OCTOBER 24, 2024 — MAJOR TROUBLE HEAD
2025 will be problematic, as the company plans to sell 23 Airbus jets and cut millions in costs.
A recent SEC filing states, “As part of its continued strategy to return to profitability, the Company has identified approximately $80 million of annualized cost reductions that it plans to begin implementing in early 2025. These cost reductions are driven primarily by a reduction in workforce commensurate with the Company’s expected flight volume.”
APRIL 9, 2024 — 260 PILOTS
Spirit Airlines has announced it plans to defer Airbus deliveries and lay off 260 pilots as part of a cost-containment initiative.
The airline will defer the scheduled deliveries to 2030-2031. As a result of the deferrals, along with quality issues with Pratt & Whitney, it is furloughing pilots effective Sept. 1, 2024.
The airline is blaming the Department of Justice for blocking JetBlue from acquiring Spirit.
AUGUST 1, 2022 — CONFIRMED: JET BLUE ACQUIRES SPIRIT
JetBlue Airways Corporation has acquired Spirit Airlines for $3.8 billion to become the fifth-largest carrier in the United States. The deal was announced after Spirit and Frontier ended their merger agreement.
Look for headcount reductions in back-office and support functions as duplicative departments are eliminated in the name of cost-reduction synergies. This also extends to vendors who are not willing to shave their prices further.
JULY 27, 2022 — SPIRIT TERMINATES MERGER WITH FRONTIER. IS JET BLUE NEXT?
Spirit Airlines is continuing merger discussions with JetBlue after walking away from a merger agreement with Frontier Airlines.
According to Frontier Chairman William Franke, "While we are disappointed that Spirit Airlines shareholders failed to recognize the value and consumer potential inherent in our proposed combination, the Frontier Board took a disciplined approach throughout the course of its negotiations with Spirit. We were focused on offering the appropriate value for Spirit while prioritizing consumers and the best interests of Frontier, our employees, and shareholders."
MARCH 2, 2022 — Original post…
Denver, Colorado-based Frontier Airlines, an ultra-low-cost carrier is purchasing Miramar, Florida-based Spirit Airlines to create the nation's fifth largest airline and capitalize on economies of scale. Of course, the deal is subject to regulatory approval.
According to Spirit CEO Ted Christie, "This transaction is centered around creating an aggressive ultra-low fare competitor to serve our guests even better, expand career opportunities for our team members and increase competitive pressure, resulting in more consumer-friendly fares for the flying public."
Even with the happy talk about additional employees being required as the combined airline expands, that does not mitigate the risk to employees who are associated with duplicate departments or positions that will be shed to effect cost-savings synergies in administrative functions.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?