unfeasible in the wake of a major spike in war-driven fuel costs<\/a>. Fuel is the company\u2019s second-largest expense behind labor.<\/p>\nHe said statements from \u201cnaysayers\u201d that the airline was on the verge of liquidation within days were untrue. But he acknowledged that cash is tight.<\/p>\n
\u2018Crossroads\u2019<\/p>\n
\u201cI think I have been clear, but I want to leave no possibility for confusion: Spirit now definitively stands at the crossroads,\u201d Huebner said. \u201cSeveral hundred millions of the company\u2019s cash is currently locked away, and inaccessible to us under the terms of the post-petition financing facility.\u201d<\/p>\n
He said much of the cash is being held in special accounts \u201cto ensure funding for specific already incurred costs like payroll and taxes.\u201d<\/p>\n
\u201cThe cash actually available to Spirit to fund ongoing operations is not going to last for very much longer,\u201d Huebner added.<\/p>\n
\u201cSo either or both of new financing or access to almost $240 million of restricted cash is absolutely essential, about no later than the end of next week,\u201d he said. \u201cThe company has left no pebble unturned with respect to cash conservation and generation.\u201d<\/p>\n
Lane said he would do whatever he could help expedite the hearing process<\/p>\n
\u201cObviously [you have] a lot of wood to chop and I wish you all the best of luck in that,\u201d Lane said, noting he had presided over the American Airlines bankruptcy case in 2011. \u201cWe have a lot of practice and experience in such things.\u201d<\/p>\n
The proposed bailout was not before the court Thursday. But the judge did approve the sale of 20 Airbus jetliners operated by Spirit to a California trading firm for more than $500 million.<\/p>\n
\u201cI find that this is in fact an appropriate transaction for maximizing value\u201d of the airline\u2019s bankruptcy estate, the judge said.<\/p>\n
Skepticism, support<\/p>\n
Word that the U.S. Government is moving toward the rescue of a private company stirred outcries of protest in Congress, but predictable support from those whose constituencies have the most to lose through potential layoffs, fewer air service choices and higher prices.<\/p>\n
\u201cThis is an absolutely TERRIBLE idea,\u201d Sen. Ted Cruz, R-Texas, posted on X. The senator chairs the Senate Committee on Commerce, Science and Transportation.<\/p>\n
But in a letter to Trump dated Wednesday, Wasserman-Schultz, D-Weston, said she supports a solution \u201cthat will keep Spirit Airlines operating while allowing them a path back to long-term stability.\u201d<\/p>\n
The congresswoman noted she represents a part of Broward County that includes the international Airport,\u00a0 Port Everglades, \u201cand a range of additional economic and tourism engines \u2014 including the headquarters of Spirit Airlines in Dania Beach.\u201d<\/p>\n
\u201cI represent thousands of people who work directly for Spirit, and protecting their financial security and livelihoods is essential for our local and regional economy,\u201d she wrote. \u201cTens of thousands of American jobs across the country are supported by Spirit\u2019s operations, and drastic changes in those operations would have devastating ripple effects across the aviation industry. When a low-cost airline leaves a market, airfare and related costs skyrocket for all travelers in that market. We have seen this pattern repeatedly in US and global markets. In a time where the cost of airfare has taken off to new heights, low-cost carriers provide a more affordable alternative and increase competition across the marketplace.\u201d<\/p>\n
\u201cThe work to keep Spirit Airlines operating is critical, and despite our policy disagreements, where we find common ground to save jobs and lower prices, you will have my support,\u201d she told Trump.<\/p>\n
On Thursday morning, the Spirit contingent of the Air Line Pilots Association, which represents more than 2,000 active pilots at the airline and contributed to the bulk of a $100 million labor cost-saving package, voiced its backing.<\/p>\n
\u201cSpirit is the reason so many Americans can afford to visit family, travel for work, or take a vacation,\u201d said Capt. Ryan P. Muller, chair of the Spirit Master Executive Council. \u201cWhen Spirit enters a market, fares go down. Losing this airline would not just cost 14,000 jobs, it would cost competition, affordability, and access for passengers who have nowhere else to turn.\u201d<\/p>\n
He added that the airline\u2019s survival \u201cis crucial to a competitive, affordable air travel market for all segments of consumers, and the U.S. government must provide support, as it has during other significant shocks to the industry.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"A Spirit Airlines lawyer confirmed to a New York bankruptcy judge Thursday that the troubled Dania Beach-based carrier…\n","protected":false},"author":2,"featured_media":244986,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[558,249,251,250,266,5741,115,1798],"class_list":{"0":"post-244985","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-fort-lauderdale","8":"tag-business","9":"tag-fort-lauderdale","10":"tag-fort-lauderdale-headlines","11":"tag-fort-lauderdale-news","12":"tag-local-news","13":"tag-national-news","14":"tag-news","15":"tag-transportation"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts\/244985","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/comments?post=244985"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts\/244985\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/media\/244986"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/media?parent=244985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/categories?post=244985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/tags?post=244985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}