Media Contact
Adam Allington
The Trump administration is said to be in advanced talks over a $500 million rescue deal for Spirit Airlines that could leave the federal government owning a large share of the company after it emerges from bankruptcy.
Arthur Wheaton
Director of Labor Studies, ILR School
Art Wheaton is an expert on transportation industries and labor studies at Cornell University’s School of Industrial and Labor Relations. He says government bailouts like this are not as rare as people think.
Wheaton says:
“Spirit Airlines has been searching for help, or partners or takeover for several years. President Trump may not want to have Spirit Airlines liquidate and fire 14,000 employees because of high fuel prices. The optics are not ideal based on gas prices climbing much higher on the Iran conflict.
“The airline sector has also battled long lines due to partial government shutdown over funding TSA workers. These big economic impacts could be an issue in the midterm elections. Easier to lend a little government money in exchange for partial ownership than the liquidation of a long-time carrier.”
