Bankrupt low-cost carrier Spirit Airlines plans to cut capacity by 25% in November. The restructuring process brings layoffs and route cancellations.
US-based low-cost carrier Spirit Airlines is rolling out its restructuring plan following bankruptcy proceedings. The company announced that from November it intends to reduce its flight capacity by around 25%.
Spirit CEO Dave Davis, in a note sent to employees, stressed that cuts to flight schedules aimed at reducing costs will inevitably lead to job losses. Davis said: “As we become a more efficient airline, these assessments will inevitably affect the size of our teams. Unfortunately, we must make tough decisions in order to emerge stronger.”
While the airline’s revised flight plan is expected to be finalised next week, unions have also joined the process. Captain Ryan Mulle, president of the union representing Spirit’s pilots, announced that the carrier aims to save around $100 million annually. The union has started surveying its members on the issue.
Earlier this month, Spirit announced it would withdraw from several US cities. As of 2 October, the airline will suspend flights to Albuquerque, Birmingham, Boise, Chattanooga, Oakland, Columbia, Portland, Sacramento, Salt Lake City, San Diego and San Jose. Plans to launch a new route to Macon, Georgia have also been cancelled.
Spirit filed for bankruptcy in August for the second time in a year. These cutbacks come at a time when major airlines are stepping up competition with discounted fares and passenger expectations for higher-quality service are on the rise.
Meanwhile, another low-cost carrier, Southwest Airlines, has begun offering seat assignments for an additional fee in response to customer demand.
Currently operating around 5,000 flights to 88 destinations across the US, the Caribbean, Mexico, Central America, Panama and Colombia, Spirit Airlines aims to reshape its operations on a smaller but more sustainable scale through the restructuring process.
