Major airline set to ‘file for bankruptcy’ putting thousands of flights at risk
A MAJOR budget airline is set to file for bankruptcy, it has been reported.
Spirit Airlines, a US low-cost carrier, was in discussion to merge with Frontier, another budget airline.
However, Frontier is no longer going ahead with the merger – putting Spirit at risk.
It is thought that the airline will file for Chapter 11 within weeks, the Wall Street Journal reports.
While Chapter 11 is bankruptcy, it will prevent a full airline closure.
Instead, routes and staff will be reduced, but flights will still operate on a more limited capacity.
Last year, Spirit carried 44million passengers, operating thousands of weekly flights to more than 600 airports.
However the airline, based in Florida, has already made huge cuts after failing to make a profit in the last five quarters.
Last month, 330 pilots were furloughed which will be enforced from January 31.
And 23 Airbus aircraft are being sold by Spirit, raising $519million.
Spirit already tried to merge with Frontier back in 2022, although this was beaten by JetBlue.
The Sun has contacted Spirit Airlines for comment.
The airline launched as Spirit Airlines in 1992, making it one of America’s younger commercial carriers.
However, the company was founded in 1983 as a smaller airline, Charter Ones Airline.
Spirit was the first airline in the US to charge passengers for their carry on luggage in 2010.
A number of other airlines have been forced to shut down in recent years.
Monarch Airlines ceased operations in 2017, which at the time was the UK’s largest ever to collapse.
Thomas Cook shut down in 2019, resulting in the largest ever peacetime repatriation, although the airline has since relaunched.
Flight compensation rules
A look at your rights if a flight is delayed or cancelled, when your entitled to compensation and if your travel insurance can cover the costs.
What are my rights if my flight is cancelled or delayed?
Under UK law, airlines have to provide compensation if your flight arrives at its destination more than three hours late.
If you’re flying to or from the UK, your airline must let you choose a refund or an alternative flight.
You will be able to get your money back for the part of your ticket that you haven’t used yet.
So if you booked a return flight and the outbound leg is cancelled, you can get the full cost of the return ticket refunded.
But if travelling is essential, then your airline has to find you an alternative flight. This could even be with another airline.
When am I not entitled to compensation?
The airline doesn’t have to give you a refund if the flight was cancelled due to reasons beyond their control, such as extreme weather.
Disruptions caused by things like extreme weather, airport or air traffic control employee strikes or other ‘extraordinary circumstances’ are not eligible for compensation.
Some airlines may stretch the definition of “extraordinary circumstances” but you can challenge them through the aviation regulator the Civil Aviation Authority (CAA).
Will my insurance cover me if my flight is cancelled?
If you can’t claim compensation directly through the airline, your travel insurance may refund you.
Policies vary so you should check the small print, but a delay of eight to 12 hours will normally mean you qualify for some money from your insurer.
Remember to get written confirmation of your delay from the airport as your insurer will need proof.
If your flight is cancelled entirely, you’re unlikely to be covered by your insurance.
Also in 2019, Icelandic airline WOW Air stopped operations, with the airline operating cheap flights from the UK to US.
Flybe ceased operation in 2020, offering the majority of domestic UK flights outside of London.