Struggling Carrier Explores Alternative Investment Firm Takeover
Spirit Airlines is exploring a potential sale to alternative investment firm Castlelake, as the struggling carrier navigates its second Chapter 11 bankruptcy filing in less than a year. Despite renewed talks with Frontier Airlines, Spirit has not reached a merger agreement and may instead pursue a sale to Castlelake. The airline has cut capacity, reduced its fleet, and laid off employees in an effort to conserve cash, and pilots have agreed to pay concessions totaling about $100 million. The potential deal would likely require the involvement of Spirit’s bondholders, though the structure and valuation of any transaction remain unclear. This development was first reported by CNBC, according to AeroTime.