Spirit Airlines Shuts Down After Bailout Fails
Spirit Airlines has shut down after bailout talks failed. It is the first major United States airline to close in 25 years.
About 17,000 workers lost their jobs. The airline had been in talks with the Trump administration about a $500 million rescue.
But talks with bondholders broke down and no deal was reached. Trump said the United States would only help if it was a good deal.
Klear Note — Spirit Airlines was a low-cost carrier serving millions of US travelers. Airline bankruptcies are rare; the last major US airline closed 25 years ago.
Key Terms 2
- bailout Money given by the government to save a failing company
- bondholders People or firms that lent money to a company and are owed repayment