United Rules Out Bid for Spirit Airlines’ Assets

United Airlines CEO Scott Kirby stated this Tuesday that the company will not submit any bid for the assets of Spirit Airlines, which is currently in bankruptcy. The announcement comes after the low-cost carrier filed for bankruptcy protection for the second time in a year, following the failure of a reorganization process aimed at stabilizing its finances.

Spirit’s restructuring plan includes a significant reduction of its network and fleet, which would put several of its assets on the market. However, Kirby explained to Reuters that the airline’s aircraft, routes, and slots do not align with United’s strategy.

Challenges of Integrating Spirit’s Fleet

The executive detailed that reconfiguring each Spirit aircraft would cost around $15 million and take between two and three years, making any integration attempt unviable. This is compounded by a lack of sufficient boarding gates in key markets such as Fort Lauderdale, where United’s presence is limited.

“It’s not in our focus,” said Kirby. “So we’re not going to try.”

United Fills the Route Void

Despite its refusal to acquire Spirit’s assets, United began selling tickets this month to 15 cities served by the low-cost carrier, offering an alternative for passengers who may be affected in the event of a potential suspension of operations.

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Kirby has been one of the harshest critics of the low-cost business model, repeatedly questioning its viability. Just last week, he expressed doubts about Spirit’s ability to survive its current financial difficulties.

Is the Era of Cheap Flights Coming to an End?

Spirit’s decline and the shift of many U.S. airlines toward premium customers have raised concerns that budget fares may become a thing of the past. Kirby, however, downplayed these fears:

“Some business models aren’t going to work, and others will, but there has always been and always will be strong low-cost competition in the United States,” he stated.

Partnership with JetBlue and Merger Rumors

United also maintains a partnership with JetBlue Airways that allows travelers to earn and redeem miles with both companies, in addition to providing United with access to slots at New York’s JFK Airport, from which United withdrew in 2022.

The alliance has sparked speculation about a possible merger, although Kirby clarified that the agreement already delivers significant value to customers and does not necessarily require going through the “pain” of a full integration process.

More Pilots and New Aircraft on the Horizon

The company is also preparing an ambitious internal growth plan. With increased aircraft deliveries from Boeing, United expects to hire 2,500 pilots by the end of next year.

At the same time, Kirby announced that later this year they will make a decision regarding the order for 45 Airbus A350-900s, a contract that has been repeatedly postponed and modified. The need to replace older Boeing 767s and 777s will be key to the final decision.

The constant delays have fueled rumors about a possible cancellation or conversion of the order to other models, such as the A321neos, which are already part of the fleet. Nevertheless, United continues to list the order as active.

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