By MAE ANDERSON and AAMER MADHANI, Associated Press<\/p>\n
NEW YORK (AP) \u2014 President Donald Trump said Thursday that he was weighing a taxpayer-funded takeover\u00a0of Spirit Airlines<\/a> with the intent of reselling the struggling budget carrier after oil prices drop.<\/p>\n The president confirmed his continued interest in offering Spirit a financial lifeline after a lawyer told a U.S. Bankruptcy Court that the airline was in advanced talks with the U.S. government on a financing deal that would allow Spirit to emerge from Chapter 11 protection.<\/p>\n \u201cThey have some good aircraft and good assets, and when the prices of oil goes down, we\u2019ll sell it for a profit,\u201d Trump said, speaking at an unrelated Oval Office event. \u201cI\u2019d love to be able to save those jobs. I\u2019d love to be able to save an airline.\u201d<\/p>\n Trump stoked speculation of a deal to save Spirit on Tuesday when he encouraged a buyer to rescue the airline and suggested the federal government could help keep it afloat.<\/p>\n The White House has attempted to blame Spirit\u2019s predicament on the Biden administration, which in 2023\u00a0sued to stop<\/a>\u00a0JetBlue Airways from buying Spirit for $3.8 billion. A little more than a year before Trump replaced Joe Biden as president, a federal judge in Dallas blocked a proposed\u00a0Spirit-JetBlue merger<\/a>, saying it would drive up airfares for passengers.<\/p>\n Trump said he had \u201ca smart person\u201d in mind who could potentially run Spirit and that he believed the airline could get back on solid financial footing.<\/p>\n \u201cAnd they have some very good slots too, which are pretty valuable,\u201d the president added, referring to scheduled times allocated for airlines to take off or land at airports when demand exceeds available capacity.<\/p>\n Spirit has struggled with losses for years. The airline\u00a0filed for Chapter 11 protection<\/a>\u00a0in November 2024 and again in August 2025. With the Iran war driving up\u00a0jet fuel costs<\/a>\u00a0for all airlines, creditors earlier this month expressed doubts about Spirit\u2019s ongoing viability, raising the possibility the airline recognized for its bright yellow planes would be forced to sell its assets and cease operating.<\/p>\n Before Trump\u2019s comments about the government buying the airline outright, Marshall Huebner, a lawyer with Davis Polk who is representing Spirit, said during a U.S. Bankruptcy Court hearing in New York that government financing would make a reorganization possible and help Spirit be more competitive.<\/p>\n Details of a potential deal were shared with all three of the company\u2019s primary creditor groups, Huebner said.<\/p>\n It was not immediately clear how a federal acquisition would differ from the terms that were under discussion. The size and terms of the financing aid were not shared publicly. The Wall Street Journal and Bloomberg, citing unnamed sources, both reported an amount of $500 million that would give the government an option to acquire a sizable stake in the airline, which has its headquarters in Florida.<\/p>\n Earlier this week, Transportation Secretary Sean Duffy voiced skepticism about the government stepping in to keep Spirit alive. In a CBS interview that aired Tuesday night, Duffy questioned whether a deal would set a broader precedent.<\/p>\n \u201cThen who else comes to my door?\u201d he said, referring to other airlines potentially requesting government aid. \u201cThe question will be, can we do anything to save Spirit and make it viable, or would we be putting good money into a company that inevitably is going to be liquidated?\u201d<\/p>\n Several lawmakers, both Republican and Democrats, also balked at the idea of a bailout. Sen. Ted Cruz of Texas wrote on X on Wednesday that a deal for Spirit would be a \u201cterrible idea.\u201d<\/p>\n \u201cIf Spirit\u2019s creditors or other potential investors don\u2019t think they can run it profitably coming out of its second bankruptcy in under two years, I doubt the US Government can either,\u201d Tom Cotton, a senator from Arkansas, posted on X. \u201cNot the best use of taxpayer dollars.\u201d<\/p>\n The union that represents the airline\u2019s pilots, on the other hand, voiced \u201cstrong support\u201d for a rescue deal.<\/p>\n \u201cSpirit is the reason so many Americans can afford to visit family, travel for work, or take a vacation,\u201d said Capt. Ryan P. Muller, chair of the Spirit Airlines ALPA Master Executive Council. \u201cWhen Spirit enters a market, fares go down.\u201d<\/p>\n