What’s the Fate of a $2.5 Billion Bailout for Budget Airlines?
After it became clear that Spirit Airlines would face liquidation, the outcome of a broader bailout for budget carriers became uncertain.
Transportation Secretary Sean Duffy said Saturday he didn’t believe such a bailout was necessary right now.
“I would say that at this point I don’t think it’s necessary,” Duffy said, speaking at Newark airport. “They do have access to cash if they want to come to the U.S. government, we would be a lender of last resort. If they can find dollars in the private markets, I think that’s better for them.”
Budget airlines, represented by industry trade group the Association of Value Airlines, started pitching the Trump administration in April for a $2.5 billion bailout to offset rising fuel costs. The money would be used exclusively for fuel costs, and under the terms being discussed,
