Spirit Airlines Receives $140 Million Credit Support from IAE
Spirit Airlines has reached a new agreement with International Aero Engines (IAE) due to the financial impact caused by the Pratt & Whitney PW1100G engine recall. The U.S. Bankruptcy Court for the Southern District of New York approved the agreement, which provides up to $140 million in credit support to Spirit and reduces certain maintenance obligations.
The credit will be made available to Spirit in installments spread over several years, starting in the coming days. Under the agreement, Spirit will limit its fleet of PW1100G-powered A320neo aircraft to between 10 and 28 units, while retaining at least 78 aircraft in its V2500-powered A320ceo fleet.
Due to manufacturing-related issues with the PW1100G engines, Spirit was forced to ground a significant number of aircraft and is now aiming to downsize its fleet as part of its restructuring process.
