Spirit Airlines Transfers Gates at Chicago O’Hare to American Airlines for $30 Million
Spirit Airlines has agreed to transfer two of its gates at Chicago O’Hare International Airport to American Airlines for a total of $30 million, following approval from a judge of the U.S. Bankruptcy Court for the Southern District of New York, Reuters reported.
A Key Move Amid Bankruptcy Proceedings
The airline filed for its second bankruptcy petition in August, pressured by declining liquidity and mounting losses. Since then, it has pulled out of 14 airports and rejected lease agreements for more than 80 aircraft.
As part of its strategy to redesign its network and reduce expenses, Spirit determined it no longer needed the four premium gates it held at O’Hare. It therefore decided to keep two gates and transfer the other two to American Airlines.
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Reduced Operations at O’Hare
On peak traffic days, Spirit operated around 32 departures from O’Hare. That figure has been cut in half, according to a court filing in November.
The decrease in activity was one of the factors that drove the gate transfer, as it no longer justified using all the assigned gates at an airport with high operating costs.
A Market-Driven Price
The deal was set at $15 million per gate. A court document details that both parties considered the amount reasonable under current market conditions and following extensive, good-faith negotiations.
A Move Toward Optimization
The transaction is part of Spirit’s effort to adjust its presence at key airports, preserve liquidity, and restructure its operations during the bankruptcy process. For American Airlines, the acquisition will strengthen its operational capacity at one of the nation’s busiest airports.
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