Spirit Airlines wins approval for a $475 million lifeline in bankruptcy court

Spirit Airlines won court approval Friday for a $475 million lifeline and a $150 million payment from the country's largest aircraft lessor, as the troubled budget carrier tries to stabilize after its second bankruptcy since November.

The U.S. Bankruptcy Court for the Southern District of New York approved the $475 million in debtor-in-possession financing, a lifeline that bankrupt companies can use to stay in business, along with $150 million from AerCap and the rejection of 27 aircraft leases. Spirit said Friday that $200 million would be immediately available to the carrier.

Spirit has cut dozens of routes, announced plans to trim its fleet and said last month it would lay off about a third of its flight attendants to cut costs. The airline is in talks with its pilots' union and is demanding cuts of about $100 million from that group.

“We are pleased to have reached another important milestone in our restructuring, which represents continued progress toward securing a successful future for Spirit,” Spirit CEO Dave Davis said in a news release Friday.

Spirit's problems have piled up in recent years: an engine recall, a failed takeover JetBluean increase in labor and other costs, and a shift in consumer tastes toward more expensive offerings.

Spirit has spent more than a year trying to offer travelers roomier seats and different fare packages than the cheap tickets and a la carte add-ons like seat selection and carry-on luggage that it has been known for for years.