failure of merger talks with Frontier Airlines.
EMPLOYEES PLACED ON UNPAID LEAVE
Following the announcement of the bankruptcy news, the company's shares fell. After the closing, the shares dropped by 39% to $1.80. While the stock has fallen by about 80% this year, the S&P 500 passenger airline index has risen by 52%. It has been noted that the company is in discussions with bondholders to create a bankruptcy plan that will gain the support of the majority of creditors.
THE COMPANY HAS DECIDED TO SELL AIRCRAFT
The report emphasized that Spirit is preparing to file for bankruptcy in the coming weeks.
Spirit Airlines had stated in October that it would place approximately 330 pilots on unpaid leave starting January 31 to reduce costs. The company has put 23 former Airbus aircraft up for sale for $519 million.