Budget airline files for bankruptcy as travellers face more travel chaos | World | News
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Another budget carrier has reportedly collapsed, joining the beleaguered Spirit Airlines, which ceased all operations earlier this month.
Magnicharters, a low-cost Mexican airline, filed for bankruptcy protection in the First District Court in Mexico City earlier this week, according to reports.
The decision comes after the airline suspended all flights last month, although it was initially stated that the suspension would only last for two weeks.
Just a few days ago, UK charter airline Zenith Aviation Limited, a leading private jet operator, also stopped flying.
The Magincharters carrier initially cited “operational issues” as the reason for the cancellations, but its Air Operator Certificate was later temporarily revoked after it was unable to cover basic expenses, including technical support, maintenance, spare parts and staff training.
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Magnicharters had not issued any public statements as of Friday, but its website did not show available flights and directed customers to a helpline with questions, according to the Independent.
Earlier this month, Spirit Airlines canceled all its remaining flights as it failed to emerge from bankruptcy. Spirit, previously valued at up to $5.5 billion on the stock market and famous for its distinctive bright yellow plane, ceased all operations with its last flight from Detroit to Dallas on May 2.
“For more than 30 years, Spirit Airlines has played a leading role in making travel more accessible and bringing people together while increasing affordability in the industry,” CEO Dave Davis said in a statement. he said. The announcement follows two bankruptcy filings in two years that allowed Spirit to settle its debts to lenders.
FILE – A Spirit Airlines 319 Airbus approaches Manchester Boston Regional Airport for landing in Manchester, NH, on June 2, 2023 (AP Photo/Charles Krupa, File) (Image: AP)
What followed was a frantic, last-ditch effort to cut costs by cutting routes, wringing concessions from unions and a potential financing arrangement with the Trump administration that could give the airline a lifeline. “This is extremely disappointing and an outcome none of us wanted,” Davis said.
Days after Spirit Airlines closed at midnight, the lawyer for the bankrupt budget airline appeared before a bankruptcy judge and apologized to price-conscious customers who might have difficulty finding affordable flights in his absence.
“We apologize, especially to Americans for whom prices may have been completely sold out,” Spirit’s attorney, Marshall Huebner, said in court, thanking all the passengers who have trusted the airline throughout its 34 years of operation, many of whom “could not otherwise afford air travel.”
