The Air Line Pilots Association is calling on Spirit’s bondholders to continue funding the struggling carrier as it works to restructure and emerge from Chapter 11 bankruptcy protection.
In a letter to the bondholders made public on Tuesday, the pilots union highlighted the likely impact on Spirit’s 15,000 employees and the South Florida region if the carrier were to fold.
“Spirit may be in Chapter 11, but bankruptcy does not equate to collapse,” the letter states. “This process exists to allow companies to restructure their debt, stabilize operations, and emerge stronger. That is the purpose of this process.”
The message was aimed at Miami-based Citadel and other Spirit backers. Bloomberg reported this week that the bondholders are considering whether to continue their support, a decision that could dictate the future of the airline.
The letter was signed by ALPA President Jason Ambrosi and Ryan P. Muller, chairman of the Spirit Airlines ALPA Master Executive Council.
The union noted that Spirit’s pilots and flight attendants have made about $100 million in concessions during the bankruptcy process and asked the bondholders to show similar resolve.
“Liquidation would not be just a business outcome,” ALPA wrote. “It would mean a collapse that would eliminate jobs and permanently disrupt a community. If Spirit is liquidated, thousands of employees will lose their livelihoods. South Florida will lose one of its most important homegrown aviation employers. Families will be displaced. Small businesses connected to travel and aviation will suffer immediate harm. The regional and national ripple effects will be real and long-lasting.”
Spirit’s survival does not require “new ideas,” the union argued, only “honoring commitments” already made.
Spirit entered bankruptcy for a second time in August. Under the auspices of a U.S. bankruptcy court, it has drawn on funds from a debtor-in-possession financing facility of up to $475 million backed by the bondholders.
Over the last six months the carrier has laid off staff, furloughed pilots, and cut routes to reduce expenses and streamline operations.
