The $12 million deal behind Atlanta's Spirit-to-Delta lease review

Two named gates, ticketing space and a $12 million agreement sit behind the Spirit-to-Delta airport lease assignment coming before Atlanta's Transportation Committee on Oct. 14 at 10 a.m.⁠[1][2]

The agreement filed in Spirit's bankruptcy case calls for Delta to pay Spirit a one-time $12 million assignment fee, inclusive of costs to cure lease defaults. The lease covers preferential-use gates C4 and C6 at Hartsfield-Jackson, along with ticketing-lobby and support space, and runs through June 30, 2031. The price is for the lease assignment—not just the two gates.⁠[1]

Spirit's June motion says the airline no longer needed the space because it was winding down operations. Assigning the lease, Spirit argued, would bring money into its bankruptcy estate and stop the associated costs.⁠[1]

Atlanta's pending action is narrower than negotiating that deal. Resolution 26-R-4262 would authorize the mayor or a designee to execute documents acknowledging the assignment for the remaining lease term. The committee listing is not completed municipal consent. Even if authorized, the documents would not bind Atlanta until mayoral execution, clerk attestation, legal approval and delivery to both airlines.⁠[2]

There is an important date distinction. The city's draft describes a court-approved assignment agreement effective June 9. But the agreement attached to Spirit's June 17 request for court approval calls June 9 its execution date and defines effectiveness through conditions that include an approving court order. The final order, actual effective date and payment are not established in the records reviewed here.⁠[1][2]