We know that Spirit Airlines is on the verge of liquidation, as the airline is in Chapter 11 bankruptcy for the second time in two years. Over the past week, we’ve learned that the government is planning on bailing out the airline.
President Trump claims he doesn’t want the jobs to be lost, so he plans to use the Defense Production Act to give the airline a $500 million lifeline, which will likely ultimately result in the government owning a 90% stake in the airline, given the rate at which Spirit is burning through cash.
While I hate the thought of Spirit employees losing their jobs, the airline has been losing money since before the pandemic, and unfortunately I believe it’s time to let the company just die, and focus on healthy competition. It’s one thing if this were just a temporary issue due to high jet fuel prices, but this is a much bigger structural issue than that due to how the industry has evolved.
A great solo travel tip spotted this week on One Mile at a Time.
