Budget airlines face unlikely federal aid after Spirit Airlines collapse
Updated
Updated · POLITICO · May 4
Budget airlines face unlikely federal aid after Spirit Airlines collapse
8 articles · Updated · POLITICO · May 4
Spirit folded on Saturday after a proposed $500 million bailout failed, while the Association of Value Airlines is seeking $2.5 billion as fuel costs rise during the Iran war.
Duffy said carriers still have access to cash and any rescue would require Congress, where opposition is strong, including from Senate Commerce Chair Ted Cruz and major-airline trade group Airlines for America.
Separately, a new DHS spending law set aside $140 million for a possible 3.8% pay rise for air traffic controllers in 2026, pending FAA Administrator Bryan Bedford's decision.
With Spirit's collapse and soaring fuel costs, is the era of ultra-low-cost air travel coming to an end?
Amidst airline failures and controller shortages, how can passengers be confident that America’s aviation system remains safe?
Why reject an airline bailout due to cost while simultaneously increasing trade tariffs that could raise consumer prices?