Spirit Airlines, facing its second bankruptcy filing in less than a year, has been storing its planes at Phoenix Goodyear Airport. The number of planes in this makeshift “plane graveyard” has now exceeded 40 and could potentially increase as the bankruptcy proceedings continue.
The budget airline, known for its affordable flights to popular tourist destinations, filed for Chapter 11 bankruptcy in August 2021, just a year after its previous filing in November 2020. As part of its restructuring plan, Spirit Airlines has sought court approval to reject equipment leases for 87 Airbus aircraft on October 3. These aircraft are considered “excess equipment” and are no longer needed for the revised business plan.
According to court filings, Spirit Airlines stated that rejecting these leases will relieve the burden of unprofitable leases and the costs of maintaining and storing several out-of-service planes. The airline also anticipates significant cost savings from this move. Currently, over 40 Spirit planes are parked at Phoenix Goodyear Airport, accounting for 41% of the airline’s total fleet.
Some of these planes have been at the airport for over two years due to issues with their Pratt & Whitney geared turbofan engines. These problems were caused by a “rare condition” in the powder metal used to manufacture certain parts, according to the engine’s owner, RTX. Despite initial plans for speedy inspections and repairs, the planes are still sitting at the airport after two years.
It is likely that Spirit Airlines intends to store all its “dead” planes at Phoenix Goodyear Airport, given the extended period some of the planes have been there. Michael Lopardi, Senior Manager of Media Relations at Spirit Airlines, stated that rejecting these leases and aligning their fleet with their network adjustments will generate significant cost savings for the airline.
The court hearing for approval of the lease rejection is scheduled for October 16 in the US Bankruptcy Court for the Southern District of New York. If approved, Spirit Airlines aims to fly the rejected planes to Phoenix Goodyear Airport by October 27.
During its first bankruptcy filing in 2020, Spirit Airlines did not make significant changes such as reducing its fleet or coverage. However, the company faced a loss of $257 million by the end of June 2021, despite forecasting a net profit of $252 million for the 2025 fiscal year in December 2020. As a result, the airline has taken necessary steps during its second bankruptcy filing to cut costs, including pulling out of several American cities and reducing its fleet.
Spirit Airlines is not the only airline facing financial struggles. American Airlines and Delta have also recently made major changes to their routes. Additionally, international airlines are feeling the effects of “international geopolitical instability,” with an Italian budget carrier unexpectedly cancelling all flights to Canada.
Despite the challenges faced by the airline industry, there have been some positive developments. Delta Airlines now offers a direct route to a popular vacation destination from a New York City airport.