American Airlines asks for notifications regarding Spirit’s bankruptcy proceedings
American Airlines (AAL.O) has filed a notice of appearance in the bankruptcy proceedings of Spirit Aviation (FLYYQ.PK) and has requested to receive all notices and papers served in the future, as stated in a court filing.
In August, Spirit filed for bankruptcy for the second time as it faced declining cash reserves and increasing losses. The airline announced that it is considering all possible options in its restructuring process, which may include a merger or sale of the company.
On December 5, American Airlines submitted a filing in the Southern District of New York, seeking to obtain all notices, including operating reports, plans for reorganization, and liquidation statements.
An American Airlines spokesperson stated that the filing pertains to a “airport-specific agreement.”
Spirit did not respond to a request for comment.
Spirit had previously indicated that it was exploring various options for the airline’s future.
The outcome that maximizes value could involve a merger or sale of the company; Spirit is diligently exploring all potential opportunities. According to an October SEC filing, Spirit stated that the company is currently involved in discussions with several interested counterparties.
Earlier this year, the U.S. Supreme Court denied a request by American Airlines to overturn a judicial ruling that determined the company’s abandoned partnership with JetBlue Airways (JBLU.O) in the U.S. Northeast violated federal antitrust law.
JetBlue has formed a partnership with United Airlines (UAL.O), enabling travelers to book flights through both carriers’ websites.
In June, Spirit Airlines called on the U.S. transportation authority to dismiss the partnership between United and JetBlue, arguing that it was anticompetitive and could encourage other major airlines to seek similar arrangements.
