US EditionUS Considers Using Defense Production Act in Spirit Airlines ...
Officials are considering a $500 million loan that would make taxpayers the top debtor and give them a 90% warrant after bankruptcy.
- The Trump administration is exploring using the Defense Production Act to rescue Spirit Airlines, aiming to preserve 14,000 jobs by utilizing the carrier's aircraft for national security missions.
- Spirit Airlines has filed for bankruptcy twice in two years, as soaring jet fuel costs and the Biden administration's decision to block a JetBlue merger pushed the carrier to collapse.
- Negotiations are underway for a $500 million bailout, which would grant the U.S. government up to a 90% ownership stake in the airline to stabilize its debt-ridden operations.
- Commerce Secretary Howard Lutnick advocates for the bailout to prevent liquidation, though Transportation Secretary Sean Duffy warned of political risks and Even Ted Cruz called it a "terrible idea."
- As of April 25, 2026, officials are finalizing the deal's terms; if negotiations fail, Spirit Airlines will likely liquidate its assets and shut down permanently.
17 Articles
17 Articles
US considers using defense production act for Spirit bailout
The Trump administration is weighing whether to invoke the Defense Production Act to support a potential bailout of Spirit Aviation Holdings Inc. according to a person familiar with the matter who requested anonymity because the talks are private.
U.S. considers using Defense Production Act for Spirit bailout
The Trump administration is weighing whether to invoke the Defense Production Act to support a potential bailout of Spirit Aviation Holdings Inc. according to a person familiar with the matter who requested anonymity because the talks are private. The 1950 law, enacted at the outset of the Korean War, gives the US president broad emergency powers to direct production of goods and services deemed critical to national defense, including extending …
From Bankruptcy to the Pentagon: How Trump Plans to Militarise Spirit Airlines
The Trump administration is preparing a rescue mission for a struggling commercial carrier. Facing imminent collapse, Spirit Airlines might soon trade its civilian routes for federal duties under a new proposal. Government officials are exploring options to transform the beleaguered budget airline into an operational extension of the United States military. Instead of shutting down for good, the airline could actually stay in business by flying …
Trump's Spirit bailout could come from 1950 law meant to protect national defense
President Donald Trump's plan to bail out and effectively nationalize Spirit Airlines could be facilitated by a 1950 law passed to secure national defense during the Korean War.According to CBS News, "The Trump administration is exploring using the Defense Production Act as part of a strategy to save the beleaguered Spirit Airlines, according to U.S. officials familiar with the discussions ... Spirit has declared bankruptcy twice in the past two…
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