Spirit Airlines Grounds Airbus Deal: Cancels 52 Aircraft Orders in Settlement with AerCap

Image Source: FlightGlobal

Spirit Airlines has canceled its order for 52 Airbus aircraft and 10 additional options as part of a bankruptcy settlement with aircraft lessor AerCap. The deal, approved by a U.S. court, allows AerCap to take over the commitments while Spirit restructures its fleet and operations amid financial challenges.

Spirit Airlines Restructures Fleet: Airbus Order Canceled in AerCap Settlement

In a major fleet optimization move, Spirit Airlines has officially canceled its commitment to purchase 52 Airbus aircraft and 10 optional units, transferring the order to AerCap, the world’s largest aircraft leasing company. The decision is part of a broader bankruptcy settlement aimed at stabilizing Spirit’s operations and reducing costs.

Key Highlights from the Settlement Announcement:

Order Cancellation Details

Spirit will no longer proceed with its planned acquisition of 52 Airbus narrowbody jets, primarily from the A320neo family.

The airline also relinquishes options for 10 additional aircraft, originally scheduled for delivery between 2027 and 2028.

AerCap Takes Over Commitments

AerCap will assume the canceled orders, potentially reallocating the aircraft to other clients or adjusting its own fleet strategy.

This transfer is part of a three-way agreement involving Spirit, AerCap, and Airbus.

Bankruptcy Court Approval

The settlement was approved by the U.S. Bankruptcy Court for the Southern District of New York, marking a critical step in Spirit’s restructuring efforts.

Financial Implications

AerCap will inject $150 million into Spirit as part of the deal, in addition to a separate $475 million financing agreement, helping the airline manage liquidity and operational continuity.

Fleet Downsizing Strategy

Spirit plans to reduce its fleet by nearly 100 aircraft, including the cancellation of leases for 27 planes and furloughing 1,800 flight attendants.

The move is expected to lower operating costs and improve long-term sustainability.

Industry Impact

The cancellation reflects broader challenges in the ultra-low-cost carrier segment, where rising fuel prices and competitive pressures have strained profitability.

Analysts view the settlement as a pragmatic step toward Spirit’s survival and potential turnaround.

This strategic retreat from a major aircraft order signals Spirit Airlines’ intent to streamline operations and emerge leaner from its financial crisis.

Sources: Economic Times, Simple Flying, EconoTimes

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