Government BAILOUT Spirit
04-27-2026 | 05:34 PM
#191
Line Holder
Joined: Sep 2021
Posts: 297
Likes: 31
The free market is deciding. So the model doesn’t work. Should the govt just keep sending money to Spirit in the name of lower fare importance. The very business that got them where they are today. Can’t have that both ways. I truly feel bad for the employees. Also to think a near bankrupt JB would be better off with an already bankrupt Spirit and an additional $2B in debt is ludicrous. Someone Arguing that UAL would buy both with a combined $8B+ in debt or Alaska who is losing $500,000 per day now with the Hawaiian merger. Come on man!!
04-27-2026 | 05:40 PM
#192
Gets Weekends Off
Joined: Dec 2005
Posts: 9,490
Likes: 502
The free market didn’t decide…the government literally decided two years ago that Spirit was too important for competition and the low cost consumer to go away. That was literally the judge’s decision. You can argue with the government. Not sure in what world you feel like that is free market…it’s not this world.
A tax-payer funded bailout is a dangerous precedent. Then any LCC carrier with bad management will claim victim status and ask for a bailout.
04-27-2026 | 05:58 PM
#193
That/It/Thang
Joined: Aug 2020
Posts: 3,502
Likes: 367
You can only blame the govt for so much. Ultimately, Spirit lost money since 2020 with no end in sight. Millions and millions in management bonuses and nothing to show for it. They even said a standalone Spirit is viable.
A tax-payer funded bailout is a dangerous precedent. Then any LCC carrier with bad management will claim victim status and ask for a bailout.
A tax-payer funded bailout is a dangerous precedent. Then any LCC carrier with bad management will claim victim status and ask for a bailout.
On top of that, Reuters had an article today that propping up Spirit will in turn hurt JetBlue's return to profitability....so I guess another bailout for JetBlue to make up for that.
https://www.reuters.com/business/big...ource=facebook
04-27-2026 | 06:02 PM
#194
Line Holder
Joined: Sep 2021
Posts: 297
Likes: 31
You can only blame the govt for so much. Ultimately, Spirit lost money since 2020 with no end in sight. Millions and millions in management bonuses and nothing to show for it. They even said a standalone Spirit is viable.
A tax-payer funded bailout is a dangerous precedent. Then any LCC carrier with bad management will claim victim status and ask for a bailout.
A tax-payer funded bailout is a dangerous precedent. Then any LCC carrier with bad management will claim victim status and ask for a bailout.
04-27-2026 | 06:22 PM
#195
Line Holder
Joined: Sep 2020
Posts: 1,591
Likes: 373
And Frontier and Avelo are asking for a similar deal worth $2.5B in exchange of ownership warrants. Pandoras box. In the end I dont think any of this happens because with more airlines asking, it becomes even murkier.
On top of that, Reuters had an article today that propping up Spirit will in turn hurt JetBlue's return to profitability....so I guess another bailout for JetBlue to make up for that.
https://www.reuters.com/business/big...ource=facebook
On top of that, Reuters had an article today that propping up Spirit will in turn hurt JetBlue's return to profitability....so I guess another bailout for JetBlue to make up for that.
https://www.reuters.com/business/big...ource=facebook
04-27-2026 | 06:25 PM
#196
On Reserve
Joined: Oct 2024
Posts: 180
Likes: 109
I think they will let the market play out. Congress works like old people screwing, slow and sloppy.
04-27-2026 | 06:34 PM
#197
Gets Weekends Off
Joined: Dec 2005
Posts: 9,490
Likes: 502
And if the government blocks a buyout that may have saved them claiming that said airline is too important to get swallowed up, that airline would have a legitimate claim. The government blocking the transaction then watching that company fail is a dangerous precedent. Had the government not intervened, and then the company failed, they wouldn’t have a case…but that’s not what happened. You want to pretend that the government had nothing to do with this. They did. Keep pretending…nobody with more than a few brain cells or any memory whatsoever is fooled.
It is what it is. A merger blockage was early 2024. It’s been 2 yrs and what has been a profitable time for most airlines was still a loss for Spirit. The govt can only be blamed for so much. No one owes anyone a merger. Spirit management refused to change and adapt the carrier to the changing reality of the consumer. The real reason Spirit is in deep trouble is 6 yrs of continued losses with no major change in business plan viability.
04-27-2026 | 06:43 PM
#198
In a land of unicorns
Joined: Apr 2014
Posts: 7,072
Likes: 102
From: Whale FO
Using the DPA for Spirit was never a workable plan. That's as far of a legal stretch as his birthright citizenship "case".
Hope Trump et al. can come up with something that's actually possible instead of pushing forward with a plan that won't survive any legal scrutiny.
Spirit going out of business is not good for anyone.
04-27-2026 | 07:12 PM
#199
On Reserve
Joined: Dec 2025
Posts: 103
Likes: 100
From: A320 CA
Duffy was talking about the $2.5 billion, not the $500 million loan/equity for spirit.
04-27-2026 | 07:15 PM
#200
On Reserve
Joined: Dec 2025
Posts: 103
Likes: 100
From: A320 CA
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