Spirit Airlines Orders Up to 95 Planes
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Spirit Airlines Orders Up to 95 Planes
I don't know if you gusy heard this yet but Spirit Airlines is ordering up to 95 Airbuses, replacing the it's MD-80 fleet. This whole deal could cost up to $5 billion. That's alot of airplanes.
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Here's the scoop...
Associated Press
Spirit Airlines says it will go to Airbus to replace MD-80 fleet
Friday March 19, 4:11 pm ET
FORT LAUDERDALE, Florida (AP) -- Spirit Airlines said Friday it had ordered 35 new airplanes from Airbus at a cost of $2 billion.
The low-cost carrier said it had agreements to buy up to another 60 Airbus aircraft and could spend as much as $5 billion total.
The new planes will replace the company's current fleet of 32 MD-80 aircraft. MD-80s were produced by McDonnell Douglas, which merged with Boeing Co. in 1997.
Last month, Spirit Airlines sold a controlling stake in the company to a Los Angeles venture capital fund for $125 million. The company said it wanted to use the proceeds to double its fleet over the next five years.
Jacob Schorr, chairman and chief executive of Spirit Airlines, said in a statement that the investment from Oaktree Capital Management LLC and the agreements to purchase the new aircraft would "allow us to accelerate our significant growth plans."
Low-cost airlines have been gaining ground on major carriers by luring passengers with discounted fares at less-congested airports. Spirit had an operating profit of $26 million last year, a 12 percent increase from 2002.
The discount airline has 2,700 employees that makes 115 daily flight departures to 16 destinations, including Orlando, Chicago, Denver, Los Angeles and New York. It has applied to the U.S. government to add about 10 new destinations in Latin America and the Caribbean.
Spirit Airlines: http://www.spiritair.com
Airbus: http://www.airbus.com
Spirit Airlines says it will go to Airbus to replace MD-80 fleet
Friday March 19, 4:11 pm ET
FORT LAUDERDALE, Florida (AP) -- Spirit Airlines said Friday it had ordered 35 new airplanes from Airbus at a cost of $2 billion.
The low-cost carrier said it had agreements to buy up to another 60 Airbus aircraft and could spend as much as $5 billion total.
The new planes will replace the company's current fleet of 32 MD-80 aircraft. MD-80s were produced by McDonnell Douglas, which merged with Boeing Co. in 1997.
Last month, Spirit Airlines sold a controlling stake in the company to a Los Angeles venture capital fund for $125 million. The company said it wanted to use the proceeds to double its fleet over the next five years.
Jacob Schorr, chairman and chief executive of Spirit Airlines, said in a statement that the investment from Oaktree Capital Management LLC and the agreements to purchase the new aircraft would "allow us to accelerate our significant growth plans."
Low-cost airlines have been gaining ground on major carriers by luring passengers with discounted fares at less-congested airports. Spirit had an operating profit of $26 million last year, a 12 percent increase from 2002.
The discount airline has 2,700 employees that makes 115 daily flight departures to 16 destinations, including Orlando, Chicago, Denver, Los Angeles and New York. It has applied to the U.S. government to add about 10 new destinations in Latin America and the Caribbean.
Spirit Airlines: http://www.spiritair.com
Airbus: http://www.airbus.com
