A U.S. bankruptcy court delayed a hearing on Alphabet’s proposed $10 million purchase of Spirit Airlines’ internal data after the Association of Flight Attendants-CWA filed objections over employee privacy risks.
The court postponed the hearing, originally set for Wednesday, to September 9, according to a filing on Tuesday. The dispute centers on Spirit’s employee communications, spreadsheets, and operational records included in the sale, which Google plans to use for AI model training and product development.
Spirit Airlines has stated that the transferred data will be de-identified, excluding customer information and personally identifiable details. However, the union argues that the deal’s requirement to preserve dataset linkages could enable reconstruction of individual or small-group information, despite Spirit’s assurances.
The transaction is part of Spirit’s asset liquidation process following its May shutdown, driven by unsustainable debt levels and elevated fuel costs. The airline filed for bankruptcy in June 2024 and has since been selling off non-core assets to satisfy creditors.
The court’s decision to delay the hearing reflects the need to address the union’s concerns before proceeding with the data transfer, which remains subject to judicial approval.
