Spirit

The U.S. Bankruptcy Court for the Southern District of New York has authorized Spirit Airlines’ plan to exit bankruptcy.

Ultra-low-cost carrier Spirit has rejected yet another merger offer from Frontier as the carrier plans to go forward with restructuring.

During a recent earnings call, Frontier’s leaders say they are ready to move forward with the company’s latest proposal to purchase Spirit.

Should a transaction be finalized, Frontier and Spirit would become the fifth-largest U.S. airline with plans to serve 100 million passengers per year. 

Spirit is reducing its workforce even more, according to a Wall Street Journal report. The ultra-low-cost carrier plans to cut 200 jobs in various departments.

In its latest cost-cutting move, ultra-low-cost carrier Spirit has phased out its remaining two Airbus A319 aircraft earlier than planned.

The airline – which began flying in 2011 – operates a fleet of all-turboprop aircraft from Fort Lauderdale, Orlando, San Juan, and Tampa.

The ultra-low-cost airline has rapidly scaled down its fleet in recent months, which included the sale of 23 Airbus jets.

Spirit and Frontier’s survival may very well depend on another merger attempt, says longtime airline founder David Neeleman.

Spirit expects shareholders will lose their investments during its Chapter 11 bankruptcy restructuring deal with bondholders.