Spirit Airlines (NK, Fort Lauderdale International) and investment firm Castlelake are in talks for a potential takeover after negotiations between the carrier, currently under Chapter 11, and Frontier Airlines fell apart, the CNBC business news channel reported.

The media outlet said that both parties are currently in negotiations, but it is not certain they will secure a deal. Castlelake has been active in aviation finance for years. In August 2025, it announced the launch of Merit Air Finance, an aviation lending arm, with a budget of USD1.8 billion.

Spirit Airlines is currently in its second back-to-back Chapter 11 restructuring process. Reportedly, it was close to ceasing operations in mid-December before securing USD50 million in funding. In early January, Spirit’s pilots’ union urged the airline’s bondholders to honour their funding commitments and not to force a liquidation of the company.

ch-aviation reached out to Spirit and Frontier for comment. The former was not immediately available, while Frontier declined to comment.