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The Independent UK
The Independent UK
Michelle L. Price

Trump eyes up taxpayer-funded takeover of Spirit Airlines after bankruptcy

  • Trump's administration is considering a taxpayer-funded takeover of Spirit Airlines, which is currently in its second bankruptcy proceeding in under two years.
  • The president indicated that a decision on the potential bailout, which he stated would only proceed if it represented a "good deal" for the government, could be announced shortly.
  • The proposed rescue plan has drawn criticism from both political parties and some members of the administration, despite Trump's emphasis on preserving jobs.
  • Supporters, including labour unions, argue that a failure to rescue Spirit Airlines would lead to job losses, reduced competition, and higher airfares.
  • Spirit Airlines has faced significant financial difficulties since the COVID-19 pandemic, exacerbated by rising operating costs, mounting debt, reduced capacity, and increased jet fuel prices due to the Iran war.

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