The editorial board of The Wall Street Journal has urged Donald Trump not to follow through on a reported possible plan to bail out Spirit Airlines.
In an opinion piece published Thursday, the conservative board of the Rupert Murdoch-owned newspaper argued there is no economic justification for a potential $500 million government rescue of the beleaguered airline, which could later allow the government to buy up to 90% of the company.
It would fuel moral hazard, said the board.
Read the full editorial at The Wall Street Journal.
Prominent conservatives have argued the same, with Sen. Ted Cruz (R-Texas) calling it an absolutely TERRIBLE idea.
Letting Spirit fail would be a useful lesson in market discipline, the board wrote, acknowledging that as many as 14,000 workers could be laid off if the airline were to enter liquidation just two years after its merger with JetBlue was blocked by the Biden White House.
Is this the revival of the Trump Shuttle, circa 1989? the board asked, referencing Trump's short-lived airline venture.
