Days after news broke that Spirit is seeking financial assistance from the federal government, possibly to the tune of hundreds of millions of dollars, President Donald Trump is weighing in.
Phoning in to CNBC’s “Squawk Box” on Tuesday, the president first fielded a question about a potential merger between United and American. Trump said he doesn’t support the idea but emphasized that he’s not opposed to all mergers and acquisitions in the industry.
“I’d love somebody to buy Spirit, as an example,” he said. “You know, Spirit’s in trouble, and I’d love somebody to buy Spirit. It’s 14,000 jobs, and maybe the federal government should help that one out.”
The president did not elaborate on that point and moved on to discuss consolidation in the defense sector.
The Air Current reported late Friday that Spirit, beset by soaring jet fuel prices, had approached the Trump administration with a request for emergency funding. Earlier reports suggested that the carrier could be on the brink of liquidation due to higher energy costs.
According to The Wall Street Journal, the administration is considering a government investment in the airline. Direct investment by the U.S. in a private-sector company is rare but not unheard of, and Trump has shown openness to the idea. Last year, the federal government acquired a roughly 10% stake in technology company Intel.
Spirit is currently navigating its second stint in bankruptcy protection. It had hoped to emerge from bankruptcy by the late spring or summer, but that timeline has almost certainly been pushed back.
Representatives from Spirit and other low-cost airlines are expected to meet with U.S. Transportation Secretary Sean Duffy this week to share how higher fuel prices are impacting their operations and financial viability.
