U.S. competitors are closely watching Spirit Airlines as it nears an important milestone in its bankruptcy and restructuring process, and at least two are reportedly readying for the airline’s shutdown as early as Saturday.
Spirit, which is operating under Chapter 11 bankruptcy protection, has until Saturday, Dec. 13, to secure additional funding through its debtor-in-possession financing facility.
The Air Current reported Friday that some rival airlines expect Spirit to miss the deadline and suspend its flights. At least two “major” carriers are preparing “rescue” flights to help transport passengers who will be left stranded if Spirit goes out of business, the website said.
The Air Current did not identify the two carriers.
Spirit filed for bankruptcy for a second time in August. In an effort to contain costs, it has furloughed hundreds of pilots, rejected aircraft leases, withdrawn from underperforming routes and markets, and laid off some operations and corporate staff.
Earlier this week, Spirit’s pilots approved temporary reductions in pay and benefits that are expected to save the carrier about $100 million per year.
The airline told The Air Current on Friday that it has no plans to stop flying over the upcoming weekend.
“There is no truth to any rumors that we are preparing to cease operations,” the carrier said. “It is business as usual at Spirit and flights continue to operate normally.”
Spirit has warned investors over the past few months that it may not survive the year as a going concern, but executives noted that such warnings are required by regulations and do not necessarily take into account the changes the company has made since August to remain viable.
