President Trump confirmed the White House is considering a deal to bail out financially distressed Spirit Airlines.
“I guess we’re looking at it,” Mr. Trump told reporters Friday at the White House. “If we could do, we’d do it, but only if it’s a good deal.”
“No institution has been able to do it, but I said I’d like to save the jobs, but we’ll have an announcement sometime [Friday],” he said. “We gave them a final proposal.”
Spirit Airlines is preparing to shut down operations, after a last-ditch effort to secure a $500 million federal rescue package reportedly collapsed.
When asked what has been holding up the deal, Mr. Trump said, “We’re looking at trying to help them. It’s something we’re not looking to get involved with, but if we can, it’s 14,000 jobs.”
He added, “I would say we are driving a tough deal but it’s one of those things. We will do it or we won’t.”
The budget carrier, which reshaped American aviation over the last twenty years by selling inexpensive tickets and charging fees ranging from printed boarding passes to seat selection, has been strangled by high fuel costs, the COVID-19 pandemic, a failed merger and persistent engine defects.
The proposed bailout would have given the federal government a 90% stake in the Florida-based airline in exchange for the loan — terms that brought forth opposition from several major bondholders.
Transportation Secretary Sean Duffy expressed public skepticism about the rescue in recent weeks, questioning whether federal money could save the carrier long-term.
• This story is based in part on wire service reports.
