4 ms·
The company is not forced to sell immediately to whoever offers it money, they can sell themselves off for parts. I heavily doubt PE firms are interested here
by cuuupid 5mo ago
The company is not forced to sell immediately to whoever offers it money, they can sell themselves off for parts.
I heavily doubt PE firms are interested here as there is no potential for growth or a multiple. Spirit's assets are mainly their fleet, there are like 4 maybe 5 people who could buy, of these 2-3 are facing similar financial crises.
In the US I think nobody except United can afford to make a move, more likely some Asian airlines will move; many have grown and have route demand they can't service due to lack of aircraft. If you fly to Asia often you'll note that much of the time Asian airlines have to operate an aircraft from a US airline.
- selectodude 5mo agoSpirit's assets are almost entirely their slots at ORD, EWR, LAX and LGA. They don't many of their planes.
- cuuupid 5mo agoI hear this a lot but their fleet is valued upwards of a billion, they own most of their fleet it was just financed with debt (it's not like a house where the bank has equity in the asset, the lender has debt with spirit and levers on that debt that control what it converts to on default but Spirit legally owns the planes). The slots are <100M total
- victorbjorklund 5mo agoHuh? What do you mean? They and Wizz air are public companies. Nothing would stop them from selling their planes etc.