"The deal is expected to include the federal government taking a stake in the troubled airline, which had struggled to make money ever since the Covid pandemic."
"A shutdown would put thousands of Spirit employees out of work and leave millions of passengers with Spirit tickets scrambling to make other travel arrangements."
"While a potential deal could be good for passengers and Spirit employees, it will likely cause backlash from the rest of the airline industry."
"Past bailouts of US airlines have also been done on an industry-wide basis, not in support of a single, relatively small carrier."
Spirit Airlines is close to securing a $500 million bailout from the federal government, which would involve the government taking a stake in the airline. This deal aims to prevent Spirit from becoming the first major US airline to cease operations due to financial issues in 25 years. Rising jet fuel costs have hindered Spirit's recovery from its second bankruptcy since 2024. While the bailout could benefit employees and passengers, it may provoke backlash from other airlines facing similar challenges.
Read at ABC7 Los Angeles
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