White House mulls using Defense Production Act in Spirit Airlines takeover
Source: CBS News
April 24, 2026 / 3:39 PM EDT
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. President Trump is open to some type of federal action, several sources told CBS News, and he has said publicly he'd "do it to save the jobs."
Spirit has declared bankruptcy twice in the past two years, after the Department of Justice blocked a merger with JetBlue during the Biden administration. The Iran war has been driving up jet fuel costs for all airlines and earlier this month, creditors expressed serious doubts Spirit could remain viable.
The Defense Production Act is an emergency power typically used to compel private sector companies to prioritize government contracts and increase supplies of critical goods. It also includes providing loan authority to private firms for national defense, potentially a lifeline for the airline.
The strategy would be subject to approval from Spirit's creditors, two of the officials told CBS News. The Office of Management and Budget has explored what a federal bailout of Spirit Airlines would look like and has discussed possibilities that would include Commerce Department and Pentagon involvement.
Read more: https://www.cbsnews.com/news/white-house-mulls-using-defense-production-act-in-spirit-airlines-takeover/
JBTaurus83
(1,566 posts)This is just more corporate welfare fascism. I think the general public is quite tired of either party bailing out large private entities. If Spirits business model was a failure, let it fail. It isnt as if we dont have other airlines in this country.
CivicGrief
(265 posts)of business. Another deeply held belief sacrificed at the altar of Trump.
littlemissmartypants
(34,136 posts)It was sloganeering. There's nothing deep about them, especially when it comes to their beliefs.
Bluejeans
(158 posts)I don't care what kind of business you're in, you have to cover your direct and indirect expenses or else you go bankrupt.
This is Spirit's second trip into bankruptcy which states the obvious: their fares aren't covering the direct and indirect expenses, let alone providing any profit.
I read the other day that Jet Blue is in pretty bad financial shape, too, most likely from the same problem of having a hard time covering expenses with the fares they're charging people.
kimbutgar
(27,396 posts)The US taxpayer should not have to bail out a company that is not run efficiently !
Lovie777
(23,295 posts)Fuck helping the American people. Shithole thinks everything belongs to him.
RainCaster
(13,793 posts)The right answer is "hell no"!
jmowreader
(53,295 posts)The only thing I can think of here as to why Trump would do this is he wants to use Spirit's planes for deportation flights.
ClaudetteCC
(187 posts)If it were just about deportation flights ICE could merely contract/charter the planes.
aggiesal
(10,864 posts)Now he wants to bankrupt Spirit. I know they're going bankrupt anyway, but I can't believe Mierda47 could save this airline, so he'll just bankrupt it himself, using our money.

ClaudetteCC
(187 posts)jmowreader
(53,295 posts)It is a Boeing 727, which is the airliner the Trump Shuttle used.
eggplant
(4,220 posts)Grins
(9,491 posts)But for a personal war of choice? Sure.