This Is Why The Trump Administration Should Not Bail Out Spirit Airlines

President Trump is considering bailing out Spirit Airlines with hundreds of millions of taxpayer dollars. Spirit, a low-fare carrier, is facing its second bankruptcy due to high fuel costs and is seeking a $500 million cash infusion to avoid liquidation. The proposed deal might give the government 90% equity in the airline. Commerce Secretary Howard Lutnick supports the idea, but Transportation Department Chief Sean Duffy has strong reservations. This move would set a dangerous precedent, especially after previous government stakes in companies like Intel and US Steel. Democrats could use such state socialism to seize control over parts of the economy, starting with healthcare, if they regain power. A bailout for Spirit could lead to similar requests from other struggling airlines. However, unlike the pandemic, the current fuel shocks are not threatening all carriers, as most are strong enough to weather the turbulence. Providing taxpayer money to Spirit would give it an unfair advantage and incentivize politicians to subsidize a floundering carrier at the expense of healthy ones. Republicans, in particular, should avoid creating an uneven playing field where politics, not consumers, dictate outcomes. This intervention would also compound a previous policy error from 2022 when a merger between JetBlue and a then-struggling but viable Spirit was blocked. That decision was a perversion of antitrust policy, as the merger could have preserved Spirit's ultra-low-fare service and allowed it to modernize its fleet.