Spirit Airlines announced today that Ted Christie, President and Chief Executive Officer, is stepping down from the Company and from the Board of Directors effective immediately. Spirit’s Board of Directors is in the process of appointing a permanent replacement.
Spirit CEO Ted Christie Steps Down
In the interim, the airline is apparently being run by committee with Fred Cromer, Executive Vice President and Chief Financial Officer; John Bendoraitis, Executive Vice President and Chief Operating Officer; and Thomas Canfield, Senior Vice President and General Counsel leading the airline until a replacement is found.
Robert Milton, Chairman of Spirit Airlines, had this to say about Christie’s tenure and departure:
“On behalf of the Board and the Spirit team, I thank Ted for his tireless efforts over the course of his 13 years at the Company. He has seen a lot and done a lot during his tenure here, including navigating the Company through the COVID crisis and multiple strategic junctures, as well as most recently, a corporate restructuring. Ted has kept the company together through challenging times, and for this we wish him all the best going forward.”
In addirion to the departure of the CEO, Matt Klein, Executive Vice President and Chief Commercial Officer, is also stepping down. His replacement has been identified as Rana Ghosh, who previously served as Senior Vice President and Chief Transformation Officer.
Is a Merger With Frontier Imminent?
Based on the immediate nature of Christie’s resignation, I can’t help but wonder if major change is on the horizon, specifically a merger with Frontier Airlines.
It’s no secret that Spirit has been struggling mightily, with the ultra-low-cost carrier filing for Chapter 11 Bankruptcy late last year. This came after a lifeline, in the form of a merger with JetBlue, was squashed by the Department of Justice.
Since then, the carrier has rejected multiple merger offers with fellow ULCC Frontier Airlines and, emerged from Chapter 11 bankruptcy as a privately held company. When the airline emerged from bankruptcy, I didn’t see a path forward long-term and fully expected to see the carrier merge or sell some of its assets.
Now, with Christie out as CEO (he led the airline for the last six years), could investors finally be ready to cut a deal? If an announcement comes soon, it wouldn’t be a surprise as we saw regional carrier Republic Airways snap up struggling Mesa Air Group in an all-stock deal.
Summary
Spirit CEO Ted Christie has stepped down effective immediately. The airline is currently being run by committee as the Board of Directors searches for a replacement. With this type of leadership shakeup, I can’t help but wonder if the long proposed merger with fellow ULCC Frontier is just around the corner.
