Next Steps on Spirit Bankruptcy, 9/17/2025
AFA is prepared for next steps management may take in the bankruptcy process. Although management has not yet indicated they will seek to make changes to our CBA, our bankruptcy attorneys working alongside our AFA legal department are prepared for any next steps management may take. Again, this bankruptcy will be much more difficult than the last one and we must be prepared to act to protect our interests as Flight Attendants. As discussed below, you’ll see that these efforts are already paying off with the bankruptcy court announcing that AFA has been appointed to the important creditor’s committee.
Under bankruptcy law, management may ask the court for changes to our contract. There are two paths under the bankruptcy code management may use to seek changes to our contract. In both cases there must be a good cause and the company must demonstrate to the court that the changes to the CBA are “necessary” and “fair and equitable.”
Section 1113(c) of the bankruptcy code provides for the ability of management to reject all or part of our CBA, but only upon satisfying these standards and negotiating in good faith with AFA. The timeline is compressed compared to normal negotiations though with only a requirement of 90 days of negotiations before petitioning the court to approve forced changes to the contract.
Section 1113(e) of the bankruptcy code permits management to seek emergency and streamlined changes (such as limiting changes to a temporary wage cut as opposed to changes to scheduling or benefits) to the CBA, but this is only under extreme situations, and is typically used to avoid ceasing operations and liquidation of the company.
Again, management has not yet advised that they are seeking to pursue either avenue of relief, but we are closely monitoring the developing situation in the bankruptcy court and will keep you updated of any changes. In the meantime, we will continue to work with our attorneys and continue advocating on our behalf to ensure that the future of this company reflects the significant contributions we make everyday.
Good news: AFA Appointed to Unsecured Creditor’s Committee
Additionally, the court announced AFA has been appointed to the unsecured creditor’s committee for the bankruptcy. This is the first result of our representation in this bankruptcy. Having a place on this Committee is very important. As a member of the Committee, we will directly review the business operations of Spirit Airlines, participate in the reorganization plan, and ensure that the interests of Flight Attendants and all unsecured creditors are a priority.
In addition to AFA, the other members of the creditors committee include:
AGI Ground, Inc.
Perimeter International dba PGL
Jasiel Moreno
SMBC Aviation
Aviation Capital Group LLC
Lufthansa Technik AG