Posted by bjhess 16 hours ago
I was doing a two hour flight monthly for business, 2 hours each way. Frontier was about half the cost of more premium airlines. The times were good and predictable. I never checked anything and maybe rarely I’d buy a snack. Now I won’t claim that it was “comfortable” but it was predictable, inexpensive and kind of efficient all of which sort of creates a ‘comfort.’ It was a flying bus and it was ok at that.
Somewhere, I think when there became competition for the ultra discount airlines, the staff culture changed and it seemed not uncommon to encounter an employee that resented the customers. Spirit had multiple reported incidents of crew filming customers and just being generally antagonistic. Basically they hire service people that generally don’t have to provide much service and it becomes ”extra work” when they do;worse they often see a price tag associated with the “extra work” and it’s not reflected in their compensation
And it was cheap, so you could book a next day flight without paying multiples in premium.
It was fun and affordable to fly out of state in the morning, spend a day exploring another place and get back at night.
Great idea in theory but…
One of the creditors that piloted their exit from the first bankruptcy also provided on $80M out of a $270M line of credit secured by assets Spirit needed to survive (an RCF was backed by their right to take-off and land at LGA amoungst other thinfs)
1 week before the 2nd bankruptcy, Spirit drew against the entirety of that line of credit.
During the 2nd bankruptcy, besides rolling large amounts the debt owed to them from the 1st bankruptcy (so Spirit would need to pay it back before other creditors), they had the proceeds of plane sales go towards... interest payments on their RCF and paying back additional financing from the 2nd bankruptcy.
The creditors leading the 2nd bankruptcy also sold the lease to Spirit's largest hangar on April 2nd, but did a similar thing again: instead of the cash going towards operations, it went to the creditors who'd led both bankruptcies.
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Seeing as they refused the government's bailout, I'm guessing this is doomed as well, but interesting stuff for a non-finance person