UPDATE: In the hours since publication of this article, Spirit management has filed a second bankruptcy petition, only five or so months after emerging from the previous case, which focused on restructuring its debt. CEO Dave Davis told press that this time, it will be a ‘comprehensive” restructuring. The carrier has lost $186 million since leaving bankruptcy, and has warned investors it might not survive.
During the previous bankruptcy proceedings, Frontier Airlines, which had been Spirit’s original merger partner, offered to resume negotiations on a merger, but Spirit management turned down that offer; it remains to be seen if it will be on the table again.
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Spirit Airlines may be skirting the edge of a second bankruptcy or possible shutdown and Avelo has shut down its West Coast network, but at least one Ultra Low-Cost Carrier seems to be doing well enough for a sizable expansion, possibly at Spirit’s expense.
Frontier Airlines may also have financial pressures of its own, but it’s going after new business by adding 20 routes covering 14 cities. The heart of the plan appears to be getting vacationers from northern parts to destinations in Florida, Texas, Mexico, El Salvador and Guatemala. The new routes were announced without any pullbacks from other areas.
And, not coincidentally, all of the new routes are in direct competition with services by Spirit.
The routes, which launch starting in November, with some starting in December and February, include seasonal routes that are returning, but some have not been flown for several years.
The airline is also making a pitch to flyers loyal to other airlines; it’s offering Gold status in its program for $69 to loyalty members of Spirit, Southwest, Alaska or JetBlue. Gold will soon include complimentary space-available updates to planned first-class and premium seating.
