Spirit Airlines Names New CEO

Spirit Airlines has emerged from bankruptcy with a new CEO, who came to the company from fellow discount carrier Sun Country Airlines.

The Sun-Sentinel reports that Spirit is now being led by 58-year-old David Davis, who most recently held the positions of president, chief financial officer, and Sun Country Airlines board member.

Spirit’s board chairman, Robert Milton, stated that Davis “brings with him a wealth of experience and a solid track record of accomplishments from his many years in the airline industry. Dave’s background at both Northwest Airlines and, more recently, at Sun Country Airlines, positions him well to lead Spirit’s continued transformation.”

Spirit’s transition involves offering more services to higher-paying clients to increase profits when traveler traffic falls across the board.

Ted Christie, who left Spirit Airlines after 13 years as president and CEO, was replaced by Davis earlier this month. Christie led the airline through COVID-19, ran a customer service improvement effort, reorganized its finances through Chapter 11, and continued to operate as an independent airline following failed takeover attempts by JetBlue Airways and Frontier Airlines.

According to a regulatory filing, the veteran airline executive signed a three-year contract that includes a $950,000 annual base salary and a $4 million signing bonus, which will be paid in two installments: the first on his start date of April 21 and the second on his first anniversary of employment.

Spirit Airlines Recently Exited Bankruptcy

A U.S. bankruptcy judge approved Spirit Airlines’ financial restructuring in February, enabling the low-cost carrier to convert $795 million in debt to equity and become a private company after filing for bankruptcy.

U.S. Bankruptcy Judge Sean Lane authorized the airline’s restructuring plan during a hearing in White Plains, New York. Under Spirit’s bankruptcy plan, existing stock shares are cancelled, and ownership is transferred to its lenders, who include investment firms managed by Citadel Advisors, UBS Asset Management, and Pacific Investment Management Company.

“We will emerge as a stronger airline with the financial flexibility to continue providing guests with enhanced travel experiences and greater value,” said Christie, then-CEO of Spirit Airlines.

As part of its bankruptcy arrangement, Spirit plans to issue new equity shares in order to raise an additional $350 million. According to the airline, its goal was to come out of bankruptcy by the first quarter of 2025.