President Donald Trump floated the idea of the White House purchasing struggling flight operator Spirit Aviation Holdings Inc. (OTC:FLYYQ) on Thursday, suggesting that it can be sold for a profit later.
‘I Think We Just Buy It,’ Says Trump
During a press briefing, Trump was asked about a possible bailout for Spirit. “I think we just buy it,” Trump said, sharing that the administration wanted to help the 18,000 employees who worked at Spirit and “save” those jobs. “We’d be getting it virtually debt-free,” he added. Trump also hailed the airline’s aircraft fleet and other assets. “When the price of oil goes down, we’ll sell it for a profit,” he said.
He also shared that he loved “competition” in the sector and wanted multiple airlines. “We are looking at Spirit,” Trump said, adding that the operator was in bankruptcy court. “If we could get it for the right price, I’d do it to save the jobs,” he said. Trump also outlined that he had a “smart person” who could run the airline, but did not elaborate on who it could be.
Spirit Airlines CEO Dave Davis issued a statement following Trump’s comments, saying that the airline was “grateful” for Trump’s support, adding that the airline would continue to work with the administration toward a solution that “protects thousands of jobs, preserves and enhances competition and helps ensure Americans continue to have access to affordable fares.”
$500 Million Package
The Trump administration was reportedly in talks to finalize a $500 million funding package for the airline as White House spokesperson Kush Desai shared that the government was monitoring Spirit’s situation, as well as the broader health of the aviation sector, which employs millions of Americans, as well as fulfills travel demand.
Trump had earlier shared that he would “love” for someone to buy Spirit, sharing that “maybe the federal government should help that one out.” However, Transportation Secretary Sean Duffy expressed skepticism about any federal bailout for the airline.
Meanwhile, Sen. Elizabeth Warren (D-Mass) criticized Trump’s war in Iran as one of the reasons behind Spirit’s situation. “What do the American people get out of this taxpayer bailout?” she asked, outlining the $500 million bailout package for the airline.
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