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Spirit Airlines to furlough 270 pilots in restructuring plan

Spirit Airlines to furlough 270 pilots in restructuring plan

USA Today6 days ago
Spirit Airlines announced plans to furlough about 270 pilots this fall as the company continues to find its financial footing after emerging from bankruptcy protection in March.
The furloughs go into effect on Nov. 1, the U.S. pioneer of no-frills travel confirmed in a statement to USA TODAY Monday, July 28, adding that the decision will better support its flight staffing schedule.
Additionally, the airline confirmed plans to downgrade the positions of 140 pilots as soon as Oct. 1.
"We are taking necessary steps to ensure we operate as efficiently as possible as part of our efforts to return to profitability," the airline said. "We recognize the weight of this decision and are committed to treating all affected Team Members with compassion and respect during this process."
The furloughs were first reported by Bloomberg News, which stated that the budget carrier has aimed to rebrand itself as a premium airline.
Airline emerged out of bankruptcy in March
The furloughs and downgrading come as the airline finished emerging from bankruptcy in March.
In early 2024, a planned merger with JetBlue Airways valued at $3.8 billion fell through. Prearranged Chapter 11 bankruptcy protection granted the company a $350 million equity investment from existing bondholders.
Last month, Spirit Airlines urged the Transportation Department to reject a proposed partnership between JetBlue Airways and United Airlines that would allow customers to book flights on both carriers' websites. Under the deal, travelers could also earn and use points interchangeably between their frequent flyer programs.
Spirit accused the partnership of being anticompetitive, arguing that it would encourage other large carriers to follow suit.
"This anticompetitive tie-up involving a dominant legacy carrier will neutralize the competitive benefit of an existing low-fare competitor," Spirit said.
Contributing: Reuters and Zach Wichter, USA TODAY
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140-year-old college, forced to close after Chapter 7 bankruptcy
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140-year-old college, forced to close after Chapter 7 bankruptcy

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The housing market is changing. Is a low-fee real estate agent the way to go?

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Craft beer is dying, but this brewer is bucking the trend
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Related: Another popular beer and brewery brand files Chapter 11 bankruptcy The Boston Brewing Company acquisition was worth around $300 million in cash and stock to the Calagiones. Following the merger, Calagione joined Boston Beer's board of directors, and he and his wife Mariah are the company's largest individual shareholders outside of Jim Koch, founder and chairman of The Boston Beer Company. Today, Dogfish Head's portion of the Boston Beer Company's sales is around $275 million (out of a total $2.01 billion), according to RocketReach. So what's Dogfish Head's secret? There's more than one. First, Dogfish Head has been making ready-to-drink canned beverages almost since day one. The company distills its own Dogfish Head spirits, including vodka ("Awe-Spray"), gin ("Compelling"), and rum ("Barrel Honey") for use in its Vodka Lemonade, Vodka Mule, and Rum Mai Ta, among other drinks. 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Dogfish Head has always been known for its off-centered ales, using unexpected ingredients – from black limes and saffron to Mace and even human saliva – to create bold flavors. One of its earliest successes was Midas Touch, a beer brewed with honey, white Muscat grapes, and saffron, inspired by an ancient recipe found in a 2,700-year-old drinking vessel from King Midas' tomb. The company's bestselling beer today is its 60 Minute IPA, which Calagione says gives him inspiration even as he rethinks his own drinking. "I spend 60 minutes every day on a paddle board or my mountain bike out in the bounty of Mother Nature," he says. "I do that to earn my beer calories for the evening." When Dogfish Head Brewery was founded, Calagione says there were 600 craft brewers in the U.S. Today, there are around 10,000, so there is a lot of competition to fend off, but Dogfish Head is a model showing how craft breweries can evolve into multi-channel businesses that go beyond beer. "Short term we're facing some challenging trends, but we need to remember beer's been around and part of human community building for 10,000 years," he said. "There are a lot of closings and bankruptcies and sad stories," Calagione said. "So we're really excited to tell the story of how we're bucking those trends." Related: Popular Off the Las Vegas Strip casino bar closing The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.

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