White House close to deal of up to $500m to rescue ailing Spirit Airlines
Summary
The White House is finalizing a loan package of up to $500 million to support Spirit Airlines, which is facing financial troubles due to rising costs. The federal government may receive a stake in the airline in exchange for the aid, as Spirit has struggled with bankruptcy and a blocked merger with JetBlue.Key Facts
- The White House plans to provide up to $500 million in loans to Spirit Airlines.
- Rising fuel costs, linked to the conflict with Iran, have hurt Spirit’s finances.
- Spirit Airlines has filed for bankruptcy twice in the last two years.
- A $3.8 billion merger between Spirit and JetBlue was blocked by a judge in 2024 due to concerns about less competition.
- In exchange for the loan, the federal government may get warrants, which could lead to owning part of Spirit.
- President Donald Trump expressed support for federal help to save Spirit Airlines and preserve its 14,000 jobs.
- A White House spokesperson said the Biden administration hurt Spirit by blocking the JetBlue merger.
- Spirit Airlines has not yet responded to requests for comment.
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