After reports of merger talks breaking down, Spirit Airlines in now filing for bankruptcy protection.
More than 28,000 people work for the discount airline, many of them at its headquarters in South Florida
āObviously Spirit has been going through some purchasing options with JetBlue and Frontier, looking at resurrecting some debt. This is what comes of it when you canāt do the things that you want to do, so you ask for protection, " said Dan Lindblade, President and CEO of the Greater Fort Lauderdale Chamber of Commerce.
While the prospect of bankruptcy is not ideal, Lindblade believes the company still has some options.
āTheyāve sold off some of their planes, theyāve furloughed some of their pilots. While thatās a concern, it shows that management is doing the right things to stop the bleeding,ā said Lindblade.
The airline insists nothing will change for guests and if a restructuring agreement is reached, the deal is not expected to impair creditors, employees, customers, vendors and suppliers.
A spokesperson told Local 10ā²s Layron Livingston, customers would still be able to book trips and fly like they do now.
āTheyāre still a low-cost carrier. Theyāre still going to provide their normal routes. For the employees here it is yet to be determined how that restructuring will occur,ā said Lindblade.
The company has been actively working to restructure, citing higher operating expenses this year compared to last year.
āEverything is ok. Iām keeping optimistic. We are making a lot of changes to improve the brand,ā said Marko Carmona, a Spirit employee.
The change in the companyās revenue comes after the changes in cancellation and change fees this May.
In the past, customers would pay fees ranging from $60 to $119 for any changes to their flights.
The change comes as Frontier Airlines created new fares to eliminate extra fees.
It has been a trying week for spirit. On Monday, one of its flights came under fire while landing in Port-au-Prince Haiti.
The Federal Aviation Administration put in a temporary ban on all flights from the U.S. to Haiti after the jet, flying from Fort Lauderdale-Hollywood International Airport, sustained gunfire while trying to land, injuring a flight attendant.
If a restructuring agreement is not reached, then all alternatives are on the table, according to the U.S. Securities and Exchange Commission filing.