BySuzanne Rowan Kelleher,
Forbes Staff.
A last-ditch plea from Spirit Airlines pilots to its employers’ creditors shows stakeholders are worried about the bankrupt airline’s immediate future—and possibly a sign that America’s largest low-cost carrier has run out of lifelines.
Creditors will soon decide whether South Florida-based Spirit Airlines survives bankruptcy or faces imminent liquidation, according to a remarkable open letter issued Tuesday by the Air Line Pilots Association (ALPA), the labor union representing the budget airline’s 2,600 pilots, 500 of which have been furloughed.
Last month, Spirit Airlines announced it had received immediate access to $50 million—just half of a previously agreed-upon $100 million third funding round laid out in a Debtor-in-Possession (DIP) financing agreement.
