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Spirit Airlines faces backlash over executive pay raises amid pilot furloughs

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Spirit Airlines faces backlash over executive pay raises amid pilot furloughs
Policy
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Ivy Ericksen Publisher | AVweb

Spirit Airlines pilots and their union have raised concerns over the airline’s decision to issue furlough notices to pilots while simultaneously approving salary increases for several top executives.

In a July 1 8-K filing, the carrier announced pay raises for four of its C-suite executives and its CEO. At the same time, 200 pilots received furlough notices—a plan the airline initially laid out in April due to aircraft engine issues and slower growth plans.

According to the filing, Spirit announced the appointment of Frederick Cromer as executive vice president and chief financial officer, replacing Scott Haralson who left last month. Spirit detailed salary increases and bonuses for other C-suite members who would receive base salaries to the tune of $950,000, $650,000, $525,000 and $500,000, beginning July 1.

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Meanwhile, the low-cost carrier made a deal with Airbus to delay all deliveries until 2030-2031 in an effort to save money. Spirit says the move would improve its liquidity by $340 million over the next two years.

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