Big Airbus Order Cancelled

A sizeable order for Airbus aircraft, which also included options, has now been cancelled by Spirit Airlines.

The U.S carrier, which is struggling as it has entered bankruptcy protection for the second time in as many years, confirmed the fleet optimisation change.

As part of the agreement, AerCap will now assume ownership of the aircraft orders. This is a leading global lessor, which will result in orders placed elsewhere, but not simply by Spirit Airlines, which has cancelled and thus rejected any plans to bring the planes on.

This deal had previously seen Spirit Airlines commit to 52 of the A320neo family jets. Additionally, options for 10 units also existed, which the U.S. carrier will not be taking on.

The broader adjustment to the Spirit Airlines fleet is part of a three-way agreement, which the U.S. Bankruptcy Court in the Southern District of New York approved on Friday.

Other changes have also occurred as part of the relationship between AerCap and Spirit Airlines for Airbus aircraft, which have encountered their fair share of challenges in recent times.

Therefore, while headlines will surround this previously proposed aircraft deal no longer going ahead, there has also been movement on the rejection of leases held by Spirit Airlines, which pushed the carrier further into the situation it finds itself in today.

Accompanying the agreement, a $150 million payment from AerCap will be received, which will be allocated towards Spirit Airlines in exchange for the cancellation of 27 leases.

Moving forward, Spirit Airlines anticipates entering into new lease agreements for A320 and A321 aircraft, with deliveries scheduled to occur over a three-year period starting in 2027. However, lease rights for upcoming jets were also scrapped as part of the restructuring.

These decisions follow Spirit Airlines’ confirmation of plans to significantly reduce its fleet in a streamlined manner, becoming more agile moving forward and addressing the associated aircraft problems it has been experiencing.

The airline’s CFO, Fred Cromer, said that it would axe nearly 100 Airbus aircraft as part of ongoing restructuring, which would save hundreds of millions of dollars, a decision typical of businesses struggling to survive.

With the significant reduction in fleet, Spirit Airlines will also see a shrinking of its network as it begins to exit more markets with fewer seats available, which will also be visible through the furloughing of one-third of its cabin crew.

Many onlookers have cast doubts about the long-term survival prospects of Spirit Airlines, including fellow U.S. carrier United, despite the adversity the low-cost unit continues to face. Nevertheless, Spirit remains committed to iniaitives to ensure its long-term viability.

Spirit Airlines’ Airbus Fleet

Spirit Airlines relies solely on Airbus aircraft, with a fleet of nearly 200 aircraft; the latest data shows that just 148 units remain in service.

The airline’s fleet comprises solely the A320 family, with 141 A320 family members to its name, spread across 50 A320-200 models and 91 A320neo models.

Unfortunately, even before the U.S. carrier once again entered bankruptcy protection, it had been heavily impacted by the ongoing Pratt & Whitney engine supply chain crisis affecting GTF engines, which had pushed jets to be grounded for extended periods due to maintenance issues.

Latest data now show that the airline’s fleet of A320neo jets has more units parked than active, equating to 47 aircraft parked and 44 jets in service, with the average age being just 4.3 years.

Meanwhile, Spirit Airlines also operates the Airbus A321 family, comprising 22 A321-200s, followed by a commitment to the new engine option, with 32 units in service for this type at an average age of 1.4 years, the youngest in the business.