Trump raises prospect of federal support for merger as Spirit Airlines struggles with costs and debt
Article excerpt
Highlighted: the sentence this signal was extracted from
President Donald Trump on Tuesday suggested that the federal government could help keep a struggling Spirit Airlines afloat, while also encouraging a buyer to step in and rescue the budget carrier. "Spirit's in trouble and I'd love somebody to buy Spirit. It's 14,000 jobs," Trump said in a CNBC interview. "And maybe the federal government should help that one out." The ultra low-cost carrier filed for bankruptcy protection in August for the second time in less than a year and was aiming to exit in late spring or early summer after striking a preliminary deal with lenders. That plan was quickly disrupted when U.S. and Israeli strikes on Iran sent oil prices soaring above $100 a barrel, with jet fuel costs doubling in some markets as the fighting in the Middle East continues to disrupt global oil supplies. SEE ALSO: Spirit Airlines files for bankruptcy again but vows to keep flying Spirit's relatively young fleet has made it an attractive acquisition target. But previous buyout attempts from budget rivals like JetBlue and Frontier were unsuccessful both before and during Spirit's first bankruptcy. Trump did not offer details on what type of government aid could be provided. But asked separately on Tuesday about potential government relief, Transportation Secretary Sean Duffy told reporters that the president had directed the department to review possible options. "He's...
Keep reading with a free account
The rest of this article, and every signal for Spirit Airlines, is in your free account.
