Spirit Airlines has asked Trump for an emergency bailout to avoid bankruptcy

14,835 Views | 181 Replies | Last: 17 days ago by Jock 07
GAC06
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AG
Quote:

"If no one else wants to buy them, why would we buy them?"


Because they can "buy" them with our money for a short term political gain.
WestAustinAg
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AG
I am for a limited bailout...with union concessions that reduce their labor expenses...move hq to a low cost state...


1. We already dont have enough real competition. So use SPirit as a way to increase competition...by forcing permanent labor reductions...
2. When Spirit leaves a city...the pricing of airfare goes up.
3. Open up more small airports that compete with the big regional airports.
4. Get the price of fuel down.

Get this country moving again.
Logos Stick
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Trump is acting like he is a private businessman, picking up a company for a turnaround and using taxpayer money!

No!
aggiehawg
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AG
WestAustinAg said:

I am for a limited bailout...with union concessions that reduce their labor expenses...move hq to a low cost state...


1. We already dont have enough real competition. So use SPirit as a way to increase competition...by forcing permanent labor reductions...
2. When Spirit leaves a city...the pricing of airfare goes up.
3. Open up more small airports that compete with the big regional airports.
4. Get the price of fuel down.

Get this country moving again.

Good luck with that. This ain't the 80s.
AgDev01
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AG
WestAustinAg said:

I am for a limited bailout...with union concessions that reduce their labor expenses...move hq to a low cost state...


1. We already dont have enough real competition. So use SPirit as a way to increase competition...by forcing permanent labor reductions...
2. When Spirit leaves a city...the pricing of airfare goes up.
3. Open up more small airports that compete with the big regional airports.
4. Get the price of fuel down.

Get this country moving again.


This might be the most socialist thing ever advocated for on this board.

How about we keep the government from bailing out failing businesses and using its influence to manipulate the market
YouBet
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WestAustinAg said:

I am for a limited bailout...with union concessions that reduce their labor expenses...move hq to a low cost state...


1. We already dont have enough real competition. So use SPirit as a way to increase competition...by forcing permanent labor reductions...
2. When Spirit leaves a city...the pricing of airfare goes up.
3. Open up more small airports that compete with the big regional airports.
4. Get the price of fuel down.

Get this country moving again.


Non-starter. Many of the current small airports only exist because they are already subsidized by the government. Otherwise, they would shut their doors.
Science Denier
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Ag_of_08
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AG
What happened to people paying what they owe or failing? They need to pull themselves up by the bootstraps, they clearly arent working hard enough or putting in enough effort.

GAC06
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WestAustinAg said:

I am for a limited bailout...with union concessions that reduce their labor expenses...move hq to a low cost state...


1. We already dont have enough real competition. So use SPirit as a way to increase competition...by forcing permanent labor reductions...
2. When Spirit leaves a city...the pricing of airfare goes up.
3. Open up more small airports that compete with the big regional airports.
4. Get the price of fuel down.

Get this country moving again.


Spirit already got pay concessions from their pilots and flight attendants. They are headquartered in Florida.

https://www.reuters.com/business/world-at-work/spirit-airlines-unions-agree-pay-cuts-flight-attendants-pilots-2025-11-18/

From that article:

"Spirit filed for bankruptcy for the second time in a year in August; it said it expects to report losses until 2027"

Sounds like a sound investment
GAC06
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aggiehawg said:

WestAustinAg said:

I am for a limited bailout...with union concessions that reduce their labor expenses...move hq to a low cost state...


1. We already dont have enough real competition. So use SPirit as a way to increase competition...by forcing permanent labor reductions...
2. When Spirit leaves a city...the pricing of airfare goes up.
3. Open up more small airports that compete with the big regional airports.
4. Get the price of fuel down.

Get this country moving again.

Good luck with that. This ain't the 80s.


Already happened
Science Denier
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GAC06 said:

aggiehawg said:

WestAustinAg said:

I am for a limited bailout...with union concessions that reduce their labor expenses...move hq to a low cost state...


1. We already dont have enough real competition. So use SPirit as a way to increase competition...by forcing permanent labor reductions...
2. When Spirit leaves a city...the pricing of airfare goes up.
3. Open up more small airports that compete with the big regional airports.
4. Get the price of fuel down.

Get this country moving again.

Good luck with that. This ain't the 80s.


Already happened

I wonder what does one have to do to be relegated to flight attendant on a Spirit flight? Instead of getting lower pay, they should be given hazard pay.
eric76
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YouBet said:

WestAustinAg said:

I am for a limited bailout...with union concessions that reduce their labor expenses...move hq to a low cost state...


