Reuters quoted two informed sources on Friday evening stating that the low-cost carrier Spirit Airlines, which had previously filed for bankruptcy, is preparing to cease operations today, Saturday, at approximately 3:00 AM (07:00 GMT).
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One of the sources noted that Spirit's board of directors meeting concluded without reaching a deal to save the company.
The collapse of Spirit will lead to the loss of thousands of jobs, making it the first airline to fail, partly due to the surge in jet fuel prices during the ongoing two-month war with Iran.
According to Reuters, this represents a blow to U.S. President Donald Trump, who had proposed allocating $500 million to rescue Spirit, despite opposition from some of his closest advisors and many Republicans in Congress.
No U.S. airline of Spirit's scale has faced liquidation in two decades; at one point, the carrier accounted for 5% of all flights in the United States. Spirit was instrumental in keeping airfares low in markets where it competed with major airlines.
Transportation Secretary Sean Duffy told Reuters that he attempted to persuade several airlines to acquire Spirit, but found no willing buyers.
Reuters reported that a company spokesperson declined to comment on the ongoing discussions. President Trump stated on Friday that the White House had presented Spirit and its creditors with a final proposal in an attempt to save the airline.
Furthermore, the White House has contacted other airlines to discuss how to accommodate passengers holding Spirit tickets. United Airlines, American Airlines, Frontier Airlines, and JetBlue announced on Friday that they are preparing to provide support to Spirit’s customers.
(Source: Reuters)
