Spirit Get the Money

[captdawg]

Here it is, it's official.

PLEASE SHARE THIS MESSAGE WITH OUR COLLEAGUES WHO DO NOT HAVE ACCESS TO EMAIL.

Good Morning Everyone,

After months of work by many individuals, I'm delighted to share with you that Spirit has officially received an investment of $125 million from Oaktree Capital Management, a private investment firm based in Los Angeles. The funds will primarily be used to finance the acquisition of new aircraft, to invest in more time-saving technology for our employees and our customers, and to fund our aggressive growth plans.

I know all members of the Spirit family will join me in expressing appreciation to our Chairman, Ned Homfeld. Ned has requested to retire, knowing that the company he founded more than twenty five years ago stands poised confidently for the future. Without Ned, there would be no Spirit. His vision and devoted efforts have made an enormous contribution not only to the company, but to the travelling public in Detroit and elsewhere. We wish him the same success in all his future endeavors.

Our official news release follows. This news release will go out on the wires Monday afternoon. As promised, you, our employees are among the first to know. Some member of our company had been talking anonymously with the press which did not serve the company well. This could have affected our ability to complete the transaction and hurt our collective future plans.

We will be conducting employee meetings soon to help answer any questions you may have. In the interim, please stay focused on our customers and our day to day operations. We are in the midst of our peak season and we have the opportunity to serve and please many customers.

Thank you for your continued support and I will keep you updated as news develops.

Sincerely,
Jacob Schorr

 

[njcapt]

PLEASE SHARE THIS MESSAGE WITH OUR COLLEAGUES WHO DO NOT HAVE ACCESS TO EMAIL.

Good Morning Everyone,

After months of work by many individuals, I'm delighted to share with you that Spirit has officially received an investment of $125 million from Oaktree Capital Management, a private investment firm based in Los Angeles. The funds will primarily be used to finance the acquisition of new aircraft, to invest in more time-saving technology for our employees and our customers, and to fund our aggressive growth plans.

Our official news release follows. This news release will go out on the wires Monday afternoon. As promised, you, our employees are among the first to know. Some member of our company had been talking anonymously with the press which did not serve the company well. This could have affected our ability to complete the transaction and hurt our collective future plans.

Thank you for your continued support and I will keep you updated as news develops.

Sincerely,
Jacob Schorr

Wow, how refreshing it is to see an Airline announcing big news to the employees before they read about it in the USA Today (unlike anywhere I've worked).

Congrats to the Spirit employees.

 

[crashpad]

This is huge!!!

 

[JASP-1]

Spirit Airlines ownership change raises $125 million for new planes

By TOM STIEGHORST
sun-sentinel.com
Posted February 23 2004, 11:10 AM EST

Miramar-based Spirit Airlines said Monday it has raised $125 million in equity by selling majority ownership to investors led by Oaktree Capital Management, a Los Angeles venture capital fund.

Spirit employs about 2,700 people, including 1,200 in South Florida, and is the 14th largest U.S. airline with 115 daily departures. The money will let Spirit order new planes to expand its fleet of 32 aircraft.

In an interview, Spirit chief executive officer Jacob Schorr said the money was critical to keeping Spirit competitive with other low cost competitors. JetBlue Airways and AirTran Airways are two carriers who charge comparable fares to Spirit but have more modern planes that can fly longer each day at lower cost than Spirit's MD-80 fleet.

Schorr said the U.S. Department of Transportation has approved the investment.

Spirit founder and chairman Ned Homefeld will step down from active management of the airline, but remain an owner, said Schorr, who will assume the additional title of chairman.

Spirit's board will be expanded to give seats to the new owners.

Oaktree Capital Management has about $26 billion in assets under management, primarily for corporations, endowments and public agencies. Last year it acquired a 9.7 percent stake in US Airways, along with two other investors.

Spirit flies year-round from Fort Lauderdale/Hollywood International Airport, where it had 7.6 percent of traffic in 2003. It flies from Palm Beach International Airport during the winter months only. Email story
Print story



Copyright © 2004, South Florida Sun-Sentinel

 

[General Lee]

Sounds like Spirit will get new Airbus planes, right? I thought I posted an article last week stating that Boeing was not interested in dealing with Spirit. Well, those Airbus planes seem a lot more comfortable......


Bye Bye--General Lee

 

[MX Rider]

Show them the Money!!!!!!!

Great News! Congrats to all at SPIRIT. Your hard work and dedication looks as though it is WORKING. Keep It Up!

 

[enigma]

Sounds like Spirit will get new Airbus planes, right? I thought I posted an article last week stating that Boeing was not interested in dealing with Spirit. Well, those Airbus planes seem a lot more comfortable......


Bye Bye--General Lee

The newhires know more than do I about these things, but it would certainly seem that Scarebus has the inside track. Embraer might seem like a possibility, but our niche couldn't be served with 100 seat aircraft. We heard rumors earlier that Spirit was actually close to leasing six 200 seat A321's. Obviously, the bosses want more seats, not fewer. However, I reserve the right to be surprised by any and all management decisions. They know more than I about the markets they feel to be profitable. I'll venture a guess that we will see an A320 order in about six weeks.

regards, and still hoping for a Boeing order.
enigma

 

[lowecur]

Embraer might seem like a possibility, but our niche couldn't be served with 100 seat aircraft. I'll venture a guess that we will see an A320 order in about six weeks.

I wouldn't rule out a double order. Airlines today need to cover their behind with whats going on with MAA. Besides, business models are constantly changing.

Your planes have 140 coach seats and 16 FC. The 320 may configure to those numbers, but the coach pitch would be tight. More than likely you're looking at 130 coach and 16 FC on the 320, for a total of 146.

The 190 with a 2 class split is 96, with 8 FC, or the 195 would split out to a total of 108. The 190 would be the better choice due to it's range. Your hub in Detroit is around 1800NM from both LAX and SFO, so there wouldn't be any trouble making it with the 190.

 

[JayDub]

The 190 would be the better choice due to it's range. Your hub in Detroit is around 1800NM from both LAX and SFO, so there wouldn't be any trouble making it with the 190.

I just spoke with some guys on our EMB-190 team the other day. They don't believe the numbers Embraer is publishing on range. It may get that far to dry tanks, but it has yet to be seen if it will have that for usable range.

Respectfully,

JayDub

 

[enigma]

I wouldn't rule out a double order.

I won't rule out a double order, but I will rule out three types on property. They may order double, but they won't take delivery of the second type until the entire 80 fleet is retired. I don't think that there is any way a small company could afford the costs operating three types even for a short time. Doing so would require a massive oversupply of pilots, even if only for a short time and we already know that management is not happy with an oversupply of pilots. Our ops management managed to hide a few pilots early last year, but eventually the furlough notices came out. I wouldn't want to be hired into a position that would go away as soon as the last 80 went out the door and that will be what happens unless we engage in some massive, I mean huge, growth.

regards,
enigma