US government could take 90% stake in Spirit Airlines under $500M rescue
Spirit Airlines is working on a rescue strategy that may lead to the U.S. government acquiring a 90% stake in the airline. This $500 million arrangement is aimed at helping Spirit emerge from its second bankruptcy as a more streamlined and focused carrier. The airline intends to reduce its fleet size by approximately two-thirds. This proposal highlights the financial difficulties faced by the airline and indicates the likelihood of considerable government involvement in the aviation industry.
Key facts
- The U.S. government could own 90% of Spirit Airlines under a $500 million rescue plan.
- Spirit is trying to exit its second bankruptcy.
- The airline plans to cut its fleet by roughly two-thirds.
- The rescue plan is valued at $500 million.
Entities
Institutions
- Spirit Airlines
- U.S. government
Sources
- Quartz —