Spirit Airlines is reportedly preparing to shut down indefinitely after filing for bankruptcy last summer, as recent government bailout negotiations appear to have failed.
On Friday, President Donald Trump addressed the potential government bailout for the low-budget airline, signaling that a deal could be reached.
“Well, we’re looking at it, but if we can’t make a good deal, no institution has been able to do it,” Trump said. “I said I’d like to save the jobs, but we’ll have an announcement sometime today. We gave them, we gave them a final proposal.”
Despite the president’s willingness to negotiate, Republican lawmakers largely oppose the $500 million bailout, and doubts are growing. On Friday, the airline’s stock plunged 65 percent.
Fox5 News reached out to Spirit directly. The company declined to comment on negotiations, but said Spirit is operating as usual.
Passengers express concerns
At Harry Reid International Airport, passengers shared their concerns about a possible shutdown.
“It’s really going to hurt the travel industry a lot. And we’re already seeing the decline of travel here in Las Vegas, not just internationally, but domestically as well. Because inflation has really hurt everybody and everything,” said Brittany Thibault, a passenger.
In August, when Spirit filed for bankruptcy for the second time, the company had 25,000 direct employees and independent contractors, including more than 3,000 pilots, 5,000 flight attendants and 600 aircraft maintenance technicians.
The president for the AFA-CWA, the union that represents Spirit Airlines’ flight attendants, provided a social media post directed at President Donald Trump.
“If @realDonaldTrump wants to help @SpiritAirlines he can do it. It’s in his hands. Everyday Americans will hurt - beyond the nearly 20k employees who will lose their livelihoods - it will cost consumers $1B annually. If you’re in charge @POTUS then make it happen now,” the post said.
Thibault said she plans to go to Thailand in December and is uncertain what that will look like if Spirit goes out of business.
For now, passengers should check their bookings and stay alert as this story develops.
Source: Fox5
--Agencies
