{"id":61188,"date":"2024-04-08T18:04:00","date_gmt":"2024-04-08T12:34:00","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=61188"},"modified":"2024-04-08T17:21:01","modified_gmt":"2024-04-08T11:51:01","slug":"spirit-airlines-postpones-airbus-aircraft-new-deliveries-layoffs-260-pilots","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2024\/04\/08\/spirit-airlines-postpones-airbus-aircraft-new-deliveries-layoffs-260-pilots\/","title":{"rendered":"Spirit Airlines Postpones Airbus Aircraft New Deliveries, Layoffs 260+ Pilots"},"content":{"rendered":"\n

MIRAMAR, FLORIDA-<\/strong> Spirit Airlines (NK)<\/a> announced today that it has agreed with Airbus<\/a> to postpone the delivery of all aircraft orders slated for the second quarter of 2025 through the end of 2026 to 2030-2031. <\/p>\n\n\n\n

The deferrals exclude the direct-lease aircraft expected for delivery in the second and third quarter of 2025, one each. This arrangement with Airbus will strengthen Spirit’s liquidity by about $340 million over the next two years. No changes are made to the aircraft orders scheduled for delivery by Airbus in 2027-2029.<\/p>\n\n\n\n

\"Spirit
Photo: By Tom\u00e1s Del Coro from Las Vegas, Nevada, USA – N619NK Spirit Airlines Airbus A320-232 s\/n 5517, CC BY-SA 2.0, https:\/\/commons.wikimedia.org\/w\/index.php?curid=77926311<\/figcaption><\/figure>\n\n\n\n

Spirit Airlines Defers Airbus Deliveries<\/h2>\n\n\n\n

Due to grounded aircraft owing to Pratt & Whitney<\/a> GTF engine availability issues and aircraft deferrals for 2025 and 2026, Spirit plans to furlough approximately 260 Pilots effective September 1, 2024.<\/p>\n\n\n\n

As previously disclosed, Spirit has entered into a compensation agreement with Pratt & Whitney concerning its GTF engines, anticipated to enhance Spirit’s liquidity by an estimated $150 million to $200 million <\/strong>over the duration of the agreement. Additionally, Spirit will assess utilizing its existing financeable asset base to increase liquidity in the forthcoming months.<\/p>\n\n\n\n

“This revision to our agreement with Airbus is a vital component of Spirit’s comprehensive strategy to fortify profitability and reinforce our financial position,” stated Ted Christie, Spirit’s President and Chief Executive Officer. “Postponing these aircraft deliveries allows us to recalibrate the business and concentrate on our core airline operations while adapting to shifts in the competitive landscape. <\/p>\n\n\n\n

Moreover, augmenting our liquidity provides added financial resilience as we guide the Company toward a profitable future. We thank our partners at Airbus for their ongoing support and dedication to Spirit’s long-term prosperity.”<\/p>\n\n\n\n

\"Spirit
Photo: Spirit Airlines<\/figcaption><\/figure>\n\n\n\n

Spirit’s Tough Decisions and Forward Planning<\/h2>\n\n\n\n

Christie expressed, “I’m incredibly proud of our committed Spirit team for their perseverance and dedication throughout recent years. Regrettably, due to our grounded fleet and postponed deliveries, we’ve had to make the tough choice of furlough pilots. <\/p>\n\n\n\n

We’re striving to safeguard our team members while also fulfilling our responsibility to achieve positive cash flow and thrive as a healthy, growth-oriented company in the long run. I thank the Spirit team for consistently delivering our guests affordable fares and exceptional experiences.”<\/p>\n\n\n\n

The Airbus adjustment also extends the exercise dates for optional aircraft included in Spirit’s purchase agreement by two years. There is no alteration to the number of aircraft on order or Spirit’s options for additional aircraft.<\/p>\n\n\n\n

As previously disclosed, Spirit has engaged Perella Weinberg & Partners L.P. and Davis Polk & Wardwell LLP as advisors. The company has been and will continue to take prudent measures to ensure the resilience of its balance sheet and ongoing operations, including exploring options to refinance upcoming debt maturities and bonds.<\/p>\n\n\n\n

Stay tuned with us. Further, follow us on social media for the latest updates.<\/p>\n\n\n\n

Join us on Telegram Group <\/a>for the Latest Aviation Updates. Subsequently, follow us on Google News<\/a>.<\/p>\n\n\n\n

Stay tuned with us. Further, follow us on social media for the latest updates.<\/p>\n\n\n\n

Join us on Telegram Group <\/a>for the Latest Aviation Updates. Subsequently, follow us on Google News<\/a>.<\/p>\n\n\n\n

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Spirit Airlines to Get $200 Million Amid P&W Engine Problems<\/a><\/blockquote>