Washington, USA – Legal documents revealed that American Airlines has filed a formal request with the court asking to be listed as a party that must be notified immediately.-Spirit Airlines
In any potential future bankruptcy proceedings that the budget airline Spirit Airlines may take.
This proactive request reflects the uncertainty surrounding the future of “Spirit”,
Especially after the collapse of the proposed acquisition deal by JetBlue.
The deal, valued at approximately $3.8 billion,
It was recently cancelled following strong opposition
from the US Department of Justice.
Which filed a lawsuit claiming that it would harm competition and raise prices for consumers.
Under U.S. law, submitting such a “Notice of Appearance”
It guarantees that American Airlines will remain informed of
all developments, deliberations, and legal proceedings.
This is in the event that Spirit does indeed file for Chapter 11 bankruptcy protection.
This is despite the fact that Spirit Airlines has not issued
any official announcement regarding the bankruptcy filing.
The cancellation of the JetBlue deal left it in a difficult financial position.
It faces challenges related to debt and increasing
competitive pressures in the crowded aviation market.
American Airlines aims, through its request,
to protect its potential commercial interests.
Including any contracts or operational relationships that may link it to “Spirit”,
Or to ensure receipt of any entitlements in the event of asset liquidation.
Both airlines declined to comment immediately on these legal developments.
