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A Spirit Airways plane undergoes operations in preparation for departure at Austin-Bergstrom Worldwide Airport on February 12, 2024 in Austin, Texas.
Brandon Bell | Getty Photos
Spirit Airways stated Monday it can delay deliveries of recent Airbus planes and plans to put off about 260 pilots in an effort to spice up liquidity.
“These steps are clearly not ones we need to take, however they’re obligatory to make sure a powerful and worthwhile future for Spirit,” CEO Ted Christie stated in a letter to workers on Monday.
Spirit stated it can delay all Airbus plane it has on order that had been scheduled for supply from the second quarter of 2025 to the tip of 2026. As a substitute, it can take supply of the planes in 2030 and 2031. lease plane – one every within the second and third quarters of subsequent yr – nor deliberate deliveries for 2027 by means of 2029, Spirit stated.
The finances provider stated the delay would enhance its liquidity by about $340 million over the subsequent two years.
“Delaying these plane provides us the chance to reset the enterprise and concentrate on our flagship airline whereas we adapt to modifications within the aggressive surroundings,” Christie stated in a information launch.
Miramar, Florida-based Spirit has been on the lookout for methods to extend liquidity and persuade traders it’s heading in the right direction to take action because it struggles with the grounding of lots of its Airbus belongings plane due to a Pratt & Whitney engine recall. The deliberate takeover JetBlue Airways fell aside earlier this yr after a federal decide dominated in January that the deal could be anticompetitive.
The airline stated on March 29 that it’s going to obtain month-to-month funds by means of the tip of 2024 to compensate for the grounded Pratt & Whitney engines, which might enhance liquidity to between $150 million and $200 million.
The trial furlough would come into impact in September, Spirit stated on Monday. The airline already had furloughs for flight attendants and there may be “no plan” for furloughs for cabin crew, their union, the Affiliation of Flight Attendants, advised members on Monday. Spirit is closing its crew base in Atlantic Metropolis, New Jersey and reassigning personnel.
Spirit’s Airbus supply slots are prone to be in excessive demand. Airways have adjusted their hiring and coaching in latest weeks, citing a shortage of planes — a pointy change from pilot shortages that worsened as journey demand slumped after the worst of the pandemic.
United Airways The pilots’ union stated final month that the corporate will supply pilots unpaid depart subsequent month because of late-arriving planes Boeing. The airline stated it additionally dropped Boeing’s Max 10 jets from its fleet plan as a result of it was unclear when regulators would certify the planes. United declined to touch upon whether or not it can use Spirit’s Airbus supply slots.
An Airbus spokeswoman stated the slots may very well be put again available on the market, however she declined to touch upon “any discussions we might or might not be having with varied clients.”
The Air Line Pilots Affiliation, Spirit’s pilot union, stated Monday it’s exploring voluntary measures that might restrict the variety of pilot furloughs.
“Mixed with the retirement of our A319 fleet and the continuing difficulty with the Pratt & Whitney GTF engines, the airline is confronted with extra pilots than is critical for its operations,” stated Ryan Muller, president of the Spirit ALPA division, in an emailed assertion. “The implications of the corporate’s introduced resolution are deeply disturbing for our complete pilot group.”
Spirit stated within the submitting that it plans to launch its subsequent quarterly and full-year monetary steerage subsequent week. First quarter outcomes are scheduled to be reported earlier than the market opens on Could 6.
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Spirit Airways will delay Airbus orders and furlough 260 pilots
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