Spirit Air Awards Executive Bonuses Upon Second Bankruptcy

Spirit Airline executives who oversaw the company’s first attempt to restructure in bankruptcy and its subsequent descent into another Chapter 11 will receive millions in bonuses for staying at the cash-strapped airline as it tries again to turn around, according to a company filing.

Spirit also said in the filing it had received a written notice of default Aug. 25 from aircraft lessor AerCap Holdings, which said it was terminating dozens of leases on aircraft that were scheduled for delivery to Spirit in coming years. Termination would cost Spirit more than $2 million per lease and apply to dozens of aircraft, the filing said. Spirit disputed the notion of a default, and said the termination of leases was invalid.