United Airlines Will Not Bid for Bankrupt Spirit Airlines’ Assets, Says CEO Kirby

United Airlines CEO Scott Kirby has stated that his company will not be bidding for bankrupt Spirit Airlines’ assets if they become available. Spirit Airlines filed for bankruptcy protection last month for the second time in a year, and its restructuring plan involves shrinking its network and fleet, resulting in potential assets being up for grabs.

In an interview with Reuters, Kirby explained that Spirit’s airplanes, slots, and routes do not align with United’s business model. He also noted that it would be impractical for United to reconfigure Spirit’s fleet, as it would cost $15 million per plane and take two to three years. Additionally, there are not enough gates for United in Spirit’s key markets, such as Fort Lauderdale, Florida.

Kirby stated, “It’s not in our wheelhouse, and so we’re not going to try to do that.

However, United did recently start selling tickets for new flights to 15 cities where Spirit operates. The company has stated that these new flights are aimed at providing alternative options for Spirit’s customers if the discount carrier were to suddenly go out of business.

Kirby has been vocal about his doubts regarding the viability of the business model of discount airlines. Last week, he expressed skepticism about Spirit’s survival. However, he played down concerns about the end of cheap flights for price-conscious travelers, stating that there are still plenty of airlines offering affordable travel options.

In addition, United has recently entered into a partnership with JetBlue Airways, allowing customers to earn and spend frequent-flier miles on both airlines. As part of this alliance, United will also gain access to slots at New York’s JFK airport, which it previously left in 2022.

There has been speculation about a potential merger between United and JetBlue, but Kirby stated that the partnership already creates value for United’s customers, and it may not be necessary to go through the pain of a merger.

The company also has plans to ramp up pilot hiring, with the goal of hiring 2,500 pilots by the end of next year. This is in line with United’s plan to increase aircraft deliveries from Boeing.

Kirby also mentioned that the company will announce its Airbus A350 order later this year. United currently has an order for 45 A350-900 aircraft, but there has been speculation that the company may cancel or convert the order into other Airbus models. However, Kirby stated that they have not yet made a decision and are actively working on it.

United’s need to replace its older Boeing 767s and 777s is a driving factor in the decision-making process for the A350 order. While there has been industry chatter about potential cancellations or conversions, United has maintained the order on its books.

“We have not decided,” Kirby said. “We’re actively working on it.