# Trump Proposes Buying Spirit Airlines via Defense Production Act

_Apr 24 23:30_

Tags: Spirit Airlines, US, airline, safety & operations, industry news

The Trump administration plans to use the Defense Production Act to lend Spirit Airlines $500 million, ultimately securing a 90% government stake in the carrier

## Summary

The Trump administration is reportedly working on a plan to bail out Spirit Airlines by using the Defense Production Act, an emergency power typically used for national defense priorities. The proposal involves lending Spirit $500 million at a reasonable interest rate, with the government becoming the top debtor in the bankruptcy pecking order. This structure would allow the government to secure a warrant for 90% ownership of the airline after it emerges from bankruptcy. The Pentagon may also utilize Spirit's excess capacity for troop and military cargo transport. The long-term goal is to sell the airline to another carrier, though critics question the logic given Spirit's history of operating losses and lack of prior buyer interest. This move represents a significant shift in airline industry dynamics, potentially impacting competition and route networks

## Why it matters

Affects Spirit Airlines loyalty members and route planners.

## Sources cited

- [One Mile at a Time](https://onemileatatime.com/news/trump-buying-spirit-airlines-national-defense) — Trump Claims Buying Spirit Airlines Is Necessary For National Defense

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