Spirit Airlines files for bankruptcy

Spirit Airlines Inc. has filed for bankruptcy protection following heightened competition from rival carriers and financial setbacks after its failed merger with JetBlue Airways Corp.

The airline filed Chapter 11 in New York listing assets and liabilities of between $1 billion and $10 billion, according to a court document, News.Az reports, citing foreign media.

Spirit has struggled since a federal judge scuttled that $3.8 billion acquisition by JetBlue, ruling the combination would harm cost-conscious travelers by driving up the price of airline tickets across the industry. The federal government had challenged the tie-up on antitrust grounds.

The airline is also been under increased pressure from larger carriers that have offered travelers more affordable tickets. The company filed for bankruptcy after reaching an agreement on a broad debt restructuring with a majority of its loyalty and convertible bondholders.

News.Az