April 22 (Reuters) – The Trump administration has neared a deal to rescue embattled low-cost carrier Spirit Airlines, The Wall Street Journal reported on Wednesday, citing people familiar with the matter.
The U.S. government will lend Spirit as much as $500 million in exchange for warrants to take a potential stake in the carrier, according to the report.
Spirit, best known for its bright yellow all-Airbus fleet, built its brand around affordable fares for budget-conscious travelers ready to eschew add-ons such as checked bags and seat assignments.
Spirit declined to comment on the matter but said it was operating normally. The White House did not immediately respond to Reuters’ request for a comment.
The move to purchase the troubled carrier comes after U.S. President Donald Trump told CNBC that he would like someone to acquire Spirit and said it was possible that the federal government could get involved.
(Reporting by Nathan Gomes in Bengaluru; Editing by Shreya Biswas)
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