US President Donald Trump said Tuesday he would like someone to acquire bankrupt low-cost carrier Spirit Airlines and said it was possible the federal government could get involved.
The statement comes forward when Airlines around the world are grappling with higher jet fuel prices from the U.S.-Iran war, uncertainty that has again raised questions about consolidation.
However, the President said on Tuesday that he opposed a possible merger between United Airlines and American Airlines.
Trump was asked during an early morning appearance on CNBC’s Squawk Box about a proposed merger between the two airline giants.
Donald Trump weighed in on the airline industry, saying Spirit Airlines is struggling and he’d like to see a buyer step in to protect its 14,000 jobs. He said,
“I don’t like it, no. I don’t mind mergers, I’d love someone to buy Spirit, as an example,” Trump said.
“I’d love somebody to buy Spirit, it’s 14,000 jobs, and maybe the federal government should help that one out.”
The president’s comments come as Spirit has considered offering the U.S. government an equity stake in the discount carrier to help stave off its potential liquidation, according to people familiar with the matter.
Earlier, Spirit had declined offers from Frontier Airlines to acquire the embattled airline. A separate bid by JetBlue to purchase the company was blocked in federal court.
Spirit is seeking an infusion of cash from the U.S. government during a spike in jet fuel prices, according to people familiar with the deliberations.
“But with American it’s doing fine, and United is doing very well, I know the United people, they’re doing very well,” the president added. “I don’t like having them merge.”
Last week, it was reported that United Airlines CEO Scott Kirby pitched a merger between his company and American Airlines during a meeting with the president in February on the future of Washington Dulles International Airport.
Trump said that mergers could be problematic, citing issues that had arisen in the aerospace and defense industries.
“It’s just like all of these aerospace, defense companies and aerospace companies, we used to have hundreds of them, and now we have a very small number, and you get one bid, and it makes them lazy,” he said.
American has since said it’s not engaged with or interested in any discussions with United. Kirby and his company, which report earnings later on April 21, haven’t commented on the report.
A number of Democrats have spoken out against the idea of a United-American merger. Sen. Ruben Gallego (D-Ariz.), said last week on the social platform X,
“That’s gonna be a no,” while Matt Stoller, a researcher at the anti-monopolist American Economic Liberties Project, said such a merger would constitute “corporate crime” that is “now legal.”
You may like to read......
.jpg)
.jpg)
