DIANA BEACH- Spirit Airlines (NK) has received approximately $150 million in compensation from engine manufacturer Pratt & Whitney (P&W) for its grounded Airbus aircraft.
The airline anticipates continued payments as geared turbofan (GTF) engine removals are expected to persist through at least 2026.
Photo: By Tomás Del Coro from Las Vegas, Nevada, USA – N619NK Spirit Airlines Airbus A320-232 s/n 5517, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=77926311Spirit Airlines Engine Compensation
The Miramar, Florida-based carrier is currently negotiating arrangements with Pratt & Whitney for aircraft remaining unavailable for operational service beyond the end of 2024. Spirit expects to continue receiving compensation for the loss of engine utilization, FlightGlobal reported.
Compensation details were revealed in a recent 10K filing with the US Securities and Exchange Commission. The payment from P&W affiliate International Aero Engines provided monthly credits from October 2023 through December 31st.
The compensation amount correlates directly with the number of days Spirit’s Airbus A320neo-family jets have been out of service for engine inspections and repairs.
The current compensation falls on the lower end of the $150-$200 million package Spirit projected in March 2024. The widespread engine issue originated from a potential defect in powdered metal used to manufacture specific engine parts, triggering a comprehensive recall.
Hundreds of aircraft across multiple models have been affected by the grounding, including Airbus A320neo, A321neo, A220 models, and Embraer E190-E2-family aircraft. These jets have been periodically removed from service since Pratt & Whitney’s disclosure in July 2023.
Photo: Spirit AirlinesGrounding Challenges
Data analytics firm Cirium reported approximately one-third of the worldwide GTF-powered aircraft fleet as “in storage” last month, indicating grounding periods exceeding 30 days. Most of these aircraft remain grounded due to required engine repairs.
Engine inspection processes have created significant industry disruptions, characterized by extended turnaround times in engine maintenance facilities. JetBlue Airways (B6) recently disclosed that individual engines typically spend approximately one year off-wing before returning to operational service.
Spirit Airlines has experienced particularly acute challenges amid these widespread engine issues. The carrier, currently navigating Chapter 11 restructuring, has been compelled to reduce, suspend, or discontinue services in multiple cities, including Denver, directly attributable to GTF engine complications.
Cirium’s data reveals that 30 of Spirit’s A320neo and A321neo aircraft currently remain in storage. These prolonged groundings represent substantial operational constraints for the airline, potentially impacting its financial recovery and service reliability during a critical restructuring period.
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