Spirit Airlines Emerges from Bankruptcy
Spirit Airlines has emerged from bankruptcy with significantly less debt, greater financial flexibility, and better positioned for long-term success.
As part of the restructuring, the company has also received a $350 million equity investment from existing investors to support Spirit’s future initiatives, including investments to give guests n “enhanced travel experiences and greater value”. Spirit’s Plan of Reorganization was confirmed by the United States Bankruptcy Court for the Southern District of New York.
“We’re pleased to complete our streamlined restructuring and emerge in a stronger financial position to continue our transformation and investments in the Guest experience,” said Mr. Christie. “Throughout this process, we’ve continued to make meaningful progress enhancing our product offerings, while also focusing on returning to profitability and positioning our airline for long-term success. Today, we’re moving forward with our strategy to redefine low-fare travel with our new, high-value travel options.”
As part of its strategy going forward, the company has said it would shift its focus away from price-conscious guests to more affluent travelers by offering a more premium experience. The move is estimated to generate 13% more revenue per passenger. The airline plans to redesign its loyalty program and enter into alliances with other carriers.
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