Over the past week or so, there has been lots of talk of the government bailing out Spirit Airlines, which is on the brink of liquidation. If finalized, this would almost certainly give the government a 90% stake in the budget carrier. There’s now talk of a much broader industry bailout, which I have to imagine might just become a reality.
Under the proposal, the airlines are seeking a roughly $2.5 billion aid package, which is how much more they estimate they will spend on jet fuel this year compared to earlier forecasts, assuming jet fuel prices remain above $4 a gallon. This support would likely come in the form of warrants that could convert into equity stakes in the company.
Discussions are expected to continue in the coming days, and it remains to be seen what comes of this proposal.
A great solo travel tip spotted this week on One Mile at a Time.
