Taxpayers are about to foot the bill for another massive corporate bailout. This time taxpayers will suffer for Spirit Airlines. Doesn't matter what admin is in power, the bailouts continue.
The Trump administration is preparing to rescue ailing budget carrier Spirit Airlines.
www.cnbc.com
Trump administration in advanced talks for Spirit Airlines rescue package, source says
- The Trump administration is in advanced talks for a financing package for Spirit Airlines, according to a person familiar with the matter.
- Spirit had been facing a potentially imminent liquidation, people familiar with the matter told CNBC last week.
A Spirit commercial airliner prepares to land at San Diego International Airport in San Diego, California, U.S., January 18, 2024.
Mike Blake | Reuters
The Trump administration is in advanced talks for a financing package for Spirit Airlines as the carrier is facing the risk of a
liquidation, according to a person familiar with the matter.
The iconic discounter Spirit has been challenged for years by rising costs, changing consumer tastes, an engine recall and a court-blocked plan to be acquired by
JetBlue Airways two years ago.
“Spirit Airlines would be on a much firmer financial footing had the Biden administration not recklessly blocked the airline’s merger with JetBlue,” White House spokesman Kush Desai said in a statement to CNBC. “The Trump administration continues to monitor the situation and overall health of the U.S. aviation industry that millions of Americans rely on every day for essential travel and their livelihoods.”
Spirit had been facing a potentially imminent liquidation, people familiar with the matter told CNBC last week, speaking on the condition of anonymity to discuss matters that had not yet been made public. The Dania Beach, Florida-based carrier in August filed for its second Chapter 11
bankruptcy in less than a year, after it struggled to increase revenue to cover rising costs.
President
Donald Trump hinted at potential
government aid on Tuesday, telling CNBC’s “
Squawk Box”, “Spirit’s in trouble, and I’d love somebody to buy Spirit. It’s 14,000 jobs, and maybe the federal government should help that one out.”
The terms of the talks weren’t immediately clear and a deal could still fall apart. The
Wall Street Journal earlier reported that the talks were in an advanced stage.
“We are hopeful that the government will recognize the needs for emergency funds especially in the current economic environment,” a spokesperson for the Associated of Flight Attendants-CWA, which represents Spirit’s cabin crews, said in a statement. “The last thing our economy needs is tens of thousands more people out of work and the last thing the travelling public needs is fewer choices in air travel.”
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