Trump administration and Spirit Airlines in advanced discussions over bailout, sources say
CBS News • • business
Key Points:
- The Trump administration is in advanced talks with Spirit Airlines for a potential bailout package that could include a loan of up to $500 million in exchange for government ownership warrants, according to sources.
- Commerce Secretary Howard Lutnick is a key advocate for the government to take an ownership stake in Spirit, though the deal is not finalized and remains subject to change.
- Spirit Airlines, based in Fort Lauderdale with about 15,000 employees, is operating normally but faces financial challenges; the government has historically intervened in the airline industry but rarely to support a single carrier.
- Ultra low cost carriers like Spirit help keep airfares low, and their exit from markets typically leads to significant fare increases, as seen in recent route departures by Spirit and Frontier Airlines.
- The Department of Transportation is evaluating whether a bailout would make Spirit viable or simply delay inevitable liquidation, with a decision expected soon as the situation is time-sensitive.