1. We already dont have enough real competition. So use SPirit as a way to increase competition...by forcing permanent labor reductions...
2. When Spirit leaves a city...the pricing of airfare goes up.
3. Open up more small airports that compete with the big regional airports.
4. Get the price of fuel down.

Get this country moving again.


Non-starter. Many of the current small airports only exist because they are already subsidized by the government. Otherwise, they would shut their doors.

We could go back to grass strips.
Ag with kids
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GAC06 said:

Quote:

I have never understood why but owning and airline seems to be a big deal, like owning a professional sports team.


Can you give some examples using current airlines?

Virgin Atlantic?
You can turn off signatures, btw
chris1515
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Maybe the SEC and DOJ could use this bailout as a trap to smoke out all the insider trading happening in the administration
aggiehawg
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Trump just trolling here?
Kenneth_2003
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Admittedly late to the party (this thread)...

But how many deals to with major airlines have already fallen thru? Delta? Jet Blue? Anyone else?
Kenneth_2003
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YouBet said:

WestAustinAg said:

I am for a limited bailout...with union concessions that reduce their labor expenses...move hq to a low cost state...


1. We already dont have enough real competition. So use SPirit as a way to increase competition...by forcing permanent labor reductions...
2. When Spirit leaves a city...the pricing of airfare goes up.
3. Open up more small airports that compete with the big regional airports.
4. Get the price of fuel down.

Get this country moving again.


Non-starter. Many of the current small airports only exist because they are already subsidized by the government. Otherwise, they would shut their doors.


Yup.
Look up the Essential Air Service...
Very heavily subsidized program that runs very low cost commercial service to small airports on even smaller planes.
aggiehawg
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Kenneth_2003 said:

Admittedly late to the party (this thread)...

But how many deals to with major airlines have already fallen thru? Delta? Jet Blue? Anyone else?

Jet Blue was blocked by regulators not because the deal fell through. They would have acquired it had they been allowed, IIRC.
Sq 17
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The discount airlines need to merge ( allegiant , frontier , jet blue , & spirit ) or United and American will slowly run them out of business

This new airline would have a hub in Las Vegas , Denver, Detroit, & NYC and would have newer planes and no stupid regional jets
10andBOUNCE
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10andBOUNCE said:

I'm trying to rack my brain for even one moderately logical reason to bail out a failing airline.

Thought of one. Buy Spirit for the purposes of making a fleet of ICE planes to speed up necessary deportations.
YouBet
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Sq 17 said:

The discount airlines need to merge ( allegiant , frontier , jet blue , & spirit ) or United and American will slowly run them out of business

This new airline would have a hub in Las Vegas , Denver, Detroit, & NYC and would have newer planes and no stupid regional jets


I've realized over time that I prefer regional jets. Give me 2 seater rows over 3 any day.
aggiehawg
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10andBOUNCE said:

10andBOUNCE said:

I'm trying to rack my brain for even one moderately logical reason to bail out a failing airline.

Thought of one. Buy Spirit for the purposes of making a fleet of ICE planes to speed up necessary deportations.

And Con Air flights.
10andBOUNCE
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aggiehawg said:

10andBOUNCE said:

10andBOUNCE said:

I'm trying to rack my brain for even one moderately logical reason to bail out a failing airline.

Thought of one. Buy Spirit for the purposes of making a fleet of ICE planes to speed up necessary deportations.

And Con Air flights.

Some kind of mural of Nicholas Cage would be much encouraged.
HDeathstar
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WestAustinAg said:

I am for a limited bailout...with union concessions that reduce their labor expenses...move hq to a low cost state...


1. We already dont have enough real competition. So use SPirit as a way to increase competition...by forcing permanent labor reductions...
2. When Spirit leaves a city...the pricing of airfare goes up.
3. Open up more small airports that compete with the big regional airports.
4. Get the price of fuel down.

Get this country moving again.

This is how it is supposed to work vs throwing money at losers. Spirit goes under, prices go up, new competitor moves into the market and drives prices down. New competitors need higher prices before they move in, and the new competitors will hopefully avoid the mistakes of Spirit and run a good business. The new competitor could buy the assets cheap and already have a head start. Just takes time.

For the Bond holders, they are knowledgeable investors, and knew the risks. They also took over the cash when they filed for Bankruptcy.

Bankruptcy is a Govt allowed process that provides lots of benefits for a company. The Govt. does not have to throw cash at them too.

