BANKRUPTCY Archives

So long, Spirit Airlines. Should the government have saved you?

May 2, 2026May 2, 2026 by Christopher Elliott

Spirit Airlines has begun an orderly wind-down of operations, effective immediately. Every flight has been canceled and customer service is closed. The shutdown comes after the Trump administration’s $500 million rescue plan, which would have given the federal government an unprecedented 90 percent stake in the carrier, fell apart over the weekend. After blocking Spirit’s merger with JetBlue on antitrust grounds in 2024, the federal government spent the past several days weighing whether to essentially own the airline instead. In the end, it did neither, leaving summer ticket holders to fight their credit card companies for refunds.

Editorial cartoon showing a smiling passenger with glasses holding a rolling suitcase at an airline check-in counter, where the agent's computer screen displays the word "FREE," illustrating the proposal to make checked bags free as a condition of any Spirit Airlines government bailout

If Spirit Airlines gets a government bailout, bags should fly free

May 2, 2026April 26, 2026 by Christopher Elliott

Spirit Airlines has reportedly asked the Trump Administration for $360 million in emergency funding as jet fuel prices doubled following the Iran conflict. After 9/11, Congress provided $5 billion in grants and $10 billion in loan guarantees to airlines. The COVID-19 Payroll Support Program delivered over $50 billion with conditions including killed change fees, capped executive pay, and restricted buybacks. Any new bailout should require Spirit to include one free checked bag in every fare for a minimum of five years, making taxpayer support deliver tangible passenger benefits.

Carolyn Hoke's anticipation for a serene seven-night river cruise from St. Louis to Minneapolis with American Queen Voyages turned into a prolonged ordeal of frustration and uncertainty. After the unexpected cancellation of her cruise in November 2022, Carolyn found herself ensnared in a seemingly endless wait for a refund of $10,126. Despite her persistent efforts, including calls to the company, escalations to the accounting department, and complaints to the Florida Division of Consumer Service, the refund remained elusive. As she navigated the maze of customer service apologies and bureaucratic dead ends, the ominous shadow of the company's potential bankruptcy loomed large, threatening to engulf her hopes of reclaiming her hard-earned money. This tale of perseverance against the tides of corporate negligence unfolds as Carolyn, with the help of consumer advocacy, confronts the daunting challenge of securing her refund from the brink of a collapsing cruise line.

Help! American Queen Voyages canceled my cruise but kept my $10,126

March 21, 2024March 1, 2024 by Christopher Elliott

Carolyn Hoke has been waiting more than a year for her refund from American Queen Voyages for a canceled cruise. Why is it taking so long — and how can she speed up the process?

Duncan Fox saw a glimmer of hope when Mexicana Airlines recently announced it would return to the skies back in 2010.

When dead airlines rise, where’s my refund?

January 22, 2024May 30, 2012 by Christopher Elliott

Duncan Fox saw a glimmer of hope when Mexicana Airlines recently announced it would return to the skies. Back in 2010, he’d booked a flight from San Francisco to Puerto Vallarta, but shortly before his trip, Mexicana filed for bankruptcy protection and then folded.

Noah Markewich's Alitalia lost-luggage case had "lost cause" written all over it when he contacted me last week.

Three years later, Alitalia still owes me $528 for my lost baggage and ruined Italian vacation

January 19, 2024November 2, 2010 by Christopher Elliott

Noah Markewich’s lost-luggage case had “lost cause” written all over it when he contacted me last week.

Don't Miss a Story!