Spirit Airlines CEO Takes Aim at Southwest's Controversial News: "I Think It's Going to be Painful for a Little Bit…"

Spirit Airlines is set to emerge from financial restructuring with “significantly less debt and greater financial flexibility” according to a statement from the airline.

©Spirit Airlines

The final result of the consensual, deleveraging transaction saw the equitizing of approximately $795 million of funded debt, as well as a $350 million equity investment from existing investors to “support Spirit’s future initiatives, including investments to provide guests with enhanced travel experiences and greater value.”

With those financial issues seemingly behind them, Spirit’s President and Chief Executive Officer Ted Christie has indicated that the company is setting their sights on the future, including seeing an opening to gain ground on Southwest Airlines thanks to the latter’s recent controversial baggage policy change, which sees them charging for checked bags for the first time in their history.

In an interview this week, Christie spoke about Southwest, and the opening he felt their move could provide for Spirit. “I think it’s going to be painful for a little bit as they find their footing, and we’re going to take advantage of that,” he said. “There at least was an audience of people who were intentionally selecting and flying Southwest because they felt that it was easy. They knew they were going to get two bags,” Christie said. “Now that that’s no longer the case, it’s easy to say that they’re going to widen their aperture and they’re now going to look around.”

©Spirit Airlines

Christie also spoke more generally about Spirit’s attempt plans for the future coming out of financial restructuring. As part of an official release from the company, he said, “We’re pleased to complete our streamlined restructuring and emerge in a stronger financial position to continue our transformation and investments in the guest experience. Throughout this process, we’ve continued to make meaningful progress enhancing our product offerings, while also focusing on returning to profitability and positioning our airline for long-term success. Today, we’re moving forward with our strategy to redefine low-fare travel with our new, high-value travel options. I’m incredibly proud of our Team Members for their continued dedication to our Guests and each other throughout this process. Despite the challenges we’ve faced as an organization, we’re emerging as a stronger and more focused airline.”

Spirit Airlines has emerged from financial reconstruction seemingly in a much healthier place, and is seemingly ready to challenge Southwest Airlines, seeing the latter as potentially vulnerable given their recent controversial bag policy changes. Stay tuned to AllEars for more airline industry news.