Trump considers a taxpayer takeover of Spirit Airlines and would aim to resell carrier
Summary
President Donald Trump is considering a government-funded plan to take over Spirit Airlines, a low-cost carrier struggling financially. He aims to eventually sell the airline at a profit once oil prices fall, while also saving jobs and keeping the airline running.Key Facts
- Spirit Airlines is in advanced talks with the U.S. government for financing to help it exit bankruptcy.
- The airline has faced financial losses for years and filed for bankruptcy protection in November 2024 and August 2005.
- High jet fuel costs, partly due to conflict involving Iran, have hurt Spirit’s business.
- President Trump mentioned the possibility of a taxpayer-funded takeover to save jobs and resell Spirit when conditions improve.
- Transportation Secretary Sean Duffy is reviewing options but expressed doubts about government financing setting a broad precedent.
- The government aid discussed may involve about $500 million and a chance for the government to own a large part of the airline.
- The White House has tried to shift blame for Spirit’s troubles onto the Biden administration’s opposition to a merger between Spirit and JetBlue Airways.
- A federal judge previously blocked the Spirit-JetBlue merger over concerns it would increase airfare prices.
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