April 08, 2024
Thom Carroll/for PhillyVoice
Spirit Airlines is reportedly shutting down its crew base at the Atlantic City International Airport. In an attempt to bounce back financially, it will also defer the delivery of new planes and furlough 260 pilots.
Spirit Airlines is shutting down its crew base at the Atlantic City International Airport (ACY), according to reports.
Staff from that location will be reassigned, CNBC reported. The news of the closure comes as Spirit announced Monday its agreement with Airbus to defer the delivery of new planes and furlough 260 pilots.
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The company said these moves will save them $340 million over the next two years. Spirit, a discount carrier based in Florida, has faced multiple financial setbacks in recent years. Spirit has struggled to bounce back from the COVID-19 pandemic and has reported losses in each of the past four years, the New York Times reported.
In January, a federal judge blocked Spirit's proposed merger with JetBlue Airways, citing that the deal would harm consumers. Spirit has also faced ongoing problems with the grounding of many of its Airbus planes due to a recall of engines by Pratt & Whitney, but it has reached an agreement to receive compensation from the manufacturing company that could boost its liquidity between $150 million and $200 million.
"This amendment to our agreement with Airbus is an important part of Spirit's comprehensive plan to bolster profitability and strengthen our balance sheet," Ted Christie, Spirit's president and CEO, said in a release. "Deferring these aircraft gives us the opportunity to reset the business and focus on the core airline while we adjust to changes in the competitive environment. In addition, enhancing our liquidity provides us additional financial stability as we position the Company for a return to profitability."
Spirit is currently the lone commercial carrier at ACY, although American Airlines offers a service where customers can go through security at the small Atlantic City airport before hopping on a bus to catch their flights at the Philadelphia International Airport. From Atlantic City, Spirit offers direct flights to several Florida cities as well as Myrtle Beach. The airline also offers flights from Philadelphia.
A Spirit spokesperson said the airline's decision to close its ACY crew base was "difficult," citing the grounding of aircraft due to engine availability issues and its delivery deferral agreement with Airbus. The spokesperson noted that daily departures from ACY have decreased to 8-10 flights, depending on the season, and that most of them are to its largest crew bases in Florida. The closure takes effect Sept. 1.
"Scheduled service at ACY will continue to operate as planned now and in the future," the spokesperson said. "Additionally, Spirit is actively evaluating opening a new Crew Base in the Northeast to provide coverage from one of our larger cities, and we hope to be able to finalize a new Crew Base in the near future."
A spokesperson for the South Jersey Transportation Authority also said the closure should not affect flight offerings at the airport.
"The Spirit Airlines flight attendants and pilots based out of ACY will be missed, and our thoughts are with them during this transition," the SJTA spokesperson said.
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