Spirit Inks Deal with Pratt & Whitney Units Over Plane Engines

Spirit Aviation Holdings Inc. reached a settlement with two Pratt & Whitney affiliates for up to $140 million over engine issues that grounded planes.

The settlement among Spirit, International Aero Engines LLC, and IAE International Aero Engines AG stems from an agreement before the Chapter 11 filing, which provided monthly credits to the airline through 2025 related to grounded aircraft, according to a Wednesday filing in the US Bankruptcy Court for the Southern District of New York.

Court approval would provide the airline with “a sustainable, long-term agreement to service the aircraft engines required to operate their post-reorganization optimized fleet,” ...