Spirit Airways introduced on Monday that president and CEO Ted Christie has formally stepped down from his function and resigned from the board of administrators, efficient instantly — a number of months earlier than he turned eligible to obtain a $3.8 million retention bonus.
The transition comes because the Florida-based low-cost service continues to grapple with monetary woes, ongoing restructuring efforts and a latest Chapter 11 chapter submitting.
On March 12, Spirit Airways put out an announcement indicating that it had emerged from Chapter 11 proceedings by lowering roughly $795 million in debt by means of a consensual deleveraging plan.
The corporate additionally secured a $350 million fairness funding from current traders to help future development and improve buyer experiences.
“Spirit will continue to be led by Ted Christie, President and Chief Executive Officer, and its existing executive team,” the corporate stated in an announcement. It’s unclear what prompted the airline to reverse course in such a brief time period.
Only a week previous to the chapter submitting in November, Christie reportedly obtained a $3.8 million retention bonus — cash he was entitled to maintain if he remained with the agency for an additional yr.
However his ouster seemingly implies that he received’t see any of that bonus cash.
A Spirit Airways spokesperson declined to remark.
The corporate has not but named a everlasting successor however has put in an interim Workplace of the President whose members will collectively run the airline earlier than a brand new CEO is called.
That staff will embrace Fred Cromer, government vp and chief monetary officer; John Bendoraitis, government vice President and chief working officer; and Thomas Canfield, senior vp and common counsel.
“On behalf of the Board and the Spirit team, I thank Ted for his tireless efforts over the course of his 13 years at the Company,” stated Robert Milton, chairman of Spirit Airways.
“He has seen a lot and done a lot during his tenure here, including navigating the Company through the COVID crisis and multiple strategic junctures, as well as most recently, a corporate restructuring. Ted has kept the company together through challenging times, and for this we wish him all the best going forward.”
The management overhaul didn’t cease there.
Matt Klein, government vp and chief industrial officer, can be stepping down.
He will probably be succeeded by Rana Ghosh, who has been with the corporate since 2015 and most lately served as chief transformation officer.
His new appointment as chief industrial officer is efficient instantly.
In November 2024, Spirit Airways filed for Chapter 11 chapter safety because of the airline’s vital monetary challenges — together with losses exceeding $2.5 billion since 2020 and its greater than $1 billion in debt obligations.
Moreover, the airline has additionally needed to grapple with elevated working bills and heightened competitors from bigger carriers. Its failed merger makes an attempt with Frontier Airways and JetBlue Airways contributed to its monetary instability.
The airline, identified for its ultra-low-cost mannequin, has been underneath strain as shopper demand has shifted towards full-service carriers.
Spirit’s once-successful technique of flying longer hours and squeezing extra seats into plane helped produce sturdy margins for years however proved much less efficient post-pandemic.
Utilization charges have dropped 16% in comparison with 2019, whereas inflation and altering traveler habits have additional eroded its buyer base.
Compounding its challenges, Spirit noticed a deliberate $3.8 billion merger with JetBlue Airways blocked in courtroom.
Merger talks with Frontier Airways additionally collapsed.
The failed offers and ongoing market pressures have left the once-rising price range airline combating for survival because it navigates chapter safety and rebuilds its management staff.
