Spirit Airlines Is Winding Down All Operations

Re:Spirit Airlines Is Winding Down All Operations by mikelitoris on Saturday May 02, 2026 @03:09AM (#47984080)

Is this an actual question? I’ll answer it anyway: because they had nothing to do with financial market risk shenanigans and just wanted to get somewhere.

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[dead]

Re:Spirit Airlines Is Winding Down All Operations by _moof on Saturday May 02, 2026 @03:12AM (#47984103)

You've just decided, all by yourself, that customers are "low priority people." Why?

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Re:Spirit Airlines Is Winding Down All Operations by mrcartmeneses on Saturday May 02, 2026 @03:24AM (#47984169)

Sarcasm on an autism sub. Bold move!

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Re:Spirit Airlines Is Winding Down All Operations by charcircuit on Saturday May 02, 2026 @03:24AM (#47984160)

The law specifies the order people get paid out for a bankruptcy.

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Re:Spirit Airlines Is Winding Down All Operations by _moof on Saturday May 02, 2026 @03:34AM (#47984225)

Which law? 14 CFR Part 260 requires air carriers to refund tickets on cancelled flights.

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Re:Spirit Airlines Is Winding Down All Operations by charcircuit on Saturday May 02, 2026 @02:57PM (#47989312)

https://www.law.cornell.edu/uscode/text/11/507

14 CFR Part 260 I don't see having precedence. It is hard to punish a company that no longer exists.

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Re:Spirit Airlines Is Winding Down All Operations by dented42 on Saturday May 02, 2026 @03:27AM (#47984193)

I think the law is wrong…

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Re:Spirit Airlines Is Winding Down All Operations by KaiserPro on Saturday May 02, 2026 @03:34AM (#47984232)

Customers are creditors, as they have given money in credit in exchange for a service at a later date.

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Re:Spirit Airlines Is Winding Down All Operations by LeoPanthera on Saturday May 02, 2026 @03:12AM (#47984104)

If a customer hasn't taken their flight yet, they are a creditor.

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Re:Spirit Airlines Is Winding Down All Operations by RubberbandSoul on Saturday May 02, 2026 @03:35AM (#47984235)

Being a consumer/customer is different from being a creditor

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Re:Spirit Airlines Is Winding Down All Operations by charcircuit on Saturday May 02, 2026 @03:26AM (#47984184)

An unsecured creditor which gets paid out after secured creditors.

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Re:Spirit Airlines Is Winding Down All Operations by _moof on Saturday May 02, 2026 @03:10AM (#47984091)

The customers are creditors.

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Re:Spirit Airlines Is Winding Down All Operations by victorbjorklund on Saturday May 02, 2026 @03:24AM (#47984167)

It is a fair question. Normally customer creditors ends up last in the line.

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Re:Spirit Airlines Is Winding Down All Operations by _moof on Saturday May 02, 2026 @03:35AM (#47984239)

Aviation has stricter laws when it comes to customers. I don't have citations off the top of my head but it's not a normal customer-business relationship.

EDIT: 14 CFR Part 260.

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Re:Spirit Airlines Is Winding Down All Operations by iamflimflam1 on Saturday May 02, 2026 @03:27AM (#47984189)

I’m no expert, but a bit of googling tells us.

The laws around bankruptcy define the priority of who gets paid and in what order:

- Secured Claims

- Unsecured Priority Claims

- Unsecured Non-Priority Claims (General Unsecured)

- Equity Security Interests

Each layer has to be paid in full before the next layer.

Unsecured Priority Claims - this includes customers who have paid for services.

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Re:Spirit Airlines Is Winding Down All Operations by Ekaros on Saturday May 02, 2026 @03:31AM (#47984210)

Also with secured claims. What are they secured against? That is what is the collateral defined. If it is not cash... Well they will get their claims when collateral is liquidated.

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