American Airlines (AAL) has asked to receive all notices and filings pertaining to Spirit Aviation’s (FLYYQ) bankruptcy proceedings underscoring the American’s (AAL) strategic interest in certain assets of Spirit Airlines.
Spirit Airlines’ parent company, Spirit Aviation (FLYYQ) filed for bankruptcy protection for a second time this year in August, citing “adverse market conditions, including elevated domestic capacity and weak domestic demand for leisure travel” for its inability to continue operations under its current financial situation. Besides reorganization, Spirit (FLYYQ) is also “engaging in discussions with a number of interested counterparties.”
In a filing with the Southern District of New York on December 5, American Airlines (AAL) is asking for approval to receive Spirit’s operating reports, reorganization plans and liquidation statements.
American has already purchased two of Spirit’s (FLYYQ) four gate slots at Chicago O’Hare International Airport for $30M. By acquiring the two additional slots, American (AAL) mitigated the loss of four gates at O’Hare in October to United Airlines (UAL) as part of a re-allocation process based on flight volumes.
Shares of Spirit Aviation Holdings (FLYYQ) opened more than 14% lower on Monday.