Trump is 100% floating them money to avoid the Press putting out a list of companies that went under because of a direct relation to the Iran war. This is the only reason.
one safe place
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Merge Spirit Airlines with Waffle House and have them owned by a mixed martial arts or boxing entity. Offer plenty of low priced alcohol and stir up **** amongst the customers. Have contests for the fattest ass, best punch, worst punch, chair toss (one for accuracy, one for distance), guessing who their daddy is, most kids from different fathers, and put it all on PPV.
Burdizzo
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Kenneth_2003 said:

YouBet said:

WestAustinAg said:

I am for a limited bailout...with union concessions that reduce their labor expenses...move hq to a low cost state...


1. We already dont have enough real competition. So use SPirit as a way to increase competition...by forcing permanent labor reductions...
2. When Spirit leaves a city...the pricing of airfare goes up.
3. Open up more small airports that compete with the big regional airports.
4. Get the price of fuel down.

Get this country moving again.


Non-starter. Many of the current small airports only exist because they are already subsidized by the government. Otherwise, they would shut their doors.


Yup.
Look up the Essential Air Service...
Very heavily subsidized program that runs very low cost commercial service to small airports on even smaller planes.


The federal government used to highly regulate passenger rail. Back in the 1950s and 60s, passenger rail became so unprofitable the railroads begged to be released from this requirement. The leadership at the time felt that passenger rail was still in the interest of the country, so the compromise was that the federal government would nationalize the passenger rail service and force the railroads to allow this national passenger rail operator access to privately owned rails. AMTRAK was born, and with the exception of the northeast rail corridor it has been hemorrhaging money ever since. I see passenger air suffering the same problems. The service sucks, and operators complain it is too hard to make money. Something has to change, but nationalizing it is not the answer
Kenneth_2003
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AG
I'm not advocating for it.
But it's already done... Some of the regionals are covered under it United/SkyWest at Victoria for example. But if you want to fly to Carlsbad, NM... You can. It used to be a carrier called Boutique Air on a Pilates aircraft. $79 flight to Albuquerque where I was about to go through TSA and fly American to DFW then IAH...
Burdizzo
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I didn't think you were advocating for it. Just thought I recognized some similarities.

Years ago I had a project in Warner Robbins, GA. Macon was 15 minutes away. Atlanta Hartsfield airport was about an hour and a half away. When I would book flights in and out, "Macon International Airport" was an option. If I caught a flight out of Macon, I had to make a connection in ATL which would add another hour to the flight. Or I could just drive and park at ATL and skip a connection. Not long ago I noticed Macon was no longer "international" and now just a regional airport with no commercial service from Atlanta. The explanation was just what you posted. If not for the subsidy, it would not have commercial service
YouBet
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Burdizzo said:

Kenneth_2003 said:

YouBet said:

WestAustinAg said:

I am for a limited bailout...with union concessions that reduce their labor expenses...move hq to a low cost state...


1. We already dont have enough real competition. So use SPirit as a way to increase competition...by forcing permanent labor reductions...
2. When Spirit leaves a city...the pricing of airfare goes up.
3. Open up more small airports that compete with the big regional airports.
4. Get the price of fuel down.

Get this country moving again.


Non-starter. Many of the current small airports only exist because they are already subsidized by the government. Otherwise, they would shut their doors.


Yup.
Look up the Essential Air Service...
Very heavily subsidized program that runs very low cost commercial service to small airports on even smaller planes.


The federal government used to highly regulate passenger rail. Back in the 1950s and 60s, passenger rail became so unprofitable the railroads begged to be released from this requirement. The leadership at the time felt that passenger rail was still in the interest of the country, so the compromise was that the federal government would nationalize the passenger rail service and force the railroads to allow this national passenger rail operator access to privately owned rails. AMTRAK was born, and with the exception of the northeast rail corridor it has been hemorrhaging money ever since. I see passenger air suffering the same problems. The service sucks, and operators complain it is too hard to make money. Something has to change, but nationalizing it is not the answer

It's always been hard to make money in the airline business though. The reason SWA was so successful for so long was because their model was simple and lean compared to the legacies at the time. They also pioneered fuel hedging in the airline space which most airlines stopped doing after they got past the 2008 fuel run-up. Airlines should be looking at that practice again.

I think the other thing is what I mentioned earlier in that we've just entered this revenue extraction phase within alot of sectors. Airlines have become masters of Revenue Management as the technology has advanced...to the point that they don't even need to overbook anymore. They are extracting every dollar they can out of every seat on every flight and they are as good as they've ever been with network optimization also due to technology.

