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Spirit Airlines apologizes after shock shutdown: 'Thank you and sorry to the American public' (www.nbcnews.com)
submitted 6 months ago by to c/news@lemmy.world
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Spirit Airlines apologized to the American public during a last minute bankruptcy hearing Tuesday morning just days after its shock shutdown.

The budget-friendly airline shut down with immediate effect Saturday, impacting thousands of passengers who became stranded and nearly as many employees.

Marshall Huebner, an attorney for the former airline, took the stand in front of Judge Sean H. Lane in a White Plains, New York, courtroom to discuss the hardship it encountered that led to its shutdown, including a dramatic rise in fuel prices resulting from the U.S. and Israel's war with Iran.

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[–] 10 points 6 months ago* (last edited 6 months ago) (4 children)

Everytime I've been hearing about Spirit Airlines lately, I hear about how this guy trying to rally people to pledge money to buy Spirit Airlines in the hopes of making it community-owned. The problem is, according to their website:

"PROPORTIONAL PROFIT SHARES

Under the proposed Spirit 2.0 cooperative structure, profit-sharing distributions would be allocated proportionally to pledge amount. This is a proposed model only — not a confirmed financial arrangement. The final structure must be reviewed and approved by qualified securities counsel before any binding commitments are made.

PROPOSED ONLY: Profit shares would scale with pledge amount under the proposed structure. This is not a confirmed financial instrument. Nothing here constitutes an offer of securities."

So while I want to see them convert Spirit Airlines into a community-owned airline business (which would be amazing), I need to see this as a confirmed structure first. I can't shake the feeling that maybe they would steal all the pledge money and then keep it privatized.

Maybe I'm being too skeptical, idk.

EDIT: There's a legal notice on the page:
"LEGAL NOTICE: Non-binding pledge of intent only. No money collected. All profit-sharing, dividends, voting rights and ownership references are proposed concepts only — not confirmed. Nothing here is a securities offering, investment contract, or financial instrument. Subject to review by qualified securities & aviation counsel. Participation does not guarantee ownership or financial return."

I went ahead and pledged, confirmed no money was taken out of my account or anything. Hope this is going to happen.

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  • [–] 7 points 6 months ago (1 child)

    They're not actually taking any money yet.

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  • [–] 3 points 6 months ago

    This is a good point:

    "This is a non-binding pledge of intent only. No funds are collected at this stage. This is not a securities offering, investment contract, or financial instrument. Any references to profit-sharing, dividends, or ownership are proposed concepts only — not confirmed arrangements. The final cooperative structure must be reviewed and approved by qualified securities and aviation counsel before any binding commitments are made. Participation does not guarantee ownership, financial return, or membership in any final entity."

    Still though, I worry that a lot of people are going to be tricked into thinking it'll be one thing, give money (once they're actually taking money), and be deceived. Keeping my eye out, just in case, and hopefully others are keeping an eye on it, too.

    If they do solidify it being owned by the people like how they're advertising, that's awesome and I'm in.

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