American Airlines has filed a notice of appearance in Spirit Aviation’s ongoing bankruptcy proceedings, as stated in a recent court filing obtained by Reuters. The filing, which was made in the Southern District of New York on December 5th, requests that American Airlines receive all necessary notices related to Spirit’s second Chapter 11 bankruptcy proceedings.
In August, Spirit announced its decision to file for Chapter 11 bankruptcy for the second time in a year, stating that it would explore all options for its future. According to a filing with the Securities and Exchange Commission (SEC), the company is actively engaged in discussions with potential buyers or merger partners in order to maximize its value.
However, union workers have expressed concerns that this second bankruptcy may be more difficult than the first. In a memo obtained by Reuters, the Association of Flight Attendants warned that they must be prepared to protect their interests during this process.
As a result of the bankruptcy filing, Spirit has already discontinued operations in 11 cities, including Albuquerque, New Mexico; Birmingham, Alabama; Boise, Idaho; Chattanooga, Tennessee; Columbia, South Carolina; Oakland, California; Portland, Oregon; Sacramento, California; Salt Lake City; San Diego; and San Jose, California. A planned route to Macon, Georgia was also suspended. These cuts were confirmed by a spokesperson for the airline.
Spirit, the largest budget carrier in the United States, has listed its assets and liabilities as being in the range of $1 billion to $10 billion. As the bankruptcy proceedings continue, American Airlines will now be involved in receiving all necessary notices and updates related to the process.
