Spirit’s recent Chapter 11 bankruptcy filing was directly triggered by an “unexpected” lease termination and default notice from AerCap, the world’s largest aircraft lessor, according to a declaration filed with the court.
The notice, which affects a total of 73 current and future aircraft, left the airline with “no choice but to quickly seek the protections of chapter 11.”
In the declaration, Fred Cromer, Spirit’s chief financial officer, detailed the events of Monday, Aug. 25. On that day, with no prior warning, AerCap sent two critical notices to the airline. The first terminated lease agreements for 36 Airbus A320neo family aircraft that were scheduled for delivery to Spirit in 2027 and 2028.
A second notice claimed events of default on leases for 37 aircraft that are already part of Spirit’s operational fleet, representing roughly a quarter of the ultra-low-cost carrier’s total fleet.
“Spirit disagrees that any termination right or event of default existed under any of these leases, and disputes the validity of the notices,” Cromer stated in the sworn declaration. He asserted that the airline was in full compliance with its obligations and that no payments were overdue.
The filing describes AerCap’s claims as “extraordinary” and alleges they were made without supporting evidence.
Immediate Catalyst
The carrier was required to disclose the notices in a public filing with the Securities and Exchange Commission (SEC) on Friday. According to Cromer, this public disclosure created a significant risk, as the airline became “concerned that the disclosure of these purported default notices by its biggest lessor could prompt other actions from other counterparties, including other aircraft lessors.” This concern was the immediate catalyst for the bankruptcy filing.
The airline has stated that it remains in negotiations with AerCap to seek a “holistic consensual resolution.”
However, the court documents make it clear that Spirit is preparing for a legal battle if discussions fail, stating it “stands ready to litigate the validity of the notices and damages that Spirit has suffered as a result of AerCap’s actions.”
Spirit filed for bankruptcy on Friday, the carrier’s second Chapter 11 filing in less than a year.
