Bankruptcy court approves lifeline financing

Spirit Airlines won court approval on Friday for a $475 million lifeline and a $150 million payout from its largest aircraft lessor, as the budget-strapped airline tries to stabilize itself after its second bankruptcy since November.

The U.S. Bankruptcy Court for the Southern District of New York approved $475 million in debtor-in-possession financing and a $150 million loan, a lifeline that bankrupt companies can use to continue operating. Air Trap and rejection of 27 aircraft leases. Spirit said Friday it would provide $200 million immediately to the carrier.

Spirit is cutting dozens of routes, has announced plans to reduce its fleet and last month announced it would furlough nearly a third of its flight attendants to cut costs. The airline is in talks with the pilots union and is asking that group for cuts of about $100 million.

“We are pleased to have reached another important milestone in our restructuring, representing continued progress towards securing a successful future for Spirit,” Spirit CEO Dave Davis said in a statement Friday.

Spirit’s accumulated problems in recent years: Engine recall, a failed purchase JetBluean increase in labor and other costs and a shift in consumer tastes towards more luxurious offerings.

Spirit has spent more than a year trying to offer passengers roomier seats and other fare packages beyond cheap tickets and à la carte add-ons like seat selection and carry-on luggage that it has known about for years.