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Spirit Airlines receives court approval to maintain normal operations amid second bankruptcy

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Spirit Airlines receives court approval to maintain normal operations amid second bankruptcy
Policy
Webp davis
Dave Davis, Spirit’s President and Chief Executive Officer | Spirit Airlines

Spirit Airlines has announced it will continue its scheduled commercial passenger flights without interruption after receiving court approval to support ongoing operations, despite filing for Chapter 11 bankruptcy protection for the second time in a year.

The carrier’s recent bankruptcy filing created uncertainty about its future and led to increased share prices for competitors like Frontier Airlines. However, Spirit Airlines stated that normal operations will proceed, following approval from the US Bankruptcy Court for the Southern District of New York on motions related to its voluntary restructuring process.

Dave Davis, President and CEO of Spirit Airlines, said: "We are pleased to have reached this first milestone in our restructuring process, which will support normal operations as we take decisive action to ensure that Spirit continues delivering the best value in the sky for years to come."

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Davis also commented on the tools now available under Chapter 11 protection: "the many new tools now available to us, we can continue to implement our transformation to build a stronger foundation and future." The approved motions permit Spirit Airlines to keep issuing and honoring flight tickets and loyalty points while continuing payments to staff and vendors.

As part of its restructuring efforts, Spirit is making adjustments at a strategic level by reducing its fleet size and maintenance obligations. The airline aims for long-term sustainability by optimizing its network and concentrating more resources on key markets. This includes increasing service frequencies from focus cities while decreasing its presence elsewhere.

Spirit Airlines has also set up a dedicated website to keep stakeholders informed about developments during its restructuring. According to the site’s homepage, the company’s primary objective is "to build a stronger foundation and future for America’s leading value airline."

In terms of customer experience, Spirit plans to expand premium travel options but maintains that accessibility remains central to its mission. The duration of the company’s stay under Chapter 11 protection remains uncertain.

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