Spirit Airlines Inc. is closing in on a deal with creditors that would restructure its crushing debt load in bankruptcy court after discussions for a tie-up with rival Frontier Group Holdings Inc. fell apart. In a filing late Tuesday, Spirit said it is in advanced talks with a super majority of its secured noteholders to hammer out a restructuring. That would be carried out in a Chapter 11 bankruptcy process, according to people with knowledge of the matter, who asked not to be identified discussing private talks. An agreement with creditors is “expected to lead to the cancellation of the Company’s existing equity,” Spirit said in the filing. Representatives for Spirit and Frontier declined to comment. Spirit Airlines had been in talks with Frontier about filing for bankruptcy as a way to facilitate a takeover by the rival discount carrier, Bloomberg previously reported. The Wall Street Journal reported Tuesday that Spirit’s merger talks with Frontier had broken down. The ultradiscount airline has been struggling to find a way forward after its proposed takeover by Jetblue Airways was blocked on antitrust grounds earlier this year. Negotiations with bondholders over the terms of a potential bankruptcy or out-of-court restructuring have been underway for months. Spirit’s creditors include holders of about $1b in so-called loyalty bonds — 8% notes due 2025 that are backed by claims on elements of the company’s frequent-flyer program — and $500m in unsecured convertible bonds due 2026.<br/>
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Gunfire hit a Spirit Airlines flight to Haiti on Monday, injuring a crew member, and may have struck a separate flight from the country as the State Department warned of “gang-led efforts” to stop travel to the Caribbean nation. Spirit confirmed in a statement that one of its flights from Fort Lauderdale, Florida, to Port-au-Prince, Haiti, was diverted to the Dominican Republic on Monday. It said an inspection of the aircraft showed damage consistent with gunfire. “One Flight Attendant on board reported minor injuries and is being evaluated by medical personnel,” the statement said. “No Guest injuries were reported.” Spirit said that it is suspending its services to Haiti pending “evaluation” of the incident and that the plane was being taken out of service for the time being. A return flight to Florida is being arranged for members of the crew and the passengers who were diverted to the Dominican Republic. The U.S. State Department subsequently issued an alert warning of “gang-led efforts” to stop travel to Haiti and cautioning Americans not to go there. Also on Monday, a post-flight inspection of the exterior of a JetBlue aircraft used for a trip from Port-au-Prince to New York City’s John F. Kennedy International Airport turned up evidence that it had been struck by a round, the airline said in a statement. “No issues were initially reported by the operating crew,” JetBlue said. The airline launched an investigation and said its flights to and from Haiti will be suspended through at least Dec. 2. It blamed “ongoing civil unrest” for the pause in travel.<br/>
Flag carrier El Al has had a record-breaking past year. Its share price has risen by 173% as the Israel-Hamas War caused other airlines to cancel flights, giving El Al a near monopoly status on many routes, Globes reported last month. The airline’s 2024 Q2 net profit was $147m, far and away from $59m a year ago, Reuters reported. Critics have accused El Al of price gouging, as some customers have struggled to book tickets for prices anywhere near what they booked before the war, and others have struggled to find tickets at all. The airline has said that it is doing all it can to provide a response to the “strong demand and unusual load on El Al’s service network.” Some consumers’ anger over ticket prices has been exacerbated by El Al’s marketing campaigns in which the company said it was supporting Israelis through the war and through the travel challenges imposed by it.<br/>
Administrators for Regional Express (Rex) will increase the Australian carrier’s operational fleet under a business improvement plan made possible after the government agreed to extend its financial support of the carrier. Rex entered administration at the end of July as its financial challenges mounted after an expansion into jet operations. While its Boeing 737 flights were immediately grounded, the airline has continued its Saab 340 regional flights after the government agreed to guarantee these services. Australia’s transport minister Catherine King on 12 November says the government has agreed to provide up to A$80m ($53m) in financing and extended its flight-booking guarantee to enable to Rex to continue flying during an lengthened administration process. Administrators will now seek an extension of the current voluntary administration until the end of July next year. “This will give regional aviation the best chance of a sustainable future,” King says. “The administration is progressing well and Rex’s regional flights are continuing to operate as normal. While our government’s guarantee remains in place, it has yet to be used and flight bookings are holding up.” Sam Freeman, from the Ernst & Young Australia team overseeing the airline’s administration, says the financing facility and extension will be used to invest in a business improvement programme to help position the airline for sale.<br/>