A major airline is set to sell its planes after it crashed into administration after 34 years in business. As well as cancelling all flights, it has been confirmed the company will also sell its spare engines and parts.
Spirit Airlines confirmed on Saturday (May 2) that it will shut down after failing to secure a $500 million (£368 million) rescue deal from theDonald Trumpadministration. The low-cost airline was emerging from a previous bankruptcy filing but the recent surge in jet fuel costs, as a result of the ongoing war in Iran, reportedly pushed it over the brink.
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Spirit had planned to exit bankruptcy by the summer after striking a deal with creditors to shed billions in debt. However, its financial position has been weakened due to the increase in fuel costs.
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The airline ceased operations at around 3am on Saturday when none of its planes were in the air and crew members were away from their bases. However, some passengers still arrived at the airport in the morning after not receiving messages about the cancellations.
The airline said it would automatically refund flights purchased with a credit or debit card. However, a bankruptcy court will determine how to compensate those who booked flights using airline points or a voucher.
Spirit had drawn up plans to merge with competitors in recent years. It discussed merging with Frontier Airlines and JetBlue Airways but plans were blocked by theJoe Bidenadministration.
Source: Daily Express :: World Feed
