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U.S. competitors to Spirit Airlines are closely watching a Dec. 13 bankruptcy milestone for the ultra-low cost carrier that executives at multiple U.S. airlines say risks triggering an abrupt shutdown of its operations.
At least two major U.S. airlines are planning for a possible demise of the struggling low-cost carrier as early as Saturday, The Air Current is told. Each is accelerating plans to provide a schedule to backfill what would be Spirit’s cancelled flights along with rescue fares for Spirit customers who would be stranded by an abrupt end to its flying heading into one of the busiest travel periods of the year.
Senior executives at other U.S. airlines whose operations have less direct intersection with Spirit’s or whose fleets are too small to maneuver if it collapses, are also watching the Saturday milestone and see it as unlikely Spirit will receive the necessary capital injection. The airline has 428 flights scheduled on Dec. 13 and another 3,138 through Dec. 20, according to Cirium’s Diio.
“There is no truth to any rumors that we are preparing to cease operations. It is business as usual at Spirit and flights continue to operate normally,” a Spirit spokeswoman said in an emailed statement to TAC. “We are working closely with our debtor-in-possession (“DIP”) providers and other key stakeholders on a wide variety of issues to support the financial needs and future of the business, as we have been throughout our restructuring process. These ongoing discussions remain productive.”
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