Spirit Airlines cuts flights in 12 cities as United, rivals circle
A Spirit Airlines Jet overcomes two United Airlines aircraft at Newark Liberty Airport in New Mark, New Mark on March 23, 2018.
Gary Hershorn | Getty Images
Spirit Airlines serves in a series of USA, while fighting to survive in this fall. In the meantime, opponents surround their customers and one is preparing to completely close the budget travel symbol.
United Airlines On Thursday, Fort Lauderdale, Florida and Orlando made a series of new flights in cities where the spirit of Las Vegas, Houston and Chicago operates as well as Florida’s main base.
In a news bulletin, “If the Spirit suddenly dismisses, it will be incredibly destructive, so we add these flights to give its customers to other options if they want or need.” He said.
The new service starts on January 6.
Last week Frontier AirlinesThe second largest budget airline in the US behind the Spirit announced 20 new ways competing with the soul.
Meanwhile, in October, the soul comes from New Mexico, Albuquerque; Birmingham, Alabama; Boise, Idaho; Chattanooga, Tennessee; Columbia, South Carolina; Portland, Oregon; In a statement to CNBC on Wednesday, the carrier, Salt Lake City, as well as Oakland, San Diego, Sacramento and San Jose in California. On October 16, Georgia broadcasts plans to start service at Macon.
“We apologize to our guests for any discomfort caused by our guests, and we will reach to report their options, including repayment,” said Spirit, E -Post. ” He said.
Some of United’s additional flights are serving between the New York region and Columbia and Chattanooga. United also adds additional flights between Houston, Chicago and Los Angeles, as well as a few days of round -trip, such as Orlando, Fort Lauderdale, New Orleans and Las Vegas to Los Angeles and Chicago.
According to TD Cowen analyst Tom Fitzgerald, Frontier has the maximum seat with the spirit, while United has 18%.
A few analysts said they expect full service airlines that they will benefit from the problems of Spirit. Many of these carriers have large global networks and basic economy to serve customers, competing with Spirit and other low -cost airlines.
Larger Airlines “Developing Settlement Product (Premium, Free Wi-Fi, Flight Fun) and Network Expansion Consumers are increasingly choosing more and more network airlines Delta Melius Research Analyst Conor Cunningham wrote in a note on Wednesday.
Return to court
Spirit Airlines applied to the second episode 11 The bankruptcy protection within a period of less than a year last week continued high costs when he saw weaker demand than expected and left his previous bankruptcy in March.
The carrier did not make more painful, deeper cuts in bankruptcy for the first time, and now he is facing these choices.
After submitting the second bankruptcy petition, the soul said it would reduce its network last week and will shrink its fleet and reduce costs “hundreds of millions of dollars” per year.
“It was clear that there is more work and there was more tools for the future of the future, since Dave Davis, CEO of Spirit Davis, said in a news bulletin, just because of our previous restructuring aimed at reducing the financial debt of the soul and increasing the equity capital.” He said.
In a court in December, Spirit predicted a net profit of $ 252 million this year. However In AugustInstead, he said he lost about 257 million dollars since March 13 after the end of June 11.
In the early August, the soul warned that he could not survive for a year unless he did not significantly increased his money.
He also said that the credit card processor was looking for additional collateral. Later, he borrowed 275 million dollars under the Doner Credit Facility and said that the card processor could hold up to 3 million dollars a day from the airline. Even before bankruptcy, the soul had planned to throw hundreds of additional pilots in this fall.
