Trump wants to boost Spirit Airlines, likely to the benefit of U.S. taxpayers (and investors of $FLYYQ as it sits in OTC markets like $FNMA and $FMCC).
The main elements of his plan as it stands right now
$500 million financing package: Advanced negotiations for a government-backed loan (more senior than existing creditor claims). This would provide immediate liquidity to keep operations running and allow Spirit to emerge from bankruptcy.
Government equity stake (up to 90%): In return for the funding, the U.S. would receive warrants convertible into a massive ownership position in the restructured Spirit (potentially majority or near-total control). Some describe this as the government effectively “buying” the airline.
Defense Production Act (DPA) as legal vehicle: The administration is exploring invoking this wartime authority to justify the intervention on national-security grounds. Part of the rationale includes using Spirit’s fleet (or excess capacity) for military transport of troops, cargo, or other defense missions. However, whether this pathway is used, I see it less likely to be actively employed.
Trump has repeatedly said the government should “help that one out,” “bail it out or just buy it” at the “right price,” and then “sell it for a profit when the price of oil goes down.” He cited job preservation and called it a good deal for taxpayers.
Similar to the Fannie Mae and Freddie Mac saga, the Intel stake, U.S. Steel, and others, this trade has incredible potential as Spirit exits bankruptcy. Further, as oil prices drop, revenues grow and value climbs.
DYOR, but this one's set to take off.