Business
Spirit Airlines files for Chapter 11 bankruptcy protection for the second time in a year
A Spirit Airlines Airbus A320 taxis at Los Angeles International Airport after arriving from Boston on September 1, 2024 in Los Angeles, California.
Kevin Carter | Getty Images News | Getty Images
Spirit Airlines on Friday filed for bankruptcy protection for the second time in a year, just months after the country’s largest budget carrier failed find to sturdy financial footing when it came out of Chapter 11 protection in March.
Spirit debtholders agreed in the airline’s previous bankruptcy to exchange $795 million in debt for equity, but the carrier avoided bigger changes to cut costs, like getting rid of planes or more dramatically shrinking its footprint.
Spirit now says it will reduce its network and shrink its fleet, cuts that it said will reduce costs by “hundreds of millions of dollars” a year.
“Since emerging from our previous restructuring, which was targeted exclusively on reducing Spirit’s funded debt and raising equity capital, it has become clear that there is much more work to be done and many more tools are available to best position Spirit for the future,” Spirit CEO Dave Davis said in a news release on Friday.
The carrier sought to reassure customers that they can continue to book and fly on Spirit after its bankruptcy filing.
“Virtually every major U.S. airline has used these tools to improve their businesses and position them for long-term success,” Spirit posted on its Instagram account on Friday, written in white against a black background, uncharacteristic for the carrier that is usually featuring its bright-yellow planes and tropical beaches.
Dashed hopes
Spirit, known for its bright yellow planes, had expected to come out stronger from its previous bankruptcy, which it entered in November and emerged from in March. But the airline was dragged down by continued high costs and weaker U.S. domestic travel demand.
In a court filing in December, Spirit had forecast a net profit of $252 million this year. But earlier this month, it said it instead lost nearly $257 million since March 13, after it exited Chapter 11, through the end of June.
Spirit warned a few weeks ago that it might not be able to survive a year unless it significantly increased its cash. It also said its credit card processor was seeking additional collateral. It then borrowed the entire $275 million available under its revolving credit facility and said that the card processor could hold back up to $3 million a day from the airline.
Spirit’s shares are down 72% over the past month.
Labor cuts
Labor unions warned pilots and flight attendants earlier this month that more changes could be ahead. Hundreds of flight attendants are already on voluntary leave, and Spirit has planned to furlough hundreds of pilots this year to cut costs.
“This bankruptcy will be harder and look different than last year, but we will keep you closely informed and stick together as we move forward,” the Association of Flight Attendants-CWA told the carrier’s flight attendants on Friday after Spirit’s filing.
It said it expects more leaves will be offered. “As we communicated a few weeks ago, we urge you to take an honest look at your personal situation, examine all your options, and prepare for all possible scenarios,” the union said.
Rivals circle
Spirit had struggled for years as it dealt with a glut of U.S. flights, a Pratt & Whitney engine recall and a failed takeover by JetBlue Airways, a deal that was blocked in court.
Spirit’s aircraft lessors had reached out to rival airlines in recent weeks to gauge executives’ interest in some of the carrier’s planes, according to people familiar with the matter, who spoke on the condition of anonymity because the talks were private.
The carrier is the United States’ largest budget airline, followed closely by rival Frontier Airlines, which has tried and failed to merge with Spirit repeatedly since 2022.
Frontier on Tuesday announced 20 new routes that compete with Spirit to win over its struggling competitor’s customers.
Spirit has been an icon of budget travel and its bare-bones service — and fees for bags and everything else — became a favorite punchline for comedians.
Over the years, larger airlines like American and United rolled out their own basic fares for price-sensitive customers, but with more perks on board like snacks and big global networks where loyalty members could use their miles for more destinations.
Another challenge was that many travelers, especially post-pandemic, have sought out pricier and more spacious seats on board, as well as more international travel. Spirit has tried to rebrand to bundle fares and provide more premium seating options, though competitors have still said they have an advantage in part because they have bigger networks and more brand loyalty.
FILE PHOTO: A general view of the field during the Yale Bulldogs vs Harvard Crimson football game at Harvard Stadium in Boston, Massachusetts.
