Spirit Airlines CCO Matt Klein ‘Very Pleased’ With New Initiatives; Company Will Be ‘Telling Its Story Publicly’ for 1st Time Through Advertising Campaign as It Confronts Bankruptcy Headlines

Credit Research: Meredith Dixon   Key Takeaways   The speed and aggressiveness with which Spirit Airlines is transforming its business and network, as described by CCO Matt Klein on a podcast this week, is noteworthy, in our opinion, as it suggests that the company may not yet be resigned to a near-term bankruptcy, particularly one that could involve a liquidation of assets.   In our opinion, these dramatic proposed changes are potentially a last-ditch effort by management to prove that Spirit “is good” and that flyers can have a premium experience on its aircraft. If the offerings do not gain traction, it seems more likely, in our opinion, that there will be a bankruptcy and a liquidation.   Despite over $1 billion in liquidity, the expiration of Spirit’s credit card processing agreement at year-end if the company fails to produce a solution for its $1.1 billion senior secured notes backed by the loyalty program by Oct. 21, as well as the same senior secured notes’ maturity next year, leaves the company beholden to those noteholders. On Aviation Week’s Window Seat Podcast this week, Spirit Airlines CCO Matt Klein elaborated on the strategic moves the airline has taken in response to[...]