US's Spirit Airlines says rivals "are gunning for us"

Spirit Airlines (NK, Fort Lauderdale International) has accused "some [competitor] CEOs" of trying to put the LCC out of business in the hope of scooping its assets, shortly after United Airlines chief executive Scott Kirby suggested the airline would likely fail in its ongoing Chapter 11 restructuring.

"Some CEOs have said how they’re gunning for us, they’re trying to put us out of business, they just can’t wait for that to happen," chief commercial officer Matt Klein said during a Senate Homeland Security and Governmental Affairs Subcommittee on Permanent Investigations hearing.

Klein underlined in his statement, answering a question by Senator Richard Blumenthal (D-CT), that Spirit Airlines had felt the competitive landscape was skewed against it and protecting the interests of legacy carriers.

"For a very long time, we have been dealing with the lack of access to certain airports. When we do get some access, it is limited, we would be given gates but they might be at the far end of the airport, which makes it difficult for us to provide a good guest experience, makes it very difficult for us to be able to operate efficiently and effectively," Klein said.

He added that such obstacles impacted the airline's bottom line, making it difficult for Spirit to operate profitably and sustain its growth. Klein also accused legacy airlines of "manufacturing" a pilot shortage after they "basically paid their most senior pilots to retire early" during the Covid-19 pandemic. When the market recovered, those airlines started poaching pilots from smaller carriers like Spirit, he alleged.

Klein's comments came shortly after the CEO of United cast doubt on the budget carrier's survival.

"I think the current business plan is not going to work and, if they pursue it, Chapter 11 will be a brief pitstop on the way to Chapter 7," Kirby said at an event. While Chapter 11 allows companies to restructure through bankruptcy, Chapter 7 leads to liquidation and the sale of assets. United is rumoured to be interested in some of Spirit's assets should it go out of business.

Meanwhile, the New York Stock Exchange has confirmed that Spirit's stock will be delisted on December 16. The airline plans to cancel all of its stock as part of the ongoing prearranged Chapter 11 restructuring and did not object to the delisting determination.