Adam Glanzman | Getty Images
A new tradition for HBCU football could be starting at one of the nation’s oldest football stadiums on the campus of Harvard University.
“It’s really a cultural event,” said Derek Brown, co-founder of the Essence HBCU Classic, an NCAA football game between teams of historically Black colleges and universities. This year’s inaugural match-up is between with the Morehouse College Maroon Tigers and the Johnson C. Smith University Golden Bulls on Saturday during Labor Day Weekend.
“Football is definitely a part of the weekend. But I would say it’s the appetizer, and everything that comes with it is the entrée,” Brown said.
The four-day event co-founded by Campus Rise, which also created the HBCU NY Classic, will feature a pep rally, tailgate, battle of the bands and a step show with the goal of creating at atmosphere similar to an HBCU homecoming.
“We are trying to amplify HBCUs and the amazing folks that go to those schools,” said Michele Ghee, chief content officer of title sponsor Essence. “What an amazing opportunity to say, ‘Yes, HBCUs are producing great students just like Harvard.'”
The event’s organizers said they chose Boston because of the large number of HBCU alumni in the area and chose Harvard Stadium for its historical significance.
In 1971, Howard University and University of Maryland Eastern Shore played a game at the stadium organized by the Urban League of Eastern Massachusetts.
“Boston is actively working to shape a new narrative,” said John Borders IV, a Morehouse graduate and head of the Boston Office of Sports, Tourism and Entertainment, noting Mayor Michelle Wu is actively trying to distance the city from its history of racial tensions. “Boston has a rich Black history. While people may have one perception about Boston historically, there is a different dimension.”
The presidents of Morehouse and Johnson C. Smith say the game will likewise give both HBCUs an opportunity to inform people of their rich history and to build their national presence.
“It’s really an opportunity to have that broader exposure and to bring the product of Morehouse, the product of the pride of HBCUs on the road to showcase,” said F. Dubois Bowman, president of Morehouse.
“I think there are lots of questions we have to ask ourselves about representation, about the role that people of color, particularly Black people, play in this country,” said Valerie Kinloch, president of Johnson C. Smith. “When we talk about traversing different types of spaces, we have to understand how historically Black colleges and universities have a wide impact, and that also includes an impact on spaces that we usually would not be represented in.”
In addition to Essence, the game is being sponsored by betting giant DraftKings and Cash App, a subsidiary of Block.
“This partnership reflects who we are and what we stand for,” said Zack Ashley, global head of brand partnerships at Cash App, in a statement. “We’re honored to help bring the ESSENCE HBCU Classic to Boston and to celebrate the excellence, pride, and history of these institutions while providing real-world benefits to the communities they serve.”
Brown said the sponsorships are a clear acknowledgment of the value of HBCUs and their alumni during a time when many companies are ending their diversity, equity and inclusion programs.
“It’s a new tradition, but it’s not a new consumer,” Brown said. “I think all of our partners recognize that this a consumer that they wanted to target. They are not doing charity, they are sponsoring this event because it gives them great access to a consumer that is very important to their business.”
Carmaker Tesla has asked a federal court in Florida to throw out a verdict from a jury that found the company partly liable in a 2019 crash that killed a pedestrian and severely injured another.
Lawyers for the victims had argued that Tesla’s Autopilot driver assistance software contributed to the crash, failing to alert the driver of a Model S and activate the brakes.
Tesla blamed the driver for the crash, and on Friday asked the court to overturn the verdict, order a new trial, or reduce the punitive damages award.
The firm was ordered to pay $243m (£189m) in damages amid claims that boss Elon Musk misrepresented the software’s capabilities.
In a written argument to the court, Tesla said the $243m award flew in the face of “common sense.”
“Auto manufacturers do not insure the world against harms caused by reckless drivers,” the company said.
But Brett Schreiber, who is representing the victims, said the bid “is the latest example of Tesla and Musk’s complete disregard for the human cost of their defective technology”.
