The senator Ted CruzR-Texas, came out Wednesday strongly against the Trump administration’s proposed plan to bail out Spirit Airlines.
Cruz responded to reports that the administration’s plan would see the U.S. government own up to 90% of the airline. President Donald Trump On Tuesday, the idea of buying the airline was the first to be floated.
“This is an absolutely TERRIBLE idea,” Cruz wrote in a statement on X.
“The TARP corporate bailouts were a huge mistake and the government knows absolutely nothing about running a bankrupt low-cost airline (which the Biden admin killed),” he added.
BIDEN-SCHUMER-PELOSI WOULD DO MORE DAMAGE IN 2 YEARS THAN OBAMA DID IN 8: TED CRUZ
Sen. Ted Cruz, R-TX, speaks during a news conference. (Chip Somodevilla/Getty Images/Getty Images)
Cruz was joined by Sen. Tom Cotton, R-Ark., in pushing back against the plan this week. Cotton argued it was “not the best use of taxpayer dollars.”
“If Spirit’s creditors or other potential investors don’t think they can run the company profitably after its second bankruptcy in less than two years, I doubt the U.S. government can either,” Cotton wrote on X.
Actions in this article: Trump was interviewed on CNBC’s “Squawk Box” Tuesday and said, “I don’t mind mergers,” suggesting it could help solve the problems Spirit faces.
GOP SENATORS EXPRESS ‘CONCERNS,’ ‘SKEPTICISM’ ABOUT TRUMP SPENDING BILL AFTER MUSK RANT
President Donald Trump walks toward reporters before answering questions before boarding Air Force One. (Win McNamee/Getty Images / Getty Images)
“You know, Spirit is in trouble, and I would like someone buy Spirit. That’s 14,000 jobs, and maybe the federal government should help that one out,” the president said.
He then distinguished a merger involving Spirit from reports of a possible merger between United Airlines and American Airlines, saying those companies “are doing very well. I don’t like them to merge.”
Secretary of Transportation, Sean Duffy spoke at an event on reforms to the nation’s air traffic control system on Tuesday and took note of the president’s comments, adding that he would look into the matter.
AMERICAN VICTIMS OF TERRORISM COULD SOON SUE INTERNATIONAL ORGS IF CRUZ BILL PASSES
Spirit Airlines has filed an application for its second bankruptcy in August 2025, amid growing losses and dwindling cash reserves. The low-cost carrier first filed for Chapter 11 bankruptcy in November 2024 after merger negotiations with JetBlue and Frontier failed.
A JetBlue jetliner lands in front of a Spirit Airlines jet on a taxi lane at Fort Lauderdale Hollywood International Airport. (Joe Cavaretta/South Florida Sun Sentinel/Tribune News Service via Getty Images / Getty Images)
In late February, Spirit announced a deal that would allow it to emerge from bankruptcy proceedings by early summer, after reaching an agreement with lenders.
The airline told the bankruptcy court that the deal would allow it to become a leaner carrier, focusing on routes and times when demand is highest, while reducing some of its high costs. plane rentals and improve the utilization of its remaining fleet.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
It also planned to expand premium seating options and improve its loyalty programs to stimulate customer loyalty and preserve its low-cost positioning.
Eric Revell of Fox Business contributed to this report.
