Originally Posted by
willy702
I wonder what sort of terms the Feds would put on a package for Spirit now? If so, would Frontier do the same? Or would they be incentivized to merge with Spirit? What's left of Spirit has to look a lot better than what they would have bought 2 years ago and makes a lot more sense with far less overlap for routes and passengers.
I can't really believe the Feds would put money into Spirit as a standalone. And, frankly, I wouldn't want them to put any money into any "deal." Spirit failed because their business model failed. Yes, it's unfortunate the Biden people wouldn't let them merge with JetBlue (which most people knew made zero sense), but it's not really up to Trump to correct past governmental mistakes.
I could see Secretary Duffy trying to jawbone Spirit's creditors and Frontier management to come to some sort of merger deal. They'd probably want some Fed liquidity, though. Personally, I don't think that's the proper role of government for failed business models, and I'm not super confident the merged airline would be viable either. Remember, Frontier has been slowly going broke. Buying parts of Spirit is unlikely to result in more profitability, unless they can change the model.