United Airlines CEO rules out bid for Spirit Airlines

United Airlines CEO Scott Kirby is once again making headlines for his blunt assessments of Spirit Airlines, saying this week that United will not pursue any of the bankrupt discount airline’s assets if they come up for sale. 

Speaking to reporters at Newark Liberty International Airport (EWR) in New Jersey on September 16, Kirby dismissed the idea of acquiring parts of Spirit’s network or fleet, calling the assets impractical for United. He cited limited gate availability in Spirit’s key markets and the high cost of converting its all-Airbus fleet to United standards.   “It would cost about $15 million per airplane to reconfigure them,” he said, according to Reuters, adding that United’s fleet plan already has a clear trajectory. 

Kirby’s comments come about a month after Spirit filed for bankruptcy protection for the second time in a year, following a failed restructuring effort. The Florida-based ultra-low-cost carrier is shrinking its fleet and route map, a move that is expected to put gates, aircraft, and other assets on the sales block. 

The remarks by Kirby appear to fit a common pattern. He has repeatedly predicted Spirit’s demise, saying earlier this month that “consumers voted and it failed” when it came to the ultra-low-cost model. He has called Spirit’s approach “an interesting experiment” that simply does not work, pointing to bare-bones service and high ancillary fees that often frustrate passengers.  

“You can’t have a business model that customers hate,” Kirby said at the U.S. Chamber of Commerce’s aerospace summit in Washington recently. 

Spirit, for its part, has not taken the criticism lightly. Executives have argued that Kirby and other United leaders are “obsessed” with their airline, noting that there remains strong demand for rock-bottom fares, even if the product comes with fewer amenities.  

Spirit has long defended its à la carte pricing as transparent, saying it gives passengers control over what they want to pay for. The company maintains that, while the restructuring is painful, there is still a future for its brand and the cost-conscious travelers who choose Spirit over other carriers. 

Why, then, is Kirby so interested in talking about Spirit? There could be several layers to United’s strategy, according to industry watchers. 

First, there is a competitive angle. Spirit’s retreat will leave gaps in markets such as Florida and the Caribbean, where United has been adding service. By highlighting Spirit’s vulnerabilities, Kirby may be signaling to both customers and investors that United is well positioned to capture demand if and when Spirit shrinks further. United has already said it is boosting flights in certain cities served by Spirit “to give their customers other options.”

Second, there is a narrative-shaping element. By declaring the ultra-low-cost model dead, Kirby is drawing a contrast with United’s own strategy of investing in new aircraft, premium cabins, and a more service-rich experience. That message may resonate with Wall Street.

Third, there are regulatory and merger politics in play. Spirit has been at the center of high-profile antitrust battles, most recently when the Justice Department blocked JetBlue’s proposed acquisition. By publicly doubting Spirit’s future, Kirby could be positioning United as a stable counterweight in policy debates about industry competition and consolidation. 

And finally, there are hard economics. Integrating Spirit’s aircraft and operations into United’s system would be a costly headache. Kirby’s $15 million per-plane estimate underscores why he believes pursuing those assets makes no financial sense. In this telling, his repeated commentary is not obsession but explanation — why United is staying the course rather than chasing a distressed rival. The post United Airlines CEO rules out bid for Spirit Airlines appeared first on AeroTime.

Go to Source