Spirit Airlines is preparing to shutter operations after a $500 million lifeline from the federal government fell through, sources familiar with the plans told The Wall Street Journal and The New York Times.
The budget airline had been hopeful the federal government might provide a last-minute rescue deal after President Donald Trump suggested a taxpayer takeover of the company last week.
“I think I’d love somebody to buy Spirit, as an example. You know, Spirit’s in trouble,” the president said in an interview with CNBC’s “Squawk Box.” “Maybe the federal government should help that one out.”
However, disagreements within the Trump administration and uncertainty from some of the airline’s bondholders have prevented the deal from going through, the Journal reported.
Several Republicans spoke out against the suggestion that the federal government could take over the budget airline.
