Government blames Biden administration for Spirit shutdown
The Trump administration is blaming its predecessor for the abrupt and total shutdown of Spirit Airlines. The low-cost carrier ended operations on Saturday after 34 years in business.
Its immediate closure left thousands of travelers scrambling as all flights were suddenly canceled with no customer service available.
About 17,000 employees were also suddenly left without jobs.
Spirit says the shutdown is a direct result of the Iran war, with sky-high oil prices making it impossible for the super low cost carrier to stay in business.
“Unfortunately, despite the company’s best efforts, the recent material increase in oil prices and other pressures on the business have significantly impacted Spirit’s financial outlook,” Spirit said in a statement. “With no additional funding available to the company, Spirit had no choice but to begin this wind-down.”
Trump administration blames Biden
Despite what Spirit said, the Trump administration is blaming the Biden administration for the closure, saying it quashed a proposed merger between Spirit and fellow low-cost carrier JetBlue in 2023.
“Spirit was in dire straits long before the war with Iran,” U.S. Transportation Secretary Sean Duffy told reporters on Saturday. “Multiple times they had to file for bankruptcy. Their model wasn’t working. They couldn’t get to fiscal health.”
He added, “If the markets are saying there needs to be a merger because there’s health issues with one of the airlines or more than one airline, we have to take a look at it and make sure we make the right choices. And in this situation, history has judged the denial of the merger between JetBlue and Spirit through the Biden administration with, I think, a view that it was a massive mistake.”
Duffy said Spirit’s collapse does not signal broader trouble for budget airlines and he does not support a government bailout. Last week, several budget airlines, including Frontier and Avelo, requested $2.5 billion in government relief.
Duffy dismissed that request, saying some airlines were looking to cash in “not necessarily based on need, but based on opportunity.”
They asked Congress to suspend the 7.5% federal excise tax on plane tickets and the $5.30 per segment tax. They said waiving those fees would offset about one-third of the increased cost of jet fuel.
What happened to those who already bought tickets?
Spirit had scheduled about 4,000 flights through May 15, according to Reuters. Passengers who bought tickets before the shutdown are being issued full refunds.
Spirit says it is automatically processing refunds for flights purchased through the airline with a credit or debit card. However, Spirit customers who paid cash or used airline loyalty points could be out of luck, Eric Rosen, the director of travel content at The Points Guy, told CBS News.
Spirit said in its statement that “compensation for guests who booked flights” using a voucher, credit or free Spirit points “will be determined at a later date through the bankruptcy process.”
Other carriers also announced special short-term offers to help Spirit passengers.
“United, Delta, JetBlue, and Southwest are capping their ticket prices for Spirit customers,” Duffy said. “It’s going to vary between the airlines. You have to go to their websites to take advantage of these special offers. It is normally going to be about $200 for a one-way ticket. You’ll minimally have to provide to the airlines that you’re now going to book with your Spirit confirmation number and your proof of payment.”
Spirit also set up a website to answer questions about the shutdown.
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Ella Rae Greene, Editor In Chief
