Magnicharters, a low-cost Mexican carrier, has filed for bankruptcy protection in Mexico City, following Spirit Airlines' shutdown, as rising jet-fuel costs hit airlines worldwide.
Bankruptcy Filing
Yet another budget airline has reportedly gone bust, following in the wake of the struggling Spirit Airlines, which ceased all operations earlier this month. Magnicharters, a low-cost Mexican carrier, filed for bankruptcy protection earlier this week in the First District Court in Mexico City, according to reports. The move came after the airline grounded all flights last month, despite initially claiming the suspension would last just a fortnight.
Only a few days ago, UK chartered airline Zenith Aviation Limited - a leading private jet provider - has ceased operating. The Magnicharters carrier originally cited "operational problems" as the reason for the cancellations, but subsequently had its Air Operator Certificate temporarily revoked after failing to meet key costs, including technical support, maintenance, spare parts and staff training.
Passenger Impact
As of Friday, Magnicharters had yet to issue any public statement, though its website showed no available flights and was directing customers to a helpline for any enquiries, according to the Independent. Earlier this month, Spirit Airlines scrapped all remaining flights after failing to emerge from bankruptcy. Spirit, once valued at as much as $5.5 billion on the stock market and renowned for its distinctive bright yellow aircraft, ceased all operations on 2 May, with its last flight departing from Detroit to Dallas.
"For more than 30 years, Spirit Airlines has played a pioneering role in making travel more accessible and bringing people together while driving affordability across the industry," CEO Dave Davis said in a statement. The news came following two bankruptcy filings in as many years, which enabled Spirit to settle its debts with lenders. This was followed by a frantic, last-ditch effort to cut costs by slashing routes, wringing concessions from unions and pursuing a potential financing arrangement with the Trump administration that could have thrown the airline a lifeline had it come to fruition. "This is tremendously disappointing and not the outcome any of us wanted," Davis said.
Apology to Passengers
Days after Spirit Airlines shut down in the middle of the night, a lawyer for the defunct budget carrier stood before a bankruptcy judge and apologized to the price-conscious customers who might struggle to find affordable flights in its absence. "We apologize most specifically to those Americans who may now be priced entirely out," Spirit lawyer Marshall Huebner said in court, thanking all the passengers who relied on the airline during its 34-year run, many of whom, he said, "could not otherwise have afforded air travel."
