SouthernWorldwide.com – Spirit Airlines is reportedly making preparations to cease operations as early as Saturday, unless a last-minute intervention can be secured.
This development comes as negotiations for a crucial $500 million government aid package have reportedly stalled. Bondholders are said to have balked at the terms proposed for the bailout.
Sources familiar with the discussions have indicated that officials from the Trump administration have been informed of Spirit’s impending shutdown within the next 24 hours. There will be no further efforts from the administration to facilitate a bailout, according to these sources.
However, when questioned about a potential bailout for Spirit Airlines on Friday, President Trump stated that the administration was “looking at it.” He added that if a deal could be made, it would only be if it were a “good deal.”
The President, who was departing for Florida from the White House at the time, informed reporters that he would like to save the jobs but that an announcement would be made later that day. He also mentioned that a final proposal had been presented to the airline.
Previously, CBS News had reported that Spirit Airlines’ available cash on hand was projected to last only a few more days.
Despite the looming possibility of closure, Spirit continued its normal flight operations on Friday. Sources close to the airline emphasized that the company’s primary focus remained on safely completing all scheduled flights.
Read more: Golden Tempo Triumphs at 152nd Kentucky Derby, Historic Win for Trainer
A spokesperson for the airline, which is currently in bankruptcy, declined to comment on the ongoing discussions. The spokesperson’s only statement was that “Spirit is operating as usual.”
Employees at Spirit’s headquarters in Dania Beach, Florida, spent Friday in a state of anticipation, awaiting news regarding the future of the airline and their employment. Although no official communication had been made to staff about the next steps, one Spirit employee shared with CBS News that “Everybody knows.”
Spirit Airlines serves a network of over 40 cities within the United States. Additionally, the airline flies to international destinations in Central and South America. Its main hub is located at Fort Lauderdale-Hollywood International Airport in Florida.
Industry experts have suggested that the shutdown of Spirit Airlines would have significant repercussions across the commercial aviation sector. It is anticipated that the market would experience higher airfares due to the exit of a major budget carrier.
Furthermore, passengers who have already purchased tickets would face the challenge of needing to quickly make alternative travel arrangements.
Update: Spirit Airlines announced early Saturday morning that it had commenced winding down its operations and was canceling all of its flights after failing to secure a federal bailout.
