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Spirit Airlines Is Winding Down All Operations

spiritrestructuring.com

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Re: Spirit Airlines Is Winding Down All Operations

#91

Post by RestlessMind »

vrganj wrote: post #66
ungreased0675 wrote: post #65

Earlier quoted context omitted.

Because companies that are run poorly should go out of business. Otherwise, what incentive is there for management to do a good job?

Why can't management be fired instead? Why punish the above groups for the mistakes of leadership?

Management is also fired in this instance. What you are probably suggesting is that management should have been fired sooner and replaced with competent ones. That is the job of the board, who is the proxy for shareholders. Since the board didn't do its job properly, their shares are also going to zero.

Again, working as intended. There should be no free lunch or bailouts for incompetent work.

Re: Spirit Airlines Is Winding Down All Operations

#92

Post by vrganj »

RestlessMind wrote: post #91
vrganj wrote: post #66

Earlier quoted context omitted.

Why can't management be fired instead? Why punish the above groups for the mistakes of leadership?

Management is also fired in this instance. What you are probably suggesting is that management should have been fired sooner and replaced with competent ones. That is the job of the board, who is the proxy for shareholders. Since the board didn't do its job properly, their shares are also going to zero. Again, working as intended. There should be no free lunch or bailouts for incompetent work.

The people being punished aren't the board or the management, those will fail upwards to other cushy roles.

The people being punished are the workers and the consumers.

If the board is unable to bring their house in order, the state should fire them, not let their incompetence ruin the lives of the working class.

I agree with GP that this is "capitalism working as it should", e.g. inflicting cruelty on working people while funnelling more wealth upwards. I disagree with the assessment of that being a good thing.

Re: Spirit Airlines Is Winding Down All Operations

#93

Post by epistasis »

system7rocks wrote: post #13
epistasis wrote: post #4

This process may seem ugly, but just like biological death is necessary for an ecosystem, this sort of death/restructuring is essential for capitalist economies. Assets and capital get reallocated to better uses. It's all part of the circle of life.

Thank God human beings who spend money on these resources are left to fend for themselves. Imagine if we spent good money on a flight, and now the company winds down its operations even as we are on route to our destination. Since we are just a number, I supposed we should simply cease to exist or occupy a liminal space. Or maybe... we could be treated as a human being?

I'm guessing you misinterpreted my comment to assert that we should provide no consumer protections. That was not what I was saying. I'm talking pancakes, you're talking waffles.

How we treat capital and how we treat humans should not be connected to each other, and it's absolutely important that capital not be treated as if it were a person. Corporations are not humans, and we can not bail out investors while we let consumers flail. And we should never bail out corporations under the premise of helping humans, when direct assistance to humans would suffice.

Re: Spirit Airlines Is Winding Down All Operations

#94

Post by user_7832 »

mey wrote: post #49
user_7832 wrote: post #43

Can someone explain to me (a non American) which niche or segment was Spirit in (and perhaps why they , and not any other airline, are shutting shop)?

Low cost carrier. Think Ryanair. Competition from the rest of the market and bad management put them in a bad position, with the most recent war causing unsustainable fuel issues. Other airlines may be able to double/triple their prices in the short term. Spirit's customers may simply choose to not fly. https://www.npr.org/2026/05/02/nx-s1-5807933/spirit-airlines... describes this in more detail.

Thank you!

Re: Spirit Airlines Is Winding Down All Operations

#96

Post by charcircuit »

_moof wrote: post #34
charcircuit wrote: post #21

Earlier quoted context omitted.

The law specifies the order people get paid out for a bankruptcy.

Which law? 14 CFR Part 260 requires air carriers to refund tickets on cancelled flights.

https://www.law.cornell.edu/uscode/text/11/507

14 CFR Part 260 I don't see having precedence. It is hard to punish a company that no longer exists.

Re: Spirit Airlines Is Winding Down All Operations

#97

Post by CamperBob2 »

orsorna wrote: post #87
Animats wrote: post #63

Earlier quoted context omitted.

Just a few hours ago, Spirit execs were saying everything is just fine. At noon yesterday, Trump was saying that a bailout was still likely. (The first time I read about Trump saying that "we" were going to buy Spirit, I thought he meant him personally, or The Trump Organization. Spirit only needed about $500 million, and Trump could afford that.) That nobody wanted to buy a major airline for $500M means it was a rea…

>The first time I read about Trump saying that "we" were going to buy Spirit, I thought he meant him personally He views the federal government as his assets to use and not the people's, I don't blame your confusion. This philosophy at the highest seat of office is unprecedented in America.

He also has prior experience with running^H^H^H^H^H^H^Hbankrupting an airline, so I'm surprised he didn't jump on this particular opportunity.

Re: Spirit Airlines Is Winding Down All Operations

#98

Post by mvdtnz »

spacedcowboy wrote: post #76
clintonb wrote: post #61

It’s strange to see so many commenters celebrating the death of a company and the loss of so many jobs. I flew Spirit a few times. The first time sucked because it was an emergency and I had no other option. The last few flights were great. We got the large seats up front for $75 extra. That plus parking at SJC was still cheaper than flying Southwest out of OAK. The staff were friendly, and the gate was conveniently…

It's probably the association with Trump, at least to those outside the US. Anything even remotely connected to that arsehole is, almost by definition, to be reviled. If he wanted to save it, there's probably a really good reason not to, without reading any further into the topic.

What's the association with Trump?

Re: Spirit Airlines Is Winding Down All Operations

#99

Post by throwaway-11-1 »

epistasis wrote: post #4

This process may seem ugly, but just like biological death is necessary for an ecosystem, this sort of death/restructuring is essential for capitalist economies. Assets and capital get reallocated to better uses. It's all part of the circle of life.

My guess is that investment capital will move from affordable transport to job replacing ai, surveillance tech, weapons to kill foreigners or gambling platforms. So grateful for free markets

Re: Spirit Airlines Is Winding Down All Operations

#100

Post by Redoubts »

mvdtnz wrote: post #98
spacedcowboy wrote: post #76

Earlier quoted context omitted.

It's probably the association with Trump, at least to those outside the US. Anything even remotely connected to that arsehole is, almost by definition, to be reviled. If he wanted to save it, there's probably a really good reason not to, without reading any further into the topic.

What's the association with Trump?

there were talks for the US government to take a large equity stake as part of a bailout, but those fell through
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