Now throw some AI into that tech and it's only going to get more efficient...for them. And that process is not about Customer Service; it's about revenue extraction. I would argue that customer service side of air travel has been outsourced to the airports by airlines at least within the domestic market. A few foreign airlines are a different matter because they are state funded and can afford to be lavish with in-air customer service.
txags92
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YouBet said:

Burdizzo said:

Kenneth_2003 said:

YouBet said:

WestAustinAg said:

I am for a limited bailout...with union concessions that reduce their labor expenses...move hq to a low cost state...


1. We already dont have enough real competition. So use SPirit as a way to increase competition...by forcing permanent labor reductions...
2. When Spirit leaves a city...the pricing of airfare goes up.
3. Open up more small airports that compete with the big regional airports.
4. Get the price of fuel down.

Get this country moving again.


Non-starter. Many of the current small airports only exist because they are already subsidized by the government. Otherwise, they would shut their doors.


Yup.
Look up the Essential Air Service...
Very heavily subsidized program that runs very low cost commercial service to small airports on even smaller planes.


The federal government used to highly regulate passenger rail. Back in the 1950s and 60s, passenger rail became so unprofitable the railroads begged to be released from this requirement. The leadership at the time felt that passenger rail was still in the interest of the country, so the compromise was that the federal government would nationalize the passenger rail service and force the railroads to allow this national passenger rail operator access to privately owned rails. AMTRAK was born, and with the exception of the northeast rail corridor it has been hemorrhaging money ever since. I see passenger air suffering the same problems. The service sucks, and operators complain it is too hard to make money. Something has to change, but nationalizing it is not the answer

It's always been hard to make money in the airline business though. The reason SWA was so successful for so long was because their model was simple and lean compared to the legacies at the time. They also pioneered fuel hedging in the airline space which most airlines stopped doing after they got past the 2008 fuel run-up. Airlines should be looking at that practice again.

I think the other thing is what I mentioned earlier in that we've just entered this revenue extraction phase within alot of sectors. Airlines have become masters of Revenue Management as the technology has advanced...to the point that they don't even need to overbook anymore. They are extracting every dollar they can out of every seat on every flight and they are as good as they've ever been with network optimization also due to technology.

Now throw some AI into that tech and it's only going to get more efficient...for them. And that process is not about Customer Service; it's about revenue extraction. I would argue that customer service side of air travel has been outsourced to the airports by airlines at least within the domestic market. A few foreign airlines are a different matter because they are state funded and can afford to be lavish with in-air customer service.

I think "revenue extraction" is what is ruining airlines. I get that treating the whales who fly 50 weeks a year is good business, but everything else seems aimed at nickel and diming the passenger and making the experience as miserable as possible if you don't pay them extra at every step of the process. Nothing Southwest has done in the last 3-4 years has made them a better airline IMO. I am way less likely to voluntarily choose to fly them now than I was 3 years ago because what made them different and valuable to me is gone, replaced by ****ty customer service and Spirit Airlines style extra charges everywhere you turn. The only real reason I still fly them at all is because I have a bunch of CC reward points with them that I need to burn off and I am going to be ditching their CC soon for one that gets me points I want to use.
Kenneth_2003
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AG
Lets not forget...
United Airlines (and I assume the others as well) is no longer an airline. They are a credit card company with a very large fleet of corporate jets that they'll allow the general public to use at a price.

Same goes for IHG (Holiday Inn), Bonvoy (Marriot), and others.
EFR
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United gets money from the branding and selling points to the issuers such as JP Morgan and chase. They make a ton of money on it but that is really as far as their involvement goes.
eric76
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AG
Some news stories are reporting that Trump seems to want to buy the entire airline.

In other words, economics wouldn't matter any more -- the government could just print more money to keep it in operation.
Sq 17
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I have been flying to Des Moines recently and United has 2 flights a day ; an airbus that is basically brand new and and a regional jet that the interior is as ragged as my 15 year old suburban

My other direct option is Allegiant which only operates one flight 2 days a week they have a similar schedule out of Austin

I loved the old SWA and it would be awesome if a new carrier with a full route map could emerge from combining the failing "discount" airlines

Also flew spirit when I had to go to Detroit and United wanted too much damn money. Before booking I did some research and Spirit has one of the youngest fleet of airplanes in the industry
Burpelson
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The entire Airline Industry is a racket and has and is going to be bailed out again and again and again.
 
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