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Trump Says He's Still Considering Deal for Spirit Airlines
Airline Reportedly Set to Shut Down
President Donald Trump said the federal government was still looking at a rescue plan for Spirit Airlines and would offer a final proposal.
“If we could do it, we’d do it, but only if it’s a good deal,” Trump told reporters May 1 at the White House, saying that an announcement could come later May 1 or May 2.
The president’s comments come with Spirit Aviation Holdings Inc. laying the groundwork to shutter its operations as it runs low on cash, according to people familiar with the matter.
Spirit, grappling with a recent surge in fuel costs, had been in talks with the U.S. government on a rescue financing, but those conversations hit an impasse.
“I’d like to save the jobs,” Trump said May 1.
The president had dangled the prospect of deal to help save the beleaguered airline, despite opposition from Republican lawmakers to taxpayers’ shouldering the risk of reviving a struggling carrier.
Talks had focused on a federal financing package of as much as $500 million in exchange for warrants to purchase up to about 90% of the company. But that effort faced resistance from creditors who would have been bumped lower in priority, meaning their chances of recovering on their holdings could be lower than if the airline simply liquidated.
The White House earlier this week has downplayed concerns about how long Spirit could continue operations, with National Economic Council Director Kevin Hassett saying creditors could cough up more cash if they want to extend talks.
The Commerce Department, led by Secretary Howard Lutnick, was negotiating on behalf of the administration. The department didn’t respond May 1 to requests for comment on the status of talks.
