By David Shepardson<\/p>\n
April 24 (Reuters) – A union representing workers at Spirit Airlines said on Friday any U.S. bailout of the bankrupt low-cost carrier \u200cmust protect employees.<\/p>\n
The Trump administration has made a financing offer to help \u200cthe airline exit bankruptcy that was being reviewed by its major creditors, Marshall Huebner, an outside \u200blawyer for Spirit, said on Thursday.<\/p>\n
The International Association of Machinists and Aerospace Workers, which represents Spirit’s ramp service employees, said any bailout must require “no furloughs, no layoffs, and no shifting the burden onto the very people who keep this airline running.”<\/p>\n
Spirit’s problems \u200cpredate the Iran war, but \u2060spiking fuel prices since it began in late February have made its situation worse.<\/p>\n
The liquidation of Spirit would eliminate more than \u206017,000 jobs and generate billions of dollars in claims, Huebner said.<\/p>\n
The union cited a pandemic-era government rescue program for airlines that included limits on executive compensation and restrictions \u200bon stock \u200bbuybacks and dividends.<\/p>\n
A lawyer for some Spirit \u200bcreditors said in court on \u200cThursday they had reviewed a term sheet of the government’s offer that sources say includes $500 million in financing and a condition the government receive warrants equal to 90% of Spirit’s equity.<\/p>\n
The senior debtor-in-possession financing would help Spirit exit its second bankruptcy restructuring since 2025.<\/p>\n
President Donald Trump said on Thursday his administration was looking at buying \u200cthe embattled airline at the “right price.” “When the price \u200bof oil goes down, we would sell it \u200bfor a profit,” he told \u200breporters at the White House.<\/p>\n
The Florida-based budget carrier is running \u200cshort on time. Huebner has said Spirit \u200bneeds new financing \u200bor access to $240 million of its funds by the end of next week.<\/p>\n
While a deal would keep Spirit afloat at a time when higher fuel \u200bprices eat into carriers\u2019 \u200cprofits, the prospect of a U.S. government-funded bailout has led to pushback \u200bfrom within the airline industry and among members of Trump\u2019s Republican \u200bParty.<\/p>\n
(Reporting by David ShepardsonEditing by Rod Nickel)<\/p>\n","protected":false},"excerpt":{"rendered":"By David Shepardson April 24 (Reuters) – A union representing workers at Spirit Airlines said on Friday any…\n","protected":false},"author":2,"featured_media":408743,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[68630,114,85,46,193194,193193],"class_list":["post-408742","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-bailout","tag-business","tag-il","tag-israel","tag-marshall-huebner","tag-spirit-airlines"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/408742","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=408742"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/408742\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/408743"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=408742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=408742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=408742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}