Trump Administration Nearing a Deal to Rescue Spirit Airlines

Key Points

• The Trump administration is in advanced talks to provide a bailout for Spirit Airlines, which is facing liquidation during its second Chapter 11 bankruptcy.
• Negotiations include a potential federal loan of up to $500 million and the possibility of the government taking a significant stake in Spirit Airlines.
• The White House attributes Spirit’s financial issues to the Biden administration’s previous legal actions blocking a merger with JetBlue.

Summary

The Trump administration is close to finalizing a bailout deal for Spirit Airlines, which is at risk of liquidation during its second Chapter 11 bankruptcy. The proposed rescue package could include up to $500 million in federal loans and a potential government ownership stake in the airline. The White House has pointed blame at the Biden administration for blocking Spirit’s merger with JetBlue, which they argue contributed to the carrier’s financial woes.