Ted Cruz slams Trump's proposed Spirit Airlines government bailout plan
Fox Business • • general
Key Points:
- Sen. Ted Cruz strongly opposed the Trump administration's proposed bailout plan for Spirit Airlines, criticizing government ownership of up to 90% of the airline and citing past bailout failures.
- Sen. Tom Cotton also expressed skepticism, arguing that taxpayer funds would be better used elsewhere since Spirit has struggled to operate profitably through multiple bankruptcies.
- President Trump suggested federal assistance for Spirit Airlines to preserve 14,000 jobs, distinguishing this from mergers involving larger carriers like United and American Airlines.
- Spirit Airlines filed for its second bankruptcy in August 2025 and plans to exit bankruptcy by early summer after restructuring agreements with lenders, focusing on cost-cutting and improving profitability.
- Transportation Secretary Sean Duffy acknowledged the bailout discussion and indicated he would investigate the matter further.
