Spirit bailout idea fuels fears about government, business

The Trump administration is discussing a $500 million rescue deal for Spirit Airlines that could leave the federal government owning up to 90% of the company.

The Trump administration is discussing a $500 million rescue deal for Spirit Airlines that could leave the federal government owning up to 90% of the company after it emerges from bankruptcy.

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That could help preserve a low-cost option for travelers. But experts warn it could create a problematic chain reaction, particularly when it comes to other struggling companies looking for financial relief.

“This equity stake stuff has opened up a Pandora’s box,” Tad DeHaven, a policy analyst at the libertarian Cato Institute, told NBC News on Wednesday.