Spirit Airlines Prepares to Shut Down

Spirit Airlines is expected to cease operations early Saturday morning around 3 a.m. Eastern, after a last-ditch $500 million rescue deal collapsed. The airline had been in Chapter 11 bankruptcy for roughly a year and a half. Its bondholders dug in their heels, convinced the deal wasn't in their best interest, and there was disagreement within the Trump administration over whether to provide a lifeline. President Trump said he would only agree to a deal if it was "a good deal." The talks are over, and the airline is shutting down.

WSJ reporter Alison Sider described Spirit as "a shadow of its former self." The airline was once an industry maverick that went head-to-head with larger carriers and helped keep fares low. It also pioneered the "nickel and diming" fee model in the U.S.—charging super-low base fares and then fees for almost everything else, including water and printed boarding passes. But in the years since, most major airlines have adopted many of those same practices. Some of Spirit's competitors have been "almost hoping" this would happen, Sider said, because it removes capacity from the market and reduces competition. "It's the end of the line for an airline that was really revolutionary in its time and helped bring cheap air travel to the masses."

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