Trump Sparks Confusion With Bizarre Airline Claim, Floats $500 Million Spirit Deal
President Donald Trump sparked confusion on Thursday after incorrectly referencing a long-defunct airline while discussing a potential government move involving Spirit Airlines.
Speaking to reporters in the Oval Office, Trump was asked whether the federal government might take a stake in Spirit, a low-cost carrier that has faced significant financial trouble and filed for bankruptcy twice. In his response, he appeared to mix up key details about the airline’s history.
Trump said Spirit had once planned to merge with People Express, adding that former President Barack Obama blocked the deal years ago. He suggested the decision hurt both companies and described the proposed merger as a natural fit.
However, People Express ceased operations in 1987 years before Spirit Airlines emerged in its current form in the early 1990s. The merger Trump seemed to be referring to more closely resembles Spirit’s attempted tie-up with JetBlue, which was blocked in 2024 during President Joe Biden’s administration over concerns about reduced competition and higher fares.
The comments came as reports indicated the Trump administration is considering a major financial intervention in Spirit Airlines. According to sources, officials are close to finalizing a deal worth around $500 million that could leave the government with a controlling stake of roughly 90 percent.
Trump acknowledged the possibility of federal involvement, saying the administration is weighing options including a bailout or outright purchase. He argued that acquiring the airline could be financially beneficial, citing its aircraft and assets, and suggesting it could be sold later at a profit if market conditions improve.
He also emphasized the potential to preserve jobs, stating that saving the airline would protect workers and maintain industry capacity.
The proposal, if finalized, would represent a significant expansion of government involvement in the private sector. It also raises questions about executive authority and the use of public funds, particularly if such a move proceeds without congressional approval.
Trump’s remarks, including the apparent mix-up between different airlines and administrations, quickly drew attention and added to ongoing scrutiny of his public statements.
