Struggling US low-cost carrier Spirit Airlines is in discussions with alternative investment firm Castlelake over a potential takeover as it seeks a path out of bankruptcy, according to a report by CNBC.
Spirit filed for Chapter 11 protection last August for the second time in a year, after a previous turnaround plan faltered. The carrier recently secured an additional $50m in creditor funding, contingent on progress toward a standalone reorganisation or a strategic transaction.
Minneapolis-based Castlelake, which has extensive experience in aviation finance and recently launched a $1.8bn aviation lending arm, Merit AirFinance, is among the potential partners for Spirit. It is unclear if a deal with the airline’s bondholders will materialise or what form it may take.
Spirit has cut flights, reduced its fleet, and implemented $100m in labour concessions, while also seeking to attract higher-spending passengers through bundled fares and upgraded seating. The airline continues to navigate post-pandemic cost pressures, aircraft grounding issues, and the failed JetBlue merger.
