Overview
- Reports say the White House is in advanced talks on up to $500 million in loans for Spirit to keep the carrier operating during bankruptcy.
- The draft terms include warrants that could give the U.S. government a significant ownership stake in the airline, an approach rare for a single firm.
- President Trump, in a CNBC interview on Tuesday, said the government should consider help to protect roughly 14,000 Spirit jobs.
- Leading Republicans such as Senators Ted Cruz and Tom Cotton criticized a potential bailout as a poor use of taxpayer money, while a flight attendants union expressed hope for emergency aid.
- Spiking jet-fuel prices linked to the Iran conflict deepened Spirit’s cash crunch, and analysts warn a subsidized Spirit could strain rivals like JetBlue and Frontier and lead to fewer flights and higher fares.