(Bloomberg) — Spirit Airlines Inc. has filed bankruptcy in the wake of greater competition from rival carriers and financial troubles following its scuttled merger with JetBlue Airways Corp.
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The airline filed Chapter 11 in New York listing assets and liabilities of between $1 billion and $10 billion, according to a court document.
Spirit has struggled since a federal judge scuttled that $3.8 billion acquisition by JetBlue, ruling the combination would harm cost-conscious travelers by driving up the price of airline tickets across the industry. The federal government had challenged the tie-up on antitrust grounds.
The airline is also been under increased pressure from larger carriers that have offered travelers more affordable tickets. The company filed for bankruptcy after reaching an agreement on a broad debt restructuring with a majority of its loyalty and convertible bondholders.
–With assistance from Luca Casiraghi and Dayana Mustak.
(Corrects currency from pounds to dollars in second paragraph.)
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