Spirit Airlines update on ALPA strike: Flights cancelled through Wednesday, 16-Jun-2010

Spirit is processing future flight credits for customers for the full amount of their unflown flight purchase, and is also giving them a $100 future flight credit.

Customers who made their reservation prior to May 11, 2010 and purchased travel insurance can call Travel Guard at +1 (866) 877-3191 to discuss coverage questions and to start an insurance claim. Policyholders may have valuable coverage for Trip Cancellation and Trip Interruption due to the pilots strike.

As reported in Spirit's June 13, 2010 press release

Following is further clarification to Spirit's fair and equitable offer that was turned down by the union.

ALPA turned down a compounded average 29 percent pay increase costing the company an additional $70 million over five years, net of productivity improvements agreed to by the pilots. This 29 percent pay increase when combined with annual step increases totals a 47 percent increase in annual compensation over five years, prior to any overtime pay, signing bonus and 401K matching contribution increases.

In addition to the double-digit percent in salary increase, the pilots would have retained a four-day off break between each and every trip, a feature not found in any other ALPA contract, and another major issue of the negotiations. Despite not being favored by Spirit, the four-day off issue was a continuous sticking point for ALPA.

Annual Salary Example:

In addition, under the offer each pilot would have received a $3,000 signing bonus. The pilots would also receive an eight percent 401K match in years one through three with an increase to nine percent in year four, while all other Spirit employees only receive a three percent match.

Spirit pilots at the negotiating table worked incredibly hard and Spirit stepped up with them to get a contract that works for all parties and ensures the long-term growth and stability of the company and its pilots. Spirit's offer to ALPA addressed all of the union's major requests.

"It is surprising to me that ALPA would turn down this generous offer that would have paid senior captains over $200,000 per year," says Spirit Airlines President and CEO Ben Baldanza. "I am concerned that our employees are being used in a broader political game that may not be in the interest of their careers or their families. This deal should be about Spirit and Spirit only, not about the pilots whose contracts are under negotiation at other ALPA carriers, but it would appear other forces have intervened."