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Seth Miller @wandrme.paxex.aero

In an additional filing from Sunday Spirit Airlines basically says it is AerCap's fault that it had to file the second Ch11 petition so quickly. "...Spirit concluded that it had no choice but to quickly seek the protections of chapter 11."

While Spirit was initiating and continuing to have productive negotiations with its lessors and secured bondholders, on August 25, Spirit’s largest lessor (AerCap and its affiliates) unexpectedly sent Spirit a notice of termination of committed lease agreements covering 36 aircraft scheduled for delivery between 2027 and 2028, and a notice of default with respect to 37 leases covering existing aircraft in the fleet. Spirit disagrees that any termination right or event of default existed under any of these leases, and disputes the validity of the notices. Spirit was required to, and did, disclose those notices in a SEC Form 8-K filed on Friday, August 29, 2025. Concerned that the disclosure of these purported default notices by its biggest lessor could prompt other actions from other counterparties, including other aircraft lessors, Spirit concluded that it had no choice but to quickly seek the protections of chapter 11. While Spirit is continuing to have negotiations with AerCap to resolve these and other issues, it stands ready to litigate the validity of the notices and damages that Spirit has suffered as a result of AerCap’s actions.
sep 1, 2025, 11:55 pm • 3 0

Replies

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Gregg @greaterlaker.bsky.social

The litigation on this one should be interesting.

sep 2, 2025, 1:17 am • 0 0 • view
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Seth Miller @wandrme.paxex.aero

The new plan calls for "broad changes" and a significant network redesign enabling the carrier to "rightsize its fleet to match capacity with profitable demand. Doing so will significantly shrink Spirit’s overall fleet...leading to hundreds of millions of dollars in annual operating savings."

sep 1, 2025, 11:55 pm • 1 0 • view
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Seth Miller @wandrme.paxex.aero

Also, only three of the 23 planes Spirit planned to sell to GA Telesis were delivered prior to the bankruptcy filings. So that deal is dead and the company is once again shopping the aircraft around.

sep 1, 2025, 11:55 pm • 3 0 • view
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Seth Miller @wandrme.paxex.aero

Wrote up some more details on the new Spirit bankruptcy filing. Gonna be a tough slog to make this one work the way it wants. paxex.aero/spirit-retur... $FLYY

sep 2, 2025, 12:25 pm • 4 2 • view
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Blaine Nickeson @bnickeson.bsky.social

Surely this is a death knell, right? You can’t shrink your way into profitability, especially not while the sharks are circling?

sep 2, 2025, 12:00 am • 0 0 • view
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Seth Miller @wandrme.paxex.aero

We talk about it a lot more on this week's @moredotsmorelines.com episode. I'm skeptical of shrinking to profitability, especially with more competition out there also trying to capture the point-to-point traffic. And the level of cuts they're talking about is significant.

sep 2, 2025, 12:05 am • 3 0 • view