Overview

• Spirit filed a motion to reject leases on 87 Airbus aircraft, with a hearing set for Oct. 16 and proposed surrenders beginning Oct. 27, according to U.S. Bankruptcy Court filings.
• Separately, a restructuring agreement with AerCap returns 27 additional jets and includes a $150 million payment to Spirit, resolving a dispute over future Airbus deliveries.
• If the court approvals are granted, Spirit projects operating about 100 aircraft versus roughly 214 pre-filing, a cut executives say should save hundreds of millions of dollars annually.
• The company has been exiting more than a dozen U.S. airports and suspending about 40 routes, with November schedules showing double-digit reductions in flights and seats versus last year.
• Spirit says it has negotiated commitments for about $475 million in debtor-in-possession financing, is in talks with unions on cost cuts, and plans furloughs of roughly 1,800 flight attendants and 270 pilots.