White House Proposes Last-Minute Rescue for Spirit Airlines Amid Looming Shutdown

The Trump administration presented Spirit Airlines a final proposal to prevent its shutdown, with the budget airline approaching bankruptcy amidst stalled creditor negotiations. A $500 million bailout offer is contingent on significant equity. Rival airlines prepare for Spirit's cessation, potentially affecting 20,000 jobs. Disagreements persist within the administration over funding strategies.

The Trump administration submitted a final proposal to rescue Spirit Airlines from bankruptcy, officials stated on Friday. The White House remains poised to intervene should a viable deal be reached. With Spirit verging on closure, President Trump emphasized the need for favorable terms to save the budget carrier.

Spirit's potential shutdown loomed as early as Saturday morning, with creditors at an impasse over a $500 million bailout plan. Insiders revealed a board meeting convened late Friday to decide the airline's fate. If operations ceased, an orderly wind-down would begin overnight, affecting flights and repositioning aircraft.

Amidst these developments, the White House contacted other airlines to assist Spirit passengers, with United, American, Frontier, and JetBlue preparing contingency plans. Meanwhile, President Trump previously indicated potential investment interests, proposing a $500 million financing deal for majority equity control.