Spanish
New York.- The American airline Spirit announced this Friday that it has filed for bankruptcy protection for the second time in a year under the country's bankruptcy law after a failed attempt to reorganize the company, which operates flights across the United States.
The low-cost airline will continue operating while facing the bankruptcy process under Chapter 11, which it filed in federal court for the Southern District of New York and which allows it to reorganize under the protection of the law.
"Spirit intends to use the Chapter 11 process to implement the extensive changes needed to transition the company towards a sustainable future and position it to offer the best value in the world in the coming years," the company said in a statement.
The company will continue to pay salaries and benefits to employees and contractors during the bankruptcy process and has been in contact in recent months with some of its main landlords, bondholders and other key parties with a view to its future, it added.
Spirit had filed for bankruptcy last November after unsuccessfully attempting to merge with other airlines. It emerged from bankruptcy protection in March after exchanging nearly $800 million in corporate debt for shares, according to the Wall Street Journal.
It also highlights that the airline did not renegotiate its aircraft lease contracts during the previous process, which left it facing high lease costs, in addition to a debt burden of more than 2 billion.
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With this scenario, its board of directors came to the conclusion that the company needs another Chapter 11 process. "Since we emerged from our prior restructuring, which focused exclusively on reducing Spirit's funded debt and increasing equity, it has become clear that there is much work to be done and many more tools available to better position Spirit for the future," said Dave Davis, President and Chief Executive Officer, in the statement. Davis said he hopes to redesign its network to focus on key markets and expand its destinations, frequencies, and better connection; optimize the size of its fleet; improve the low-cost model it pioneered and be able to offer more "premium" options to its customers while maintaining affordable prices.
