Spirit Airlines was banking on a possible $500 million lifeline from Donald Trump’s administration, but the deal has not been successful and the airline plans to shut down, The New York Times reported.
According to the report, some investors in Spirit were opposed to the terms set by the bailout — one of them being that the government would own 90% of the airline.
Spirit had filed for bankruptcy twice but planned on returning to a healthy status before jet fuel prices took off due to the Iran-U.S. war.
It is unclear when the airline will shut down, and a company spokesman told the Times that it was operating normally.
