Earlier this week, Trump said he would “love somebody to buy Spirit” and floated the idea that “maybe the federal government should help that one out.”
TIME has reached out to the White House for comment.
The company has experienced additional strain in recent weeks as it, along with other airlines, has had to navigate the steep rise in jet fuel prices amid the energy crisis spurred on by Tehran’s chokehold over the Strait of Hormuz since the start of the Iran war on Feb. 28.
As such, many airlines have been forced to raise ticket prices and cut low-profit routes.
“The [Spirit] airline is bankrupt because the previous Administration blocked the merger, which was probably not a wise move,” said press secretary Karoline Leavitt on Wednesday, referring to JetBlue’s terminated attempt at a $3.8 billion acquisition of Spirit in 2024.
But Trump’s floating of a federal government bailout being a potential solution for the private-sector company has raised grave concern among lawmakers, sparking debate about government involvement in business.
Placing the blame firmly on Trump’s war with Iran, Democratic Sen. Elizabeth Warren of Massachusetts argued: “Donald Trump’s war with Iran caused the sky-high fuel prices that finally did Spirit Airlines in.”
Her gripes have been echoed by prominent voices on the right.
“The Trump Admin is going to bail out Spirit Airlines with $500 million of your tax dollars but refuse to do anything to lower the cost of health insurance. Or cost of living. Or gas and diesel,” claimed Greene, who also blamed the Iran war for rising costs.
Sen. Cotton, who sits on the Senate Joint Economic Committee, cast doubt on the federal government’s ability to run Spirit Airlines, should the bailout come to fruition.
Sen. Ted Cruz of Texas
Sen. Cruz condemned the potential bailout as an “absolutely terrible idea,” pointing to “the TARP corporate bailouts” as a “huge mistake.”
In 2023, the Treasury said that a total of $443.5bn was spent through TARP, and when accounting returns and interest, cost a total of $31.1bn.
Sen. Lee supported Cruz’s argument, stating that “competition among airlines suffers when government bails them out.”
"A merger between United Airlines and American Airlines would create the largest airline in the world, in an industry already plagued by a lack of competition," said Lee and Warren in a public letter.
“First, a United-American merger could lead to increased prices for consumers, at a time when airlines are already squeezing flyers through higher fares and fees,” they argued
“I don't mind mergers," he said."But with American it's doing fine, and United is doing very well. I know the United people, they're doing very well. I don't like having them merge.”
Sen. Ted Budd of North Carolina
“Taxpayers pay billions to subsidize Amtrak, even as they boast growing demand and riders,” he said. “Just as Biden’s DOJ shouldn’t have prevented Spirit Airlines from merging with viable partners, Americans shouldn’t be on the hook for another failing business as its competition thrives.”
Transport Secretary Sean Duffy
“There's been a lot of money thrown at Spirit, and they haven't found their way into profitability, Duffy told Reuters. “And so would we just forestall the inevitable and then own that?”
He queried: "If no one else wants to buy them, why would we buy them?"
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