Spirit Airlines Headed for Liquidation? Unlikely.

Scott Kirby, CEO of United Airlines, commented on Spirit Airlines' plan of reorganization in the quote below. In short, Kirby appears to think that Spirit's plan is a road to nowhere, except Chapter 7 liquidation. While he isn't exactly an objective observer, he doesn't appear to be wrong either, as Spirit's demise will inure—at least partially—to United's benefit in the zero-sum game of commercial aviation. 

Spirit's plan appears to swap some debt for equity and put enough cash on the balance sheet to stay afloat for a few quarters, but the plan fails to address the underlying causes of the insolvency. Then what? Chapter 22?

While liquidation may be a possibility, I suspect that Spirit will be sold to a competitor shortly after its emergence from bankruptcy protection. Unfortunately, current shareholders will get nothing, and that windfall will go to the creditors sponsoring the plan of reorganization.