Ultra low-cost carrier Spirit Airlines files for bankruptcy
(Reuters) - No-frills air travel pioneer Spirit Airlines (NYSE:SAVE ) filed for bankruptcy protection on Monday, after struggling with a long run of quarterly losses, failed merger attempt and upcoming debt maturities.
Spirit, known for its bright yellow livery, is the first major U.S. airline to file for Chapter 11 since 2011.
It has not posted a full-year profit since 2019 and has been facing an uncertain future after the collapse of its $3.8 billion planned merger with JetBlue Airways (NASDAQ:JBLU ) in January.
Below is a list of events, starting with a long-drawn bidding war for the airline two years ago:
Feb. 7, 2022 Spirit Airlines, along with budget carrier
peer Frontier Group Holdings (NASDAQ:ULCC ), unveiled plans
to create the fifth-largest U.S. airline in a
$2.9 billion tie-up to tighten competition
against traditional carriers.
April 5, 2022 JetBlue Airways made an unsolicited $3.6
billion bid for Spirit, snarling its merger
plans with Frontier and starting a U.S.
low-cost carrier battle.
May 2, 2022 Spirit board rejected JetBlue's offer, saying
it had a low likelihood of winning approval
from government regulators on antitrust risks.
May 16, 2022 JetBlue launched a hostile all-cash takeover
bid for Spirit Airlines, two weeks after the
rejection of its earlier offer.
May 19, 2022 Spirit urged shareholders to reject a hostile
bid by JetBlue, saying it was "a cynical
attempt to disrupt" its merger with Frontier .
May 23, 2022 Spirit CEO Ted Christie said it is unlikely
shareholders would vote against its proposed
merger with Frontier, to remain a stand-alone
entity if shareholders reject.
June 2, 2022 Frontier agreed to offer a break-up fee of
$250 million in a bid to secure its $2.9
billion bid for Spirit.
June 28, 2022 Spirit again rebuffs JetBlue citing antitrust
concerns, weeks after it raised offer with
higher break-up fee and new ticking fee,
amounting to a $3.8 billion bid.
July 27, 2022 Spirit Airlines canceled its sale to Frontier
Group Holdings after Spirit shareholders
balked at supporting it, weeks after Frontier
declined to further raise its bid, drawing
curtains on the bidding war with JetBlue.
JetBlue prevailed in the months'
July 28, 2022 long bidding war for Spirit Airlines after the
ultra-low-cost carrier
accepted its $3.8 billion buyout
deal.
Oct. 19, 2022 Spirit shareholders voted in favor of JetBlue
Airways' $3.8 billion takeover offer.
Dec, 9, 2022 Spirit offered as much as a 43% cumulative
weighted average pay raise to its pilots over
two years.
Jan. 10, 2022 Pilots at Spirit voted to ratify the contract,
which represents an economic gain of $463
million or 27% over the next two years for the
pilots.
March 7, 2023 The U.S. Justice Department filed suit to stop
JetBlue from buying Spirit, saying the planned
merger "will lead to higher fares and fewer
seats, harming millions of consumers on
hundreds of routes."
March 21, 2023 California, along with three other states,
joined the U.S. Justice Department lawsuit
aimed at preventing the JetBlue-Spirit deal.
Oct. 31, 2023 The Justice Department urged a federal judge
to block the deal at the antitrust trial,
arguing that the deal would lead to higher
fares and fewer flights.
Jan. 16, 2024 A federal judge blocked the merger after
agreeing with the Justice Department that the
deal was anticompetitive and would harm ticket
buyers.
Jan. 19, 2024 Spirit said it is looking at options to
refinance its debt and is not considering
restructuring, since its shares had been
falling on investor concerns about its
financial future after the DoJ decision.
Also said its deal to merge with JetBlue
remained intact, with the two companies
appealing the federal judge's ruling.
March 4, 2024 JetBlue and Spirit scrapped their $3.8-billion
merger agreement, with the low-cost carriers
saying there was no path forward after a U.S.
judge blocked the deal in January on
anti-competition concerns.
April 8, 2024 Spirit announced deal with Airbus to delay all
aircraft deliveries scheduled from the second
quarter of 2025 through 2026 and furlough 260
pilots, to boost cash.
July 1, 2024 Spirit appointed Fred Cromer as its new chief
financial officer, a month after its previous
CFO Scott Haralson left the airline to join
car rental company Hertz Global Holdings (OTC:HTZGQ ) as
its finance chief.
July 30, 2024 Spirit Airlines unveiled plans to tap into a
growing demand for premium travel, chasing
high-margin revenue, to mitigate cost
pressures and boost its earnings.
Oct. 22, 2024 The Wall Street Journal reported Frontier
Airlines is exploring a renewed bid for Spirit
Airlines.
Oct. 30, 2024 Spirit announced additional furloughs of about
330 pilots on Jan. 31, 2025, in efforts to cut
costs and shore up its finances.
Nov. 12, 2024 Spirit Airlines said is in constructive
discussion with its creditors and continues to
explore strategic alternatives to improve
liquidity, amid reports of merger talks with
Frontier breaking down.
Nov. 18, 2024 Spirit Airlines filed for bankruptcy
protection, after struggling with a long run
of quarterly losses, failed merger attempts
and looming debt maturities.
Source: Investing.com
