Spirit Airlines is quickly following through with a pledge to streamline its route system as management Thursday confirmed the elimination of service to a dozen U.S. cities early next month.
The cutbacks come less than a week after Spirit filed a fresh petition for Chapter 11 bankruptcy protection. The Dania Beach-based carrier emerged from bankruptcy last spring, but after wracking up sizable losses in the second quarter, returned to court in a bid to resolve various financial, fleet size and operational issues.
Effective the week of Oct. 2, the airline said it will no longer be serving the following cities:
- Albuquerque, New Mexico
- Birmingham, Alabama
- Boise, Idaho
- Chattanooga, Tennessee
- Columbia, South Carolina
- Oakland, California
- Portland, Oregon
- Sacramento, California
- Salt Lake City, Utah
- San Diego, California
- San Jose, California
The airline is aborting its plan to start service to Macon, Georgia, which was set to start Oct. 16.
Passengers who booked future flights to any of those cities are being notified and offered refunds, the airline said.
“We apologize to our Guests for any inconvenience this may cause and will reach out to those with affected reservations to notify them of their options, including a refund,” the airline said in a statement emailed to the South Florida Sun Sentinel. “We are grateful to the airports, business partners and community members in these markets who welcomed and supported us. We remain committed to offering high-value travel options and will continue to serve dozens of destinations throughout the U.S., Latin America and the Caribbean.”
In the email, the airline acknowledged the reductions are in step with the previously announced furloughs of 270 pilots and demotions of 140 captain to first officer. Those moves were disclosed before the second Chapter 11 bankruptcy filing, which took place last Thursday in the Southern District of New York.
United breaks out brass knuckles
The route reductions drew an instant response from Chicago-based United Airlines, which announced an expansion of its winter schedule to include routes that overlap Spirit’s network.
In a statement, United suggested its move was a public service with flight additions to 15 cities including Fort Lauderdale-Hollywood International Airport, Spirit’s home base, as well as to Orlando and Las Vegas. Those new flights will start Jan. 6. Tickets went on sale Thursday.
“If Spirit suddenly goes out of business it will be incredibly disruptive, so we’re adding these flights to give their customers other options if they want or need them,” Patrick Quayle, United’s senior vice president of Global Network Planning and Alliances, said in the statement.
Spirit was not amused.
“While we appreciate the obsession certain airline executives have with us, we’re focused on competing and running a great operation,” the airline said.
United’s move came after rival budget carrier Frontier Airlines of Denver, a perennial but unsuccessful Spirit suitor, added some 20 cities to its route system after Spirit filed for Chapter 11.
Stock delisted, top executives retained
On Tuesday, Spirit Aviation Holdings, Inc., the airline’s parent, said it was notified by the NYSE American stock exchange that its shares were being suspended from trading and that they would be delisted. In turn, the stock, which is expected to be ultimately canceled, started trading over-the-counter.
Separately, Spirit is paying retention bonuses to its top four executives including president and CEO Dave Davis, who is receiving $2.9 million, according to a regulatory filing. Davis joined Spirit just five months ago from discount carrier Sun Country Airlines of Minneapolis.
Bonuses are typical for companies seeking to work their way out of financial trouble,
Three other executives, Frederick Cromer, the chief financial officer; John Bendoraitis, the chief operating officer; and Thomas Canfield, the general counsel, each received bonuses that exceeded $1 million.
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