Thanks To Department Of Justice, Spirit Airlines Forced To Furlough Pilots

Thanks To Department Of Justice, Spirit Airlines Forced To Furlough Pilots

by Gary Leff on April 8, 2024

Spirit Airlines is planning to furlough 260 pilots starting in September. They’re blaming Pratt & Whitney engine issues, which limit their flying. However, they’re also deferring delivery of new aircraft because of their financial position. And they wouldn’t be in this position, except for the federal government blocking plans which would have utilized these resources.

• These furloughs, then, are the direct result of the Department of Justice blocking JetBlue from acquiring Spirit
• JetBlue wanted Spirit for its pilots and planes
• And JetBlue needed to grow primarily because of its partnership with American Airlines, which the DOJ also blocked.

All aircraft Spirit has on order for delivery between the second quarter 2025 through end of 2026 will be pushed back to 2030 and 2031. This also means slower growth in the ultra low cost carrier segment, the exact thing that the DOJ claimed their action against JetBlue-Spirit was aimed to prevent.

Spirit will take one aircraft on direct lease in each of the second and third quarters of 2025, and has not yet paused delivery of aircraft ordered for 2027 – 2029.

In fact, at the same time as engine issues on its fleet are flagged, so too is the airline’s need to “reset the business and focus on the core airline while we adjust to changes in the competitive environment.” They are choosing not to grow and don’t need as many pilots as are currently on property. They’ve already suspended hiring.

Spirit had planned to take delivery of 20 new Airbus A321neo aircraft this year, and grow by a net 19 planes next year after retirement of its remaining Airbus A319ceos as well as 6 Airbus A320s.

Not only is Spirit receiving compensation from Pratt & Whitney for engine issues, as Airbus has tried to put together an order with United for new planes (presumably once United gets out from under FAA-imposed restrictions on growth), there’s been talk of paying for delivery slots held by other airlines. Spirit may be receiving compensation for these deferrals, building additional cash.

Enilria observes that if Pratt & Whitney can solve its engine issues quickly, that would mean a rapid return to service of Spirit’s grounded fleet — too rapid, it seems, for Spirit’s growth appetite.

Other carriers, like United and JetBlue, have offered voluntary programs (not furloughs) to manage workforce, driven in part by Boeing aircraft delivery delays.

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