“The jury heard all the facts and came to the right conclusion that this was a case of shared responsibility, but that does not discount the integral role Autopilot and the company’s misrepresentations of its capabilities played in the crash,” he added.
Mr Schreiber said he was confident the court would uphold the original verdict.
At trial, the jury heard that driver George McGee had lost sight of the road when he dropped his phone as he was approaching an intersection, causing his car to continue through it and crash into an SUV parked on the other side.
Neither Mr McGee nor the Autopilot software hit the brakes in time to prevent the vehicle from hitting the two victims who were standing nearby.
Naibel Benavides Leon, 22, was killed when she was struck by McGee’s Model S and her boyfriend, Dillon Angulo, suffered life-long injuries.
Tesla accused the victims’ lawyers of overwhelming the jury “with a flood of highly prejudicial but irrelevant evidence” including statements from Mr Musk.
The lawyers also argued that the multi-million punitive damages award should be discarded or significantly reduced because such punishment requires clear evidence of “egregious wrongdoing” by the manufacturer.
The jury awarded the victims $329m in total damages, including $129m in compensatory damages and $200m in punitive damages which aims to deter Tesla from harmful behaviour in the future.
While other federal lawsuits have been brought against Tesla alleging its Autopilot played a role in fatal crashes, the Florida case which Tesla appealed on Friday was the first federal case of its kind to go to a jury.
Last year, Tesla settled a lawsuit over a 2018 crash that killed an Apple engineer after his Model X collided with a highway barrier while operating the company’s Autopilot software.
In 2023, a California state jury found Tesla was not at fault in a case in which it was alleged that Autopilot had led to a death.
At trial, Mr McGee said his concept of Tesla’s Autopilot was that it would assist him if he made a mistake – adding that he felt the software had failed him.
Mr McGee has settled a separate lawsuit with the victims for an undisclosed sum.
Business
Nita Ambani Unveils 2,000-Bed Medical City And Major Green Projects For Mumbai At RIL AGM 2025
New Delhi/Mumbai: Nita Ambani, Founder and Chairperson of Reliance Foundation, has announced an ambitious new healthcare initiative in the heart of Mumbai. The state-of-the-art, 2,000-bed medical city is designed to be much more than just a hospital.
Speaking at the 48th Annual General Meeting of Reliance Industries, Nita Ambani said, “In the heart of Mumbai, a 2,000-bed medical city is being set up — not just another hospital, but one with AI-powered diagnostics and cutting-edge medical technology.”
A state-of-the-art, 2,000-bed medical city is being set up in the heart of Mumbai, which will have AI-powered diagnosticss and cutting-edge medical technology, disclosed Nita Ambani, Founder and Chairperson of the Reliance Foundation. pic.twitter.com/JqYU85nwz6
— Zee News English (@ZeeNewsEnglish) August 29, 2025
Reliance foundation said, “For fellow Mumbaikars, Nita Ambani, Founder and chairperson of the Reliance Foundation shared some very interesting developments of taking people back to Nature. Mrs. Ambani said Reliance Foundation has taken up the responsibility of developing a promenade and coastal road garden — the green lung spread over 130 acres.”
Good news, Mumbaikars. Nita Ambani, Founder and chairperson of the Reliance Foundation, has announced that the foundation will develop a promenade and coastal road garden – a green lung spread over 130 acres. pic.twitter.com/rTLIzbIHpS
— Zee News English (@ZeeNewsEnglish) August 29, 2025
Nita Ambani started by reminding everyone of the Reliance Foundation’s core belief: Respect for Life. She shared that in the past ten years, the Sir HN Reliance Foundation Hospital in Mumbai has treated 3.3 million patients and is considered one of India’s top multi-specialty hospitals. Building on this success, she announced the launch of “Jeevan,” a new wing focused on chemotherapy and immunotherapy, with a special focus on advanced cancer treatment for children.
The new medical city will also include a cutting-edge medical college, designed to train the next generation of doctors who will serve India and beyond. Nita Ambani emphasised that the goal isn’t just to increase capacity, but to ensure world-class healthcare is affordable and accessible to every Indian.
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