Spirit Airlines unions have accepted a deal that involves pay cuts for flight crews as well as matching pay cuts for executives that the airline believes will give it enough cash-on-hand to be eligible for its next infusion of debtor-in-possession financing. The deal still requires union member ratification.
The struggling airline, in its second bankruptcy of the year, has cut hundreds of flights and laid off large parts of its staff as well as working to unload about half of its fleet. Layoffs so far have included about 1,800 flight attendants, 270 pilots and 150 administrative jobs, with numbers of captains downgraded to first officer. More are scheduled, although the new agreement may change the numbers.
Over the course of the current bankruptcy, the discount airline has ended service to about 18 cities and cut back flights at those remaining, saying it will concentrate on its best-performing services. It’s also adding a new city, Key West, Florida, which it will serve three times a week from Fort Lauderdale over the winter months.
While Spirit has been known as one of the deepest discounters (if you don’t add too many extras to its ‘Bare Fare’), its leaders say they see its future in a new role as a premium carrier, although few details indicate how that would happen and how it would differentiate itself from other carriers in that market.
