US EditionSpirit Airlines Is in Deal Talks with Investment Firm Castlelake as Struggling Carrier Seeks Path Forward
Spirit Airlines explores a takeover by Castlelake to exit Chapter 11 amid rising costs and operational challenges, after JetBlue acquisition was blocked, sources say.
- This month, Spirit Airlines is in talks with Castlelake for a potential takeover as the Dania Beach, Florida-based carrier seeks a path out of Chapter 11 bankruptcy, but neither commented.
- Having filed for Chapter 11 last August, Spirit faces post-pandemic cost increases, a Pratt & Whitney engine recall grounding dozens of Airbus aircraft, and a blocked JetBlue Airways acquisition.
- In mid-December, Spirit amended its creditor pact to receive $50 million immediately, while the Air Line Pilots Association said last year’s union concessions totaled $100 million.
- Facing bankruptcy pressure, Spirit has cut flights, reduced its fleet and jobs to save money, but it is unclear whether bondholders and Castlelake will reach terms amid U.S.-focused low-cost carriers' pressures.
- Castlelake brings aviation finance experience and Merit AirFinance with $1.8 billion in deployable capital, joining a landscape where Frontier Airlines held recent talks and a deal collapsed years ago after JetBlue Airways' offer.
19 Articles
19 Articles
Spirit Airlines in Talks With Investment Firm Castlelake for Potential Takeover Amid Bankruptcy
DANIA BEACH, FLORIDA (VINnews) — Spirit Airlines is in discussions with Minneapolis-based alternative investment firm Castlelake for a possible takeover, as the ultra-low-cost carrier seeks a way to emerge from its second Chapter 11 bankruptcy filing in less than a year, according to people familiar with the matter. CNBC reported the talks Thursday, citing sources. […]
Budget flights hang in balance as bankrupt Spirit Airlines turns to private equity for lifeline: report
Beleaguered carrier Spirit Airlines may get a lifeline out of bankruptcy.The low-budget carrier is in talks with Castlelake, a global alternative investment firm with approximately $33 billion in assets under management, about a potential takeover, according to CNBC.The airline has long struggled to compete with rival carriers that offer various levels of service and fly to more destinations. Its financial situation became so perilous that the a…
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