Spirit Airlines Seeking Bailout In Desperate Bid To Avoid Collapse
Jalopnik • • business
Key Points:
- Spirit Airlines, struggling financially with $2 billion in debt and a reduced fleet, is considering offering an equity stake to the federal government in exchange for a cash infusion to avoid liquidation.
- Executives from Spirit and other low-cost carriers plan to meet with Transportation Secretary Sean Duffy to discuss challenges posed by rising jet fuel prices.
- The Association of Value Airlines has proposed temporary relief measures to Congress, including suspending the 7.5% federal excise tax on airline tickets, to support struggling low-cost carriers.
- President Donald Trump expressed openness to government assistance or a potential buyer for Spirit Airlines to preserve jobs, while also blaming the Biden administration for judicial obstacles to JetBlue's acquisition of Spirit.
- Trump opposed a proposed merger between United Airlines and American Airlines, warning it could reduce competition and cause domestic ticket prices to increase significantly.
