Spirit Airlines is preparing to shutter operations after a $500 million bailout deal with the Trump administration fell apart, according to a report Friday.
The embattled budget airline has been unable to secure enough funding from the government and certain bondholders to keep it in business, the Wall Street Journal reported, citing sources familiar with the matter.
Spirit had been in talks with the Trump administration about a deal that would hand the government a stake of up to 90% in exchange for a major cash boost – potentially allowing the White House to use part of the bankrupt carrier’s fleet for military missions, according to CBS News.
But the deal was reportedly facing an uphill battle, as some members of the Trump administration fought over how to fund the bailout – and whether they should back it all – and some Spirit bondholders opposed the help altogether.
[Notigroup Newsroom in collaboration with other media outlets, with information from the following sources]
