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Spirit Airlines has scrapped its plans to furlough hundreds of pilots without pay, but the reversal has little to do with an improvement in the airline’s financial outlook. Instead, the decision reflects a sharp increase in voluntary resignations as pilots leave the low-cost carrier amid ongoing uncertainty tied to its second Chapter 11 bankruptcy.
Earlier this year, Spirit shared plans to furlough as many as 365 pilots and downgrade 170 captains to first officers early next year. The airline began downsizing aggressively, eliminating unprofitable routes, reducing flight schedules, and returning aircraft to lessors. With fewer planes flying, Spirit projected that it would not need as many flight crew members.
Soon after the announcement, the Air Line Pilots Association (ALPA) began tracking attrition among Spirit pilots and found that resignation rates were exceeding expectations. The need for a furlough became unnecessary, as so many pilots voluntarily exited the airline to pursue more stable opportunities. Spirit has now fully canceled pilot furloughs. Instead of downgrading 170 captains, only 25 will be impacted. That is a dramatic shift from the original plan, which would have forced more than 10% of the airline’s roughly 3,000 pilots out of their jobs.
Pilot furloughs may have been called off, but the airline will close its Las Vegas Harry Reid International Airport (LAS) pilot base and offer affected pilots the option to relocate to Fort Lauderdale-Hollywood International Airport (FLL) or Newark Liberty International Airport (EWR). Those who will need to commute might find it not worth it and leave the airline as well. The broader restructuring highlights the reality that Spirit is becoming a far smaller airline. The cancellation of furloughs is not a sign of recovery, but rather a reflection of how quickly staffing levels are shrinking without formal layoffs.
Spirit’s staffing challenges are coming in the midst of difficult labor negotiations. In order to secure Debtor-in-Possession financing during bankruptcy, the airline was required to renegotiate contracts with pilots and flight attendants. Spirit sought approximately $100 million in labor concessions with the majority expected to come from pilots due to their higher wages. Significant contract cuts were decided with provisions that allow for restoration if the airline returns to profitability. Uncertainty about Spirit’s long-term future continues to weigh heavily on employees.
Anthony’s Take: The surge in pilot resignations is hardly surprising. Alongside pay cuts and base closures, Spirit pilots are facing an uncertain future. Even without furloughs, I don’t blame pilots for not wanting to wait and see what happens.
(Image Credits: Spirit Airlines.)
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2 comments
Should read: “Spirit Airlines Cancels Planned Pilot Furloughs as Pilots Flee for United and Delta”
They are abandoning a sinking ship (or airline in this case), can’t blame them of course, there are better opportunities elsewhere.