Spirit Airlines Secures Private Takeover Deal in $795M Bankruptcy Exit, and More

Dear Readers,

Welcome to the AviationOutlook Newsletter.

Your One-Stop source for the most relevant Aviation news briefs and industry insights (MINUS noise).

✅ 1 Email Daily ✅ 5 Min Read ✅ 0 Time Wasted

🫵 YOU become industry-smart!

Here are the 10 Top Aviation Industry Updates for you today.Let’s get started.

Bondholders Take Control as Spirit Airlines Wins Court Approval for Chapter 11 Bankruptcy Exit

Spirit Airlines has secured approval from U.S. Bankruptcy Judge Sean Lane to exit Chapter 11 bankruptcy as a private company through a comprehensive restructuring plan.

The plan involves converting $795 million of debt to equity and raising $350 million in new financing through equity shares, with control transferring to major bondholders, including Citadel Advisors, Pacific Investment Management Co., and UBS Asset Management.

The airline expects to emerge from bankruptcy within weeks, after rejecting multiple merger attempts from Frontier Airlines.

Key Points

• The restructuring plan voids existing equity shares and transfers ownership to Spirit's creditors

• A new $300 million revolving credit facility will be established

• Spirit will issue $840 million of new senior secured debt to existing bondholders

• Around 200 jobs will be cut, primarily in administrative and management positions

• The company filed for bankruptcy in November 2024. Its earlier proposed merger with JetBlue was also blocked by federal courts

• Spirit also rejected multiple merger bids from Frontier Airlines, including a recent merger proposal that offered $400 million in debt and a 19% stake

• The airline plans to enhance the passenger experience with free WiFi, complimentary refreshments, and a new premium economy product as a refreshed comeback

What It Means

This restructuring gives Spirit a fighting chance at survival, though significant challenges remain.

The debt-to-equity conversion and additional funding provide crucial financial breathing room, but the airline must execute flawlessly on its planned service improvements and cost reductions.

While rejecting Frontier's merger offers shows confidence, I think Spirit's long-term viability as a standalone carrier still faces an uphill battle.

Other Key Aviation Industry Updates for Today 👇

2. Midair Collision Claims Two Lives at Arizona Airport

Two people died when a Lancair 360 MK II and a Cessna 172S collided midair at Marana Regional Airport, Arizona, on February 19.

Each plane carried two passengers; both fatalities were from the same aircraft. The Cessna landed safely, while the Lancair crashed near runway 3 and caught fire.

The incident occurred at an uncontrolled airport where pilots self-coordinate using radio frequencies.

3. Airlines Consider Pay-by-Passenger-Weight Model to Cut Carbon Emissions

A few airlines are exploring passenger weight-based pricing to reduce fuel consumption and emissions.

Finnair recently started voluntary passenger weighing at Helsinki Airport, collecting anonymous data for flight calculations through 2030.

A recent U.S. study found lighter passengers favor weight-based fees, while heavier ones prefer current pricing, though nearly half were open to change.

Younger travelers and frequent flyers showed more support for the concept.

4. Saudi Startup Riyadh Air Remains Optimistic About Supply Chain Progress Despite Boeing Delays Pushing Launch to Late 2025

Riyadh Air CEO Tony Douglas reports moderate improvements in aviation supply chain issues, though the Saudi airline's launch faces further delays.

Originally planned for early 2025, then pushed to Q3, operations are now expected by year-end.

Boeing will deliver only four of eight planned 787s this year.

Despite challenges, the airline maintains ambitious plans with 72 Boeing 787s and 60 Airbus A321neos ordered, while exploring additional wide-body aircraft purchases.

5. Trump Seeks Alternatives for Delayed Presidential Jets, Air Force One

President Trump expressed frustration with Boeing's delays in delivering two new Air Force One planes, now pushed to 2029.

Originally contracted for $3.9 billion with 2024 delivery, Boeing has lost $2 billion on the fixed-price deal.

Trump suggests buying and converting used Boeing aircraft, possibly from overseas, but rules out Airbus.

Boeing CEO revealed Elon Musk is helping address the issues. The current presidential fleet is 35 years old.

6. Italian Defense Giant Leonardo Secures New Partner for Boeing Component Unit

Italian aerospace giant Leonardo has secured a defense and space sector partner to co-invest in its struggling aerostructures division, which makes Boeing 787 components.

The unit, employing 4,000 people across southern Italy, has faced challenges due to Boeing's reduced production rates.

While 787 fuselage deliveries increased to 49 in 2024, up from 39 in 2023, the division remains under pressure.

Full details of the partnership will be revealed on March 11.

7. Chinese Naval Drills Force Flight Diversions Near Australia

Three Chinese warships conducting exercises in the Tasman Sea prompted flight diversions between Australia and New Zealand after giving short notice of potential live-fire drills.

Located 340 nautical miles southeast of Sydney, the vessels (frigate Hengyang, cruiser Zunyi, and supply ship Weishanhu) disrupted multiple commercial flights.

While China claims the drills were standard and professional, Australian Defense Minister Richard Marles criticized the brief notification.

No actual live fire was confirmed.

8. American Airlines Returns to Key Hawaii Market from Chicago

American Airlines will resume daily nonstop flights between Chicago O'Hare and Honolulu starting October 26, using Boeing 787-8 Dreamliners.

The route, suspended since 2021, will compete with United's existing service and become American's longest domestic route at 4,243 miles.

This addition is part of American's broader Chicago expansion, which includes 480 daily flights and nine new destinations, representing a 25% capacity increase for summer 2025.

9. Honda Begins Assembly of Transcontinental Light Business Jet

Honda Aircraft Company has started assembling the first HondaJet Echelon test unit's wing structure in Greensboro, North Carolina.

The new light jet, scheduled for its maiden flight in 2026, will offer transcontinental range, 40% better fuel efficiency than midsize jets, and accommodate 11 occupants.

With specialized assembly lines ready and a development simulator completed in January, the program has attracted nearly 500 letters of intent.

Type certification is expected in 2028.

10. Emirates and Astral Unite to Expand African Air Freight Network

Emirates SkyCargo and Kenya's Astral Aviation signed an MoU to enhance African trade connectivity.

The partnership combines Emirates' network of 145 destinations with Astral's 50 African routes. The agreement includes cargo interline options and block space arrangements, supporting UAE-Africa trade growth and AfCFTA goals.

Emirates currently operates seven freighters and 172 weekly passenger flights to 20 African destinations, while Astral maintains hubs in Nairobi, Johannesburg, Liege, and Dubai.