Spirit Aviation Holdings Inc. is set to start an orderly wind-down process to sell its assets, capping the downfall of the low-cost carrier that has filed for bankruptcy twice in recent years and failed to clinch a last-minute US government rescue.

Spirit Aviation Holdings Inc.is winding down operations after the troubled US discount carrier buckled under the weight of surging fuel prices and a government bailout dangled by US President Donald Trump fell through. Bloomberg Intelligence Senior Aerospace, Defense, and Airlines Analyst George Ferguson and Bloomberg News White House Correspondent Jeff Mason join David Gura and Christina Ruffini on Bloomberg This Weekend to discuss. (Source: Bloomberg)

Spirit Aviation Holdings Inc. is winding down operations after the troubled US discount carrier buckled under the weight of surging fuel prices and a government bailout dangled by President Donald Trump fell through.

Spirit Aviation Holdings Inc. is winding down operations after the troubled US discount carrier buckled under the weight of surging fuel prices and a government bailout dangled by President Donald Trump fell through.

President Donald Trump said the federal government was still looking at a rescue plan for Spirit Airlines and had delivered a “final proposal.”

Talks over a potential $500 million US government rescue financing deal for Spirit Aviation Holdings Inc. have hit an impasse, with a lender group that includes Citadel, resisting terms that would likely severely impair their claims and recoveries, according to people familiar with the matter.

The Trump administration is weighing whether to invoke the Defense Production Act to support a potential bailout of Spirit Aviation Holdings Inc. according to a person familiar with the matter who requested anonymity because the talks are private.

President Donald Trump said he is considering having the US purchase Spirit Aviation Holdings Inc., saying it could be a potentially good investment for the federal government. "We’d be getting it virtually debt free. They have some good aircraft and good assets," the president told reporters Thursday. Bloomberg's Benedikt Kammel reports. (Source: Bloomberg)

President Donald Trump said he is considering having the US purchase Spirit Aviation Holdings Inc., saying it could be a potentially good investment for the federal government.

The US government tapped law firm Kirkland & Ellis to advise on a possible rescue deal for Spirit Aviation Holdings Inc., according to people familiar with the matter.

Ken Griffin’s Citadel has been intertwined in Spirit Aviation Holdings Inc.’s bankruptcies over the past two years. It even parted ways earlier this year with a portfolio manager after a series of losses that included a soured bet on the distressed budget carrier.

President Donald Trump said he would like to see a buyer emerge for Spirit Aviation Holdings Inc. and was open to the government coming to the aid of the airline, while opposing a merger between American Airlines Group Inc. and United Airlines Holdings Inc.

The giant multistrategy hedge fund Citadel parted ways with credit portfolio manager Zachariah Barratt after a series of losses, including a soured bet on Spirit Aviation Holdings Inc., according to a person familiar with the matter.

Spirit Aviation Holdings Inc. has struck an agreement with noteholders that will allow the US budget airline to exit bankruptcy later this year, capping a tumultuous period marked by strained finances and competitive pressure.

Bankrupt Spirit Aviation Holdings Inc. is in revived discussions to merge with Frontier Group Holdings, people familiar with the matter said, in a deal that could rescue the deep-discount airline from insolvency at a time of stiff competition from larger US carriers. A transaction could be announced as soon as this month, said the people, who asked not to be identified because the matter is confidential. The discussions are ongoing and could end without a deal taking place, they said. A representative for Spirit said it doesn’t comment on rumors and speculation. Frontier declined to comment. A merger between the airlines would mark a significant step for Spirit, which filed its second bankruptcy in less than a year in August. Bloomberg Intelligence Senior Aerospace, Defense & Airlines Analyst George Ferguson joins Bloomberg Businessweek Daily to discuss. He speaks with Carol Massar and Tim Stenovec. (Source: Bloomberg)