By Aishwarya Jain and Doyinsola Oladipo (Reuters) -Spirit Airlines said on Monday it is preparing to furlough one-third of its flight attendants after filing for its second bankruptcy in a year, as the carrier grapples with dwindling cash and mounting losses. The low-budget airline will temporarily lay off about 1,800 flight attendants from its total […]
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Spirit Airlines preparing to furlough one-third of its flight attendants
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By Aishwarya Jain and Doyinsola Oladipo
(Reuters) -Spirit Airlines said on Monday it is preparing to furlough one-third of its flight attendants after filing for its second bankruptcy in a year, as the carrier grapples with dwindling cash and mounting losses.
The low-budget airline will temporarily lay off about 1,800 flight attendants from its total strength of approximately 5,200, effective December 1.
Spirit filed for bankruptcy again last month after a previous reorganization failed to put it on firmer financial footing. The company forewarned job cuts in a memo sent to employees last Wednesday, adding that it also plans to slash flight capacity 25% year-over-year by November.
“We need to shift our focus to a complete rightsizing of the airline, which means volume-based adjustments to our flight attendant group,” the airline said in an email to employees seen by Reuters on Monday.
The Association of Flight Attendants in a separate memo, also seen by Reuters, said: “The problem is that the significant reduction of aircraft and flight hours requires a much higher reduction in force and the company is clear that a furlough is necessary.”
The airline, with more than 800 staff voluntarily absent now, has so far relied only on voluntary furloughs rather than imposing mandatory ones.
It will continue offering voluntary furloughs, even as it moves forward with additional staffing reductions. According to the union, voluntary furloughs are being offered for six months to one year time periods and are set to begin on November 1.
The union also said in its memo that it is coordinating to arrange preferential interviews for its members at other airlines.
Spirit’s financial difficulties, combined with U.S. carriers competing for premium travelers, have raised concerns that the era of ultra-low fares may be ending for budget-conscious passengers.
Last week, United Airlines said it would not pursue Spirit’s assets if they become available as part of the carrier’s restructuring.
(Reporting by Doyinsola Oladipo in New York, Aishwarya Jain and Aatreyee Dasgupta in Bengaluru; Editing by Shailesh Kuber amd Maju Samuel)