Spirit this week asked the court overseeing its bankruptcy to approve the bidding process for a planned auction of 20 Airbus A320 and A321 aircraft.
The Florida-based ultra-low-cost airline made the request in a filing on Wednesday, according to Reuters, and indicated that a potential sale could generate over half a billion dollars. Spirit proposed selling off the aircraft late last year but needs the bankruptcy court’s permission before moving forward.
Spirit is in the process of shrinking its fleet to reduce costs. It has already been authorized by the court to reject leases for certain aircraft.
CSDS Asset Management has agreed to buy all 20 aircraft for $533.5 million, the airline said in its filing. If the court signs off on the auction, Spirit will solicit competing offers starting at $554 million under an agreement with CSDS.
The auction and sale would take place in April.
Spirit filed for bankruptcy protection for the second time in August. In addition to offloading aircraft, it has cut routes, withdrawn from certain markets, furloughed workers, and signed a new labor agreement with its pilots that includes a temporary pay cut.
