Spirit Airlines reportedly set to cease operations after bailout talks fail
Spirit Airlines is preparing to cease operations after failing to secure a U.S. government bailout due to disagreements among bondholders and within the Trump administration. The airline's financial recovery plan was derailed by a sharp increase in jet fuel prices caused by the war in Iran, doubling its projected costs. Despite advanced talks and a proposed $500 million in financing, the rescue deal collapsed, marking the first airline casualty linked to the conflict.
- ▪Spirit Airlines is preparing to cease operations after bailout talks failed.
- ▪The Trump administration proposed $500 million in financing for 90% equity warrants in Spirit.
- ▪Jet fuel prices rose to $4.51 per gallon by April's end, double Spirit's projected $2.24 average.
- ▪A rescue hearing scheduled for April 30 did not take place due to ongoing negotiations.
- ▪Spirit's demise marks the first airline industry casualty linked to the war in Iran.
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Open this photo in gallery:A Spirit Airlines Airbus A320 lands at Hollywood Burbank Airport on April 17.PATRICK T. FALLON/AFP/Getty ImagesShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountBankrupt discount carrier Spirit Airlines SAVE-N is preparing to cease operations, after failing to align certain bondholders and the U.S. government on a bailout plan, the Wall Street Journal reported on Friday.U.S. President Donald Trump said last month his administration was looking to buy the embattled carrier at the “right price.”Sources later said the administration had proposed US$500-million in financing in exchange for warrants equivalent to 90 per cent of Spirit’s equity.There had been disagreements inside the Trump administration over whether and how to fund